feature Critical Illness protection An important part of a family’s financial plan ou may have heard of critical illness insurance. It’s an interesting product that has been gaining popularity, partly because it was not designed by an insurance com-pany but by a doctor. Dr. Marius Barnard is a surgeon who was part of a team that performed the world’s first heart transplant in 1967. Barnard saw first-hand the financial hardship his patients suffered when going through a critical illness. He lobbied the in-surance industry to introduce a new type of “living benefit” to cover the financial impact of a critical illness. He argued that, as a medical doctor, he can repair a person physically but only insurers can repair a patient and their family’s finances. He felt families needed access to a financial product that could help when hit with random and sudden major health issues such as cancer, heart attack or stroke. In 1983 the first critical illness policy was launched in the U.k. and in the 1990s the concept came to Canada. Fast forward to today, and increasingly we see the medical profession saving lives of peo-ple who in the past may have died from their illness. With future advances in medicine and treatment, this positive trend is likely to continue. Unfortunately, the patient and their family are often left to deal with huge emotional and financial consequences of their survival. (Statistically in Canada today, 90 per cent of heart attack victims and 75 per cent of stroke victims survive the initial event, and the overall cancer survival rate has doubled in the past 30 years.) Y Paul Philip CFP, CLU LIFE IS RANDOM No one likes to think that a serious illness could happen to them but the truth is it can affect anyone at any time. Think for a moment of super athletes like Lance Armstrong, Saku koivu and Mario Lemieux, all diagnosed with cancer at a young age. Michael J. Fox was diagnosed with Parkinson’s disease before age 40. Healthy young singers like Sheryl Crow and Melissa Etheridge have survived breast cancer. Most recently, the leader of the NDP party, Jack Layton’s sudden battle with cancer became public. None of us knows for sure what our future holds, but having a strategy to deal with whatever life brings is smart planning. HOW CRITICAL ILLNESS INSURANCE WORKS One of the benefits of being designed by a doctor and not an insurance company is that critical illness insurance is straightforward. If one of a wide list of serious illnesses occurs, including but not limited to cancer, heart attack or stroke, then, after a waiting period – usually 30 days after the diagnosis – you receive your tax-free lump sum insur -ance benefit. It’s black-and-white. If you suffer an illness that is contractually covered and the waiting period is satisfied, then the claim is paid. WHAT IT DOES Recovering from illness costs money. Treating and coping with illness can mean signifi-cant and often unexpected costs. The real magic of this product comes from the variety of ways you can use the money and the impact it can have on you and your family’s life. No two health or personal situations are the same. You get to choose what options and choices are best for you. Some of the unique ways people have used their funds to get through that difficult period are: • finding the best heath care available; • accessing alternative care and non-traditional treatments; • hiring a nurse or caregiver to help at home; • paying a mortgage or getting help with debts; • providing income when they couldn’t work or a loved one couldn’t work because they accompanied them to treatment; • protecting retirement plans and assets; www.canadianchiropractor.ca Paul Philip, CFP, CLU, and Nancy Philip, CFP, CLU, are a dynamic sib-ling team who have been advising hundreds of chiropractors across Canada since 1992. Their firm, Fi-nancial Wealth Builders, is located in Toronto, Ontario. To learn more about building your wealth, visit their website at www.fwb-inc.com or contact Paul or Nancy at 416-497-0008. Nancy Philip CFP, CLU 38 • Canadian ChiropraCtor | oCtoBEr 2011
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