How Critical is Critical Illness Insurance?

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How Critical is Critical Illness Insurance?

No financial plan is complete without an RRSP. With the tax advantages it offers today, along with the security it provides down the road, it’s little wonder why Canadians try to maximize their contributions every year.

But how protected are their RRSP savings from unforeseen circumstances, such as critical illness?

No one wants to think about getting sick, so your clients might consider critical illness insurance an unnecessary added expense and, as a result, they are hesitant to obtain the protection. If your clients express doubt about insurance, here are some reasons you can provide that will show them how important critical illness insurance is to protecting their investments:

  • Covers decreased household income: Short or long-term medical or disability benefits through your client’s employer may cover some of their household expenses, but critical illness insurance will add that extra layer of security so they aren’t tempted to withdraw from their RRSP.
  • Improves recovery time: The stress of knowing that their savings are being drained while they’re sick can impede your client’s recovery. With critical illness insurance, knowing that their expenses are covered and savings are protected means that your client can concentrate fully on their health.
  • Keeps retirement savings going: Depending on their level of coverage, supplementing insurance benefits with critical illness insurance may allow your clients to continue to actively contribute to their RRSPs during treatment and recovery.
  • Perfect for self-employed people: If you have a client who is self-employed, chances are they don’t have any short or long-term medical or disability insurance. If they get sick and can’t work, critical illness insurance will give them a safety net while they get better.
  • Covers most long-term care illnesses: Most policies cover illnesses that involve a long treatment and recovery period that could impact their income, such as some types of cancer, heart attacks, and stroke. Some policies also cover major organ transplant, Parkinson’s disease, deafness, and traumatic head injury. Optional add-on illnesses are also available.

During this RRSP season, be sure to reach out to your clients and recommend critical illness insurance to protect their family’s wealth now and in the future.

If you have any questions about how your clients can further protect their wealth, contact us today!

Want to discover the ultimate independent advisor’s experience? Let’s connect. Carte Risk Management Inc. (905) 238-3535.

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