Critical Life Insurance
Most people wouldn’t hesitate to mortgage the future to
survive today. But shouldn’t there be a way to take care
of both your life now and your financial security tomorrow.
There is.
Critical Illness Insurance Saves
Lives and Savings
Would you give away half a million dollars of your life
savings if it meant getting the medical treatment that would
save your life?
Faced with that choice, most people wouldn’t hesitate
to mortgage the future to survive today. But shouldn’t there
be a way to take care of both your life now and your financial
security tomorrow: There is. It’s a Critical Illness Recovery
Plan, and it can be used to secure your RRSP and your future
when you face the enormous financial demands that often
accompany catastrophic illnesses such as heart attack, stroke,
and cancer.
Medical expenses deplete RRSP
Risking the future to survive today. That’s effectively
what an individual would be doing if the decision was made
to cash out even a portion of an RRSP to pay for a medical
procedure that was only available in the U.S. when it was
needed the most.
The numbers tell the story. If you were diagnosed with
a cancer that threatens your life, you might find that the
therapy you require is available right now in the U.S. at
a cost of $50,000 (U.S.). Anxious to get treatment, you
opt for the out-of-country medical care, and you turn to
your RRSP savings. That $50,000 in American dollars you
need converts to $75,000 in Canadian funds. And then there
are the tax implications that go along with early RRSP withdrawals.
Assuming a 40 per cent tax rate, you’ll have to take out
$125,000 to net the cash required to pay for those American
medical services
And what’s the long-term impact of that withdrawal on your
RRSP? For a 45 year old routinely making $10,000 RRSP contributions
annually and assuming an 8 percent annual return, the long
term effect of that $125,000 withdrawal is not just the
cashed-out amount itself: it is also the money not earned
in retirement savings as the RRSP rolls forward each year
without that amount. By age 65, you would see that the $125,000
withdrawal represents a staggering difference of $582,620
in savings no longer.
Critical Illness a better option than RRSP!
For less than $70 a month, a 40 year old Canadian male non-smoker
could purchase a $75,000 Critical Illness Recovery Plan
policy that would provide the cash for that life-saving
medical treatment without compromising the future security
promised by his RRSP. Benefit options are available ranging
from $10,000 to $1 million.
The chances are better than ever today that if you suffer
a critical illness, you will survive it. So while you should
be confident that your life will go on, you should take
steps to make sure your financial security does as well.
Critical Illness Recovery Plans provide the cash to deal
with the unexpected expenses that result from catastrophic
illnesses. It offers a lump-sum benefit when individuals
are diagnosed with or, in some cases, require surgery for
any of the following: cancer, heart attack, stroke, Alzheimer’s
disease, multiple sclerosis, Parkinson’s disease, coronary
artery bypass surgery, major organ transplant, blindness,
deafness, loss of speech, paralysis/loss of limbs, coma,
renal (kidney) failure, severe burns, occupational HIV infection
or motor neuron disease and they survive the waiting period.
Because there are no restrictions on how the full cash
benefit can be used, critical illness insurance is ideal
for accessing quick and expert medical service available
in other countries, including the U.S. This year, more Canadians
than ever will survive near-fatal illnesses.
Email or call us today to find
out how you and your family could benefit from a Critical
Illness Recovery Plan.
More questions? No problem... Contact us here
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