There are a number of obstacles that could potentially de-rail a comfortable retirement. These include marriage breakdown, a stock market crash, and being sued. Another huge obstacle would be the diagnosis of a life threatening critical illness affecting you or your spouse. While it might be difficult to insulate yourself against some of the threats to retirement security, Critical Illness insurance goes a long way to mitigate the financial disaster that could result from a change in health as we approach retirement.
Considering that the wealth of many Canadians is comprised of the equity in their homes and the balance of their retirement plans, having to access funds to combat a dreaded illness could put their retirement objectives in jeopardy. Imagine that you are just a few years into or approaching retirement and you or your spouse suffers a stroke. The prognosis is for a long recovery and the cost associated with recovery and care is projected to be substantial. Statistics show that 62,000 Canadians suffer a stroke each year* with over 80% surviving* many of whom would require ongoing care. Since 80% of all strokes happen to Canadians over 60 those unlucky enough could definitely see their retirement funding jeopardized. Read more
Why a Doctor Invented Critical Illness Insurance
Critical Illness insurance was invented by Dr. Marius Barnard. Marius assisted his brother Dr. Christiaan Barnard in performing the first successful heart transplant in 1967 in South Africa. Through his years of dealing with cardiac patients, Marius observed that those patients that were better able to deal with the financial stress of their illness recovered more often and at much faster rate than those for whom money was an issue. He came to the conclusion that he, as a physician, could heal people, but only insurance companies could provide the necessary funds to create the environment that best promoted healing. As a result, he worked with South African insurance companies to issue the first critical illness policy in 1983. Read more
Geraci Financial Group can help you set up an Executive Health Savings Plan to allow your shareholder clients own Critical Illness insurance jointly with their company. EHSP will pay their company a tax free benefit if they become critically ill. And, if they remain in good health and don’t submit a claim before the plan matures, EHSP will pay them a benefit.
In the event of critical illness:
the company receives a tax-free benefit payment upon diagnosis of one of the critical illnesses or conditions covered in the policy.
The lump sum could be used to:
- hire qualified replacement personnel.
- Pay an amount of money (e.g. a dividend) to the insured to cover the expense associated with a serious illness.
- Cover fixed business expenses.
- Limit the decrease in revenue or financial losses incurred as a result of temporary or extended absence from work
In the event of death:
The company can receive a lump sum equal to the paid premiums (minimum 25% of the sum insured). Read more