We all face many risks – contracting a critical Illness is one of them. Being diagnosed with a life threatening illness is not something anyone wants to contemplate; however, you can purchase critical illness insurance to protect against the financial impact.
The Back Story
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 experience with cardiac patients, Marius observed that patients with minimal financial stress, recovered more often and much quicker than those with financial hardship. He came to the conclusion 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.
Your Life Can 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 tennis player.
In 2006, 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.
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. As if the stock market crash was not enough, in December of 2008, Christina suffered a stroke. Fortunately, it was not a severe stroke. At first the doctors were unsure whether or not it was actually a stroke at all but perhaps only a TIA. The next morning, however, MRI results confirmed it was indeed a stroke that 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 a stroke.
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 shortly after the stroke she received a claim cheque for $400,000.
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 critical illness, not all covered conditions is life threatening. (ie loss of limb, blindness, etc.)
- The benefits are paid tax free
Call me to see if critical illness protection is right for you. You can also share this article with a friend or family member by forwarding this email, or using the sharing buttons below.