We are often asked why our firm is such a proponent of critical illness insurance? And to answer it – we almost always go back to the founder of the product (Dr. Marius Barnard) who had come to the conclusion that advances in science and medicine were enabling people to survive serious illnesses from a medical perspective, but that they often struggled financially (such as unable to work, expensive costs associated with medical treatment, etc ).
Enter Critical Illness Insurance (CI) which provides a tax-free lump sum benefit 30 days after diagnosis of a defined critical illness.
But what are the odds of being impacted by a critical illness? The Heart and Stroke Foundation tracks current statistics on heart disease and stroke in Canada – and the numbers are shocking:
Stroke is the third leading cause of death in Canada – about 300,000 Canadians are living with the effects of a stroke. Of every 100 people who have stroke 15 die (15%), 10 recover completely (10%), 25 recover with a minor impairment or disability (25%), 40 are left with a moderate to severe impairment (40%) and 10 are so severely disabled they require long-term care (10%)
There are an estimated 70,000 heart attacks every year in Canada – that’s one heart attack every 7 minutes. As people with damaged hearts are living longer, they become more susceptible to heart failure – and it is estimated that there are 500,000 Canadians living with heart failure and 50,000 new patients are diagnosed each year.
When you look at these numbers it is important to note the number of people who actually survive a heart attack or stroke and who have to live the rest of their lives requiring medical treatment for disabilities or conditions that result. Financial consequences of a serious illness can often irreparably impact family finances and because they are so seldom thought of and planned for, their impact can be financially devastating.
Critical Illness is what our industry calls a Living Benefit – which is a benefit that pays the insured for living – generally 30 days after the diagnosis of one of the conditions described within the policy contract. The need for this coverage is because so many now do NOT die following a severe illness – rather they live – but may have used considerable capital during the initial sickness or now face time away from work with no income for family and dependents.
Statistics in the UK (where Critical Illness Insurance first entered the marketplace) show that the average age of people making heart attack, cancer, or stroke claims in the past 3 years (as reported in an industry article) was age 41 with a quarter of the claims from individuals under age 35.
Regardless of whether you are married, single, retired, beginning your career or in the middle of your peak earning years – if you haven’t thought about including Critical Illness protection in your portfolio, maybe now is the time.
