Are you prepared?

MOST CANADIANS REALIZE THAT IT MAKES GOOD SENSE TO BUY an insurance policy to protect their family or business against the financial consequences of untimely death or disability. But how many consider an insurance policy that pays out on survival of a critical illness?

The possibility of becoming critically ill isn't something anyone likes to consider, but statistics are hard to ignore. In Canada, one in four will suffer heart disease or stroke, and one in three will develop some form of life-threatening cancer. Too many of us have seen these numbers become reality when an unexpected illness takes its toll on someone close to us. The good news is that recent advances in medical science, along with a growing trend toward fitness and health awareness, have increased chances of surviving a critical illness. The bad news is that survival can be expensive. To compensate for the high cost of overcoming a critical illness, at least 10 companies now offer life insurance that pays out on survival, rather than on death. In the industry they're known as critical illness policies.

Can we trust our health care system?

Our health care system has undergone a lot of changes in recent years and continues to be in flux. Many of the expenses related to critical illness simply aren't covered by the government, employers or disability insurance. Medical research is constantly discovering new avenues to explore for possible cures, but many treatments won't be covered by government health plans until years of testing have passed. Sometimes only the wealthy are able to get the latest treatments.

A critical illness insurance policy could open access to out-of-province or out-of-country treatment otherwise too costly to pursue. A word of caution, there are several critical illness insurance plans in today's market. Before you decide to buy, get a qualified advisor to discuss which plan gives you maximum protection. Most cover cancer, heart disease and stroke, known as "the big three", since the chance of incurring one of them is much greater than any of the secondary diseases sometimes covered. However, not all plans cover cancer, heart disease and stroke equally; exclusions and restrictions vary, so read the fine print carefully.

After the big three coverage, individual plans diversify in what they include. Some cover conditions like multiple sclerosis, paralysis, kidney disease, loss of speech or hearing, and so on. It's wise to get a plan that covers the highest number of variables. But keep in mind that the more comprehensive the coverage, the more expensive it tends to be. You get what you pay for, a few more dollars a month could translate into thousands saved years down the road if you acquire a type of cancer covered under your policy.

None of us like to think about the likelihood of suffering from a critical illness, but the statistics show that it's a possibility we face. Owning a policy that covers it could prove critical to your financial well-being.

Speak with a Qualified Professional today to help choose the right Critical Illness plan for you.