Critical Illness – Are You Protected?

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Why a Doctor Invented Critical Illness Insurance

Critical Illness insurance was invented by Dr. Marius Barnard. Marius assisted his brother Dr. Christiaan Barnard in performing the first successful heart transplant in 1967 in South Africa. Through his years of dealing with cardiac patients, Marius observed that those patients that were better able to deal with the financial stress of their illness recovered more often and at a much faster rate than those for whom money was an issue. He concluded that he, as a physician, could heal people, but only insurance companies could provide the necessary funds to create the environment that best-promoted healing. As a result, he worked with South African insurance companies to issue the first critical illness policy in 1983.

Medical practitioners today will confirm what Dr. Barnard observed – the lower your stress levels, the better the chances for your recovery. When one is ill with a serious illness, having one less thing to deal with, such as financial worry, can only be beneficial.

Your Life Could Change in a Minute!

Case Study A – Lawyer, Male 55

Tom was a successful lawyer with a thriving litigation practice. He had recently started his own firm and was recruiting associates to build the practice. He was a single father assisting his two adult children in their post-secondary education. Tom had always enjoyed good health, ate well, exercised regularly and was a competitive, highly ranked (senior class) tennis player.

At age 55, he was diagnosed with prostate cancer. In addition to the emotional angst and anger at receiving this diagnosis, he also was concerned about the financial impact this illness could have on both his practice and his support of his children. Fortunately, five years earlier, at the urging of his financial advisor, he had purchased a critical illness policy.

Within weeks of his diagnosis, Tom received a tax-free benefit cheque for $250,000. He immediately called his advisor to tell him how elated he was that the advisor had overcome his initial objectives to purchase the policy five years earlier. He went on to say that with having the financial stress alleviated, he was certain he would be able to tackle the treatment and concentrate on recovery in a positive manner.

Today, Tom is cancer-free, his practice is thriving, and his children are successfully working in professional practices.

Case Study B – Retired Business Owner, Female 52

Christina at age 52 was enjoying a good life that came partially from the sale of her business a few years before. Her investments were thriving and everything looked rosy. Then 2008 came along. Christina suffered a stroke. Fortunately, it was not a severe stroke. At first, the doctors thought that it was actually a TIA as many of her symptoms were minor. The next morning the MRI results confirmed that it was indeed a stroke and it had caused some minor brain damage.

Christina made a remarkable recovery and within a few short months was almost back to where she was before the stroke. If you didn’t know Christina, you wouldn’t have any idea that she had even had one.

As a successful business owner and mother, Christina had always been a big believer in the advantages of owning critical illness insurance. At first, she had some concern that because her stroke was not that serious and she had recovered so quickly, that her claim might not qualify for payment. These fears turned out to be unfounded as days after the stroke she received claim cheques for $400,000.

During her recovery period, Christina was fearful of having another stroke which caused her some stress however, she is certain that not having any financial worries during this time aided in her almost total recovery.

These two case studies, although quite different in circumstances illustrate some key points about Critical Illness insurance:

  • A life-threatening illness or condition can strike anyone regardless of age or health;

  • Financial security reduces stress which can assist in the recovery process;

  • You do not have to be disabled to be eligible for a Critical Illness benefit;

  • Although you need to be diagnosed with a life-threatening illness, you do not have to be at “death’s door” in order to have your claim paid;

  • The benefits are paid tax-free to the insured.

Reach out to me if you have any questions and please feel free to share this information with anyone you think would find it of interest.

Copyright @ 2024 FSB Content Marketing Inc.- All Rights Reserved

Critical Illness – Are You Protected?

/in , /by

Why a Doctor Invented Critical Illness Insurance

Critical Illness insurance was invented by Dr. Marius Barnard. Marius assisted his brother Dr. Christiaan Barnard in performing the first successful heart transplant in 1967 in South Africa. Through his years of dealing with cardiac patients, Marius observed that those patients that were better able to deal with the financial stress of their illness recovered more often and at a much faster rate than those for whom money was an issue. He concluded that he, as a physician, could heal people, but only insurance companies could provide the necessary funds to create the environment that best-promoted healing. As a result, he worked with South African insurance companies to issue the first critical illness policy in 1983.

Medical practitioners today will confirm what Dr. Barnard observed – the lower your stress levels, the better the chances for your recovery. When one is ill with a serious illness, having one less thing to deal with, such as financial worry, can only be beneficial.

Your Life Could Change in a Minute!

Case Study A – Lawyer, Male 55

Tom was a successful lawyer with a thriving litigation practice. He had recently started his own firm and was recruiting associates to build the practice. He was a single father assisting his two adult children in their post-secondary education. Tom had always enjoyed good health, ate well, exercised regularly and was a competitive, highly ranked (senior class) tennis player.

At age 55, he was diagnosed with prostate cancer. In addition to the emotional angst and anger at receiving this diagnosis, he also was concerned about the financial impact this illness could have on both his practice and his support of his children. Fortunately, five years earlier, at the urging of his financial advisor, he had purchased a critical illness policy.

Within weeks of his diagnosis, Tom received a tax-free benefit cheque for $250,000. He immediately called his advisor to tell him how elated he was that the advisor had overcome his initial objectives to purchase the policy five years earlier. He went on to say that with having the financial stress alleviated, he was certain he would be able to tackle the treatment and concentrate on recovery in a positive manner.

Today, Tom is cancer-free, his practice is thriving, and his children are successfully working in professional practices.

Case Study B – Retired Business Owner, Female 52

Christina at age 52 was enjoying a good life that came partially from the sale of her business a few years before. Her investments were thriving and everything looked rosy. Then 2008 came along. Christina suffered a stroke. Fortunately, it was not a severe stroke. At first, the doctors thought that it was actually a TIA as many of her symptoms were minor. The next morning the MRI results confirmed that it was indeed a stroke and it had caused some minor brain damage.

Christina made a remarkable recovery and within a few short months was almost back to where she was before the stroke. If you didn’t know Christina, you wouldn’t have any idea that she had even had one.

As a successful business owner and mother, Christina had always been a big believer in the advantages of owning critical illness insurance. At first, she had some concern that because her stroke was not that serious and she had recovered so quickly, that her claim might not qualify for payment. These fears turned out to be unfounded as days after the stroke she received claim cheques for $400,000.

During her recovery period, Christina was fearful of having another stroke which caused her some stress however, she is certain that not having any financial worries during this time aided in her almost total recovery.

These two case studies, although quite different in circumstances illustrate some key points about Critical Illness insurance:

  • A life-threatening illness or condition can strike anyone regardless of age or health;

  • Financial security reduces stress which can assist in the recovery process;

  • You do not have to be disabled to be eligible for a Critical Illness benefit;

  • Although you need to be diagnosed with a life-threatening illness, you do not have to be at “death’s door” in order to have your claim paid;

  • The benefits are paid tax-free to the insured.

Reach out to me if you have any questions and please feel free to share this information with anyone you think would find it of interest.

Copyright @ 2024 FSB Content Marketing Inc.- All Rights Reserved

Strategies for Multi-Generational Planning

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The Sandwich Generation was a term coined by Dorothy Miller in 1981 to describe adult children who were “sandwiched” between their aging parents and their own maturing children. There is even a term for those of us who are in our 50’s or 60’s with elderly parents, adult children and grandchildren – the Club Sandwich. More recently, the Boomerang Generation (the estimated 29% of adults ranging in ages 25 to 34, who live with their parents), are adding to the financial pressures as Boomers head into retirement.

It is estimated that by 2026, 1 in 5 Canadians will be older than 65. This means fewer adults to both fund and provide for elder care. Today, it is likely that the average married couple will have more living parents than they do children.

What are the challenges?

The truth is that many members of the Sandwich Generation find the circumstances are both emotionally and financially draining. In the past, women have been looked upon to provide the primary care giving in the home while men take care of the income needs. Today, roles have changed with the majority of working age women employed outside of the home. As a result, financially, both parents are looked upon to provide for the family. For The Sandwich Generation helping their parents and their children at the same time, creates stress that can affect both their mental and physical health.

Risk Management in the Sandwich Generation

Having an effective financial plan becomes key in dealing with the challenges. As the main breadwinner in this situation, it is possible that three generations are dependent upon you. One of the first issues to be addressed then is how you protect your revenue stream.

Steps to Minimize risk for the Sandwich Generation

  1. Have an open and clear discussion about family resources and needs – The older generation needs to have a discussion with their children so that everyone knows what steps have or have not been taken to provide for the senior’s care when they are no longer able to care for themselves. This would also be a good time to initiate or continue any talk about what liquidity needs exist for taxes, long term care, funeral costs and last expenses etc.
  2. Complete a life insurance needs analysis – Where there is not sufficient capital to continue family and dependent’s income at the death of a breadwinner, life insurance can provide the necessary funds required to maintain lifestyle, pay debt, reduce mortgages, fund children’s education and provide money for aging parent’s care. Life insurance is an affordable way to guarantee future security.
  3. Review your disability and critical illness coverage – If there is not sufficient income that will continue to be paid should you become unable to work due to sickness or accident, consider long term disability coverage. Critical illness insurance will provide needed capital in the event of diagnosis of a life-threatening illness or condition. Not only will this provide financial support but will also improve your chances of recovery without the financial stress that often accompanies such a condition.

  4. Investigate Long Term Care Insurance     – Having the appropriate amount of LTC insurance will help to reduce the stress of having to care for a parent when they are no longer able to fully care for themselves. Consider having all the siblings share the cost.
  5. Draft a Living Will or similar Representation Agreement – Making your wishes known to your loved ones in the event you are no longer capable of making medical decisions will go a long way to providing comfort to all concerned when difficult choices need to be made.

As you can see, being part of the Sandwich Generation can be very stressful – emotionally and financially. Having someone to talk to or being part of a support group dealing with this issue, will certainly help manage the emotional challenges.

Let’s connect soon to discuss what strategies you may need to implement to provide the financial security your family needs.

Copyright @ 2024 FSB Content Marketing Inc.- All Rights Reserved