Another holiday season has come and gone: the tree has been sent to the chipper (or back into the box) and the baubles are packed away for another year. As the credit card statements start to arrive, many of us are reflecting on the amount of money we have spent over the holidays. Even though most of us overspend at Christmas the rewards of family memories usually offset the pain of paying for it. Some things are valued beyond dollars and cents.
Another thing that’s hard to put a value on is your health. Unlike Christmas that we plan for every year, our health can be gone in an instant. We all realise that yet many of us put off planning for a health crisis.
Perhaps now is the time to assess the value of protecting you and your family with Critical Illness Insurance. Consider that every year you delay the cost increases and the likelihood of a health crisis increases.
Statistics of heart attacks, stroke, cancer and other critical illnesses are not encouraging. Don’t take your insurability for granted: if you are still insurable, the good news is that you can take advantage of that now and provide much needed security for you and your family.
The truth is, it will not be very long before the current, fully guaranteed Critical Illness insurance is no longer available in Canada. Low interest rates and high reserve requirements are forcing insurance companies to reflect as to how long they can continue to provide the best CI products available in the world. As a result, prices will most likely increase, benefits and guarantees reduced or a combination of both.
What is the value of knowing that you can provide for your family even if the unexpected happens?
Consider the following facts:
- 40% of Canadian women and 45% of men will develop cancer during their lifetime
- In 2005, cardiovascular disease (heart disease, diseases of the blood vessels and stroke) accounted for 31% of all deaths in Canada
Advances in medical science means that you have a better chance of surviving a critical illness. However, a critical illness often is accompanied by a huge financial burden to you and your family.
Did you know …
- The average cost of treatment with newer cancer drugs is $65,000
- 75% of cancer drugs taken at home cost more than $20,000 annually
Not all Canadians are insured for these costs. For cancer patients without adequate insurance protection, these costs can be devastating.
Be financially prepared. Increase your chances of successfully dealing with a critical illness.
Information provided by BMO Insurance
By Brenda Spiering, Editor, BrighterLife.ca
You don’t need to be born with a silver spoon in your mouth to build wealth. With the right products, you can grow and protect a healthy nest egg.
Here are five key financial products that should be part of your plan:
1. Registered Retirement Savings Plan (RRSP)
As soon as you begin your working life, you should have a registered retirement savings plan (RRSP). It’s one of the most tax effective ways to save for retirement. You’re allowed to contribute up to 18% of your earned income from the previous year to a maximum of $22,450 for 2011. (If you’re a member of a group pension plan, your contribution room is reduced by your “pension adjustment,” an amount you’ll find listed on your T4.)
Contributions are tax deductible, meaning you can net a tidy tax refund while building your savings. Plus, you can turbo charge your RRSP savings by putting that tax refund back into your RRSP as soon as you receive your cheque.