A real-life example of the importance of Critical Illness Insurance

Why Do You Need Critical Illness Insurance?

Scanning the internet, I read so much information about insurance companies and their products, but not one person explains why.  Why do you need critical illness insurance? 

Do you really need more insurance?

I personally carry critical illness insurance so I am a huge proponent. 

I’ll tell you a story about a real client, and I can assure you, this is just one of many. A while back, I met with a friend to talk about insurance coverage.  Our conversation led to critical illness insurance.  After discussing the products and companies, he decided that he didn’t need it.  What I should have told him was, when you need critical illness insurance – it’s too late.  About a year later his wife was diagnosed with stage 4 breast cancer.  Immediately she was admitted to the hospital for a mastectomy, chemo and radiation therapy.  

Not having critical illness insurance can be financially devastating

As if a grim cancer diagnosis wasn’t enough stress, the family struggled desperately for money. Now a one-income household, her husband took constant sick days caring for her and the kids.  Parking at the hospital cost $75.00 per month.  Physiotherapy to counter the shoulder and back pain from the mastectomy added $500 per month. They lost their benefits due to time off work and OHIP didn’t cover most of her medications, adding another $1000 monthly.  Seeking relief from the government, they were told she didn’t qualify for disability and her unemployment eventually ran out. They couldn’t afford the added costs and she was forced to cut her physio and live with the constant pain.  

Advice: Separate and go on welfare – Really?

The only advice offered was to separate, apply for welfare, and the government would cover her medication. Uneasy with a fraudulent separation, they wanted the kids to remember a happy, loving family. Her husband came to me after her diagnoses deciding that now they needed critical illness insurance. Unfortunately, I had to tell him that they didn’t qualify because she was already sick. I felt awful but there was nothing I could do. Through friends and family, a benefit was held and they raised enough money to cover living expenses for two months. It was a help, but not enough.

I wish I had convinced him back then to take the insurance.  She eventually passed away and the family was forced into bankruptcy.  This story is sad, but not as rare as most believe.   How would this situation effect your finances?  Would you have to collapse your retirement savings or even declare bankruptcy?  You may never need to claim on the policy, but having it offers security and peace of mind.

The perception is, it won't happen to me...

The reality is it does happen to many!

Use it or your money back

Some people will read this story and say “that won’t happen to me”.  The reality is it happens to so many!  The best feature of critical illness Insurance is that some policies offer a FULL REFUND of all the premiums paid in the event you never needed the coverage.  To me, that is the best kind of insurance…  The kind that returns your money if you didn’t need it.

Jim Thornton, CLU

Follow me here

About the Author

Jim Thornton is a Financial Planner with Assante Capital Management Ltd. Please contact him at (519) 752-3155 to discuss your particular circumstances prior to acting on the information above.

Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

Speak to an Advisor Today!