February is heart month, so we are reminded of love and romance…but I will leave that topic to the experts.
However, seeing that it is heart month, people are also reminded to be concerned about their health. Heart month may remind individuals to attend that missed annual check-up, or to change their diet, or to add regular exercise to their daily routine. All this added effort to improve their health or to prevent a major medical crisis such as a heart attack.
I am a proponent for “an ounce of prevention” as they say, but what if you do experience that heart attack or any other major illness? Are you financially prepared? Have you accounted for this possibility in your financial plan? If you are the majority that has not, this is where critical illness insurance comes in.
Critical Illness Insurance is designed to provide you with an amount of tax free cash (lump sum payment as opposed to monthly income payments traditional to disability policies), paid 30 days after being diagnosed with a critical illness covered within such an insurance policy. There are several critical illnesses covered within a traditional critical illness policy; cancer, heart attack, stroke, multiple sclerosis are but a few. This insurance benefit can be used in any way you choose. The most common uses of Critical Illness Insurance benefits are:
- Relieve debt obligations like your mortgage
- Replace lost income due to you or your spouse being off work
- Make modifications to your home for access and mobility
- Pay for cutting edge treatments not covered by provincial health care insurance plan
- Go to the USA for private health care vs. waiting for treatment in your province
- Seek alternative treatments around the world
- Have the financial freedom to spend quality time with family and friends
Albert Einstein, not quite a romantic, once said “you cannot prevent and prepare for war at the same time”… But in this case, “an ounce of prevention is worth a pound of cure” and you can financially prepare you and your family for a critical illness.