Getting Sick Doesn’t Mean Your Finances Need to Suffer Too

Many readers have been following the recent media reports about the high cost of specialized breast cancer medications that have been unavailable up until recently for Canadian women. I’ve recently had some questions from women about what would happen to them and their financial situation if they needed expensive treatment or care and did not have readily available cash.

Unfortunately, many of us do not have to look far beyond our circle of family, friends and co-workers to find someone who has suffered a major illness or injury. Recovering from a critical illness can leave one devastated both emotionally and financially. Financial stress can result from the inability to continue working, medical costs not covered through provincial or personal medical insurance plans, or the financial setback to one’s long-term savings strategy.

Fortunately, there are options. More and more Canadians are discovering the value of critical illness insurance, and how it can protect their hard-earned financial resources if they’re diagnosed with a critical illness. This type of insurance allows those who are ill to focus on what’s most important – getting better.

Critical illness insurance is a fairly new type of insurance protection that pays a benefit upon the diagnosis of a critical illness – unlike traditional insurance that pays a beneficiary upon death. Upon diagnosis of a critical illness, the insurance company imposes a waiting period. Once it has expired, the policy provides the policy owner with a lump-sum cash benefit. The choice of how to use the benefit is yours and it is tax-free.

Some things to consider when investigating critical illness insurance plans:

your current financial plan
flexibility of the product
strength of the coverage offered for the conditions that matter most to you,
range of features and options, and the company’s reputation.

A decade or two ago, the chances of surviving major illnesses such as stroke, heart attack or cancer were significantly lower than they are today due to medical advances. Having a critical illness insurance plan in place ensures that if you do fall ill, your worries will not be compounded by financial ones. Critical illness insurance will ensure you are able to concentrate on getting well and being with your loved ones.

For more information about critical illness and other types of insurance visit: www.insurance-canada.ca

Bev Moir is a financial planner with The Moir Team at ScotiaMcLeod in Toronto.

This article is for information purposes only. It is recommended that individuals consult with their own financial or tax advisor before acting on any information contained in this article. The opinions stated are not necessarily those of Scotia Capital or The Bank of Nova Scotia. When discussing Life Insurance Products, ScotiaMcLeod Investment Executives are acting as Life Underwriters representing ScotiaMcLeod Financial Services (Ontario) Inc.