Reality teaches us that illness knows no age, and the recent 2010 Annual Report of the Heart and Stroke Foundation – “A Perfect Storm” – highlights how this statement is becoming more and more accurate as each year passes. All parents, myself included, would rather believe that our own children are immune, and that there is no way that one day they could be stricken by a severe illness or condition.
But what if, God forbid, it did happen? Would you have the resources to remain at bedside with him or her during a long period of convalescence? We’ve all seen the posted notices or heard the radio ads for the neighbourhood barbeque or yard sale being put together by loved ones for a family trying to come up with the means to see their little one through the unfair and unforgiving plight of some significant disease or accident.
One ray of hope for parents in Canada today is that, although we cannot eliminate the incidence of these various conditions, there may be a means for your family to eliminate, or at least plan for, the immense financial considerations that accompany such a situation – RISK FREE. A suitable critical illness insurance policy could provide a family with a diagnosed child a tax-free lump sum benefit that could be used to:
- Give you the financial means to temporarily leave your job and devote yourself to your child’s recovery
- Defray the costs of drugs or treatments not covered by the government, or in a private clinic
- Cover expenses from care in a specialized hospital far from home
- Hire a temporary helper for children at home or to pay additional childcare fees
- Eliminate financial worries often linked to illness and convalescence
- And most importantly, allow you to focus your energies on your child, because the presence of a parent at the bedside of a sick child can have a large influence on his recovery
The risk of paying ‘unnecessary insurance premiums’ can be offset with a Return of Premium rider. In the event that your child grows up healthy without claim, up to 100% of your premium dollars may be returned to you, pending the details of the policy you put in place. The cost of coverage for a child is typically quite affordable, as well; one company will provide a $50,000 benefit for a newborn at less than $40 per month.
As can be expected, the illnesses and conditions covered, the premiums payable, and any additional benefits (such as the Return of Premium) will vary greatly from company to company, so BE SURE that you completely understand what your options are. Rest assured, however, that there are some fabulous children’s critical illness policies available at a reasonable cost – many of which will also include additional support such as free access to Best Doctors services.
The tragedy associated with this ‘ray of sunshine’, unfortunately, continues to be the clouds of ignorance that surround it. Far too many Canadian families do not even realize that this type of solution even exists. Far too few advisors are taking the time to introduce and properly explain it to their clients. And far too many parents are shouldering these immense risks on their own, when they could be transferring them to large insurance companies that can afford to take them.
After successfully launching his career as a Financial Advisor with Sun Life Financial, Will is extremely pleased to now be positioned to serve his clients as part of the Marlin Financial team. Will is an active member, patron, and sponsor of the arts community – having served in the past on the Board of Directors of Theatre Kingston, Domino Theatre and the Kingston Arts Council. Will can be reached via email at will@marlinfinancial.ca or by phone at (613) 354-9678.
This article is provided for information purposes only, and should not be considered to be legal or financial advice. For further information and recommendations suited to you and your family, please consult your financial advisor.