WARNING: This article will discuss a subject that you may not feel comfortable reading. As a parent myself, it is very difficult to write. Reader Discretion is advised.
Critical illness insurance is fast becoming an important and vital piece of your personal wealth building plan. As opposed to Life Insurance, which is a death benefit, critical illness is a living benefit policy. In its most basic form, critical illness policies pay you a lump sum of money if you are diagnosed with a critical disease, such as cancer, heart attacks or stroke, and survive 30 days.
Critical illness is the most VITAL coverage adults can get – for ourselves and for our family members – because it gives us the money to help get better. In best case scenarios, that is, in worst case scenarios it helps us live out the rest of our lives as we wish. I digress from the main point of this post, which is why critical illness protection is just as important – if not more so – for your children.
Children’s critical illness protection is very similar to its adult counterpart except coverage can include up to 6 childhood diseases including Autism, Rhett’s Syndrome, Cystic fibrosis, Type 1 diabetes, Cerebral palsy and Muscular dystrophy. You can accumulate cash values and it also provides access to Best Doctors.
Best Doctors Inc. is a world leader in connecting people with the best medical care. With its renowned database containing over 50,000 doctors recognized as the best by top specialists, Best Doctors provides immediate access to the best medical knowledge and peace of mind to millions of people around the world.
Now you might be thinking, “Why does my child need insurance, they don’t need money” and you would be right, they don’t. You do. I felt the same way, until the unexpected happened to my own family.
Earlier this year, my young son (9 months old at the time) became sick – not critically ill, just sick. He was vomiting constantly, could not hold anything down and had a fever. This normally vibrant and active baby was reduced to a limp shell of his former self – needless to say it was extremely scary time for my wife and I. We kept trying to keep him hydrated and finally had to rush him to emergency to make sure that he was okay. Luckily, he did not need to get an IV to rehydrate himself, but his condition was close. We had to monitor him for days with the pedia-lite and within a week or so; we got our happy baby back.
Lucky for us, my wife was still on maternity leave and had the time to take care of him, but what would happen if she wasn’t? The simple answer is that one, or perhaps the both of us would stay home and take care of him.
What if he was sick for a few days and we thought of nothing to take time off work. What would happen if he was critically ill? Same answer – we would take time from life to be with him but at what cost? What happens to the mortgage? How about car payments? How about the bills? How much savings do you have, are you going to tap into your RRSPs?
Preventative action is always the best solution – Be Proactive. We all want our children to grow up healthy and strong – and knock on wood they will! In those few instances when a sickness does occur – wouldn’t it be nice not to worry about paying the bills? Just take care of your child and let the payout handle your expenses. Your job will still be there (unless you have a dink for a boss).
Coverage for peace of mind for your child is minimal. For example: My son is 1 ½ years old. For $100,000 worth of coverage (covering 25 illnesses + 6 specific to children) it costs me $49 per month. The best part is that I only pay for 20 years. After that, I can keep the coverage for him (minus the 6 children’s illnesses) or I can cash it out. If I cash it out, I get most of my premium back (except for the amount that I pay for financing it monthly. So I could theoretically get $10,860 back vs. the $11,728.80 I paid.
I am not trying to scare you into buying this coverage – but it is (admittedly) an emotional product. We don’t know what the future holds, but I would hope that if anything happens to our children, we would drop everything to help them out.
Children’s Critical illness protection is relatively inexpensive and you can make sure that once your child gets better, they will still have a home to come back to.