With Critical Illness Insurance, you can secure financial security if faced with an unexpected diagnosis that can cause financial hardship.
Don’t risk the future to survive today. That’s effectively what people do when they don’t get Critical Illness Insurance.
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.
That’s where Critical Illness Insurance comes in!