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Critical Illness Insurance

Protect Your Family's Financial Security

Everyone understands the value of life insurance – it provides your family with financial protection in the event of your passing. Yet very few people consider the financial repercussions of recovering from a serious accident or illness. You may be left without regular income and your savings can be depleted.

The good news is that, more than ever, advances in medical science make it possible to survive an injury or illness and resume a meaningful lifestyle.

  • There are over 70,000 heart attacks in Canada each year of which 86% of victims admitted to hospital survive
  • 85% of those who suffer a stroke survive
  • 35% recover completely or with a minor impairment or disability. 50% are left with a moderate to severe impairment
  • About 300,000 Canadians are living with the effects of stroke
  • Over 82% of children with cancer survive at least five years after diagnosis
  • Approximately 850 Canadian children aged 0–14 develop cancer each year
  • Based on 2011 estimates, almost 40% of Canadian women and almost 45% of men will develop cancer during their lifetimes

“Because You Are Going to Live”

Gaining popularity in Canada, critical illness insurance has already proven its worth in the UK, South Africa, South Korea, Australia and the U.S. It was developed by Dr. Marius Barnard, the brother of the first doctor to successfully complete a heart transplant, who recognized the financial burden entailed in the recovery from that procedure. Dr. Barnard’s philosophy is, “You need insurance not because you’re going to die, but because you’re going to live.”

What Can Critical Illness Coverage Do for You?

Critical illness insurance provides a one-time lump sum tax-free cash benefit should an insured individual be diagnosed with and survive 30 days from one of a number of predetermined covered illnesses, including cancer, Parkinson’s or Alzheimer’s disease, or in such events as a heart attack, stroke and/or bypass surgery. The benefit of this type of policy is that it allows you to focus on what will be important to you – a return to health and well-being, without worrying about finances. You can spend the money any way you choose.

Family Protection

Coverage is available for children from birth to age 18. Children’s coverage allows you to obtain the best possible care for your child. It can also allow you to take time off work to be with your child, pay for unique or extraordinary care, hire a caregiver to attend to other children, travel for special care, or for any other reason you choose.

Protecting Your Quality of Life

A life-threatening disease or disorder can be a life-altering event and can dramatically change the quality of life you and your family enjoy today. While medical costs are covered by health insurance, the tax-free benefit of a critical illness policy will help you return to the quality of life you expect and deserve. This benefit may assist in maintaining your independence and dignity.

Adapting Lifestyles

What if a family member or friend had to stop work to care for you during your recovery? What if you had to care for someone else? For most people, the financial option to stay with and care for another person is not without consequence. Critical illness coverage can provide the funds for this to occur. Whether you’re modifying your home to cope with lifestyle changes or paying for an attendant nurse, critical illness insurance can help ease financial pressures when you need it most.

Financial Commitments

Critical illness coverage provides financial safeguards in the event of a loss of income or the depletion of assets that could damage your financial affairs. While you return to health, there is no need to worry about where the money will come from for your continuing financial commitments.

Concerns for your children’s education, the affordability of something for yourself or for others, or debts owed to creditors may be relieved. So may the fear of liquidating your investments and the tax consequences and other effects on your retirement or estate planning.

No Limits to How You Can Use the Benefit

The lump sum benefit may be used at your discretion: you can use it to make modifications to your home to accommodate your condition, pay for prescription drugs or treatments not covered by government or private plans, obtain the best medical treatment domestically or in other parts of the world or enable your spouse to stop working to help care for you. The possibilities are unlimited.

Commonly Covered Critical Illness Conditions

Conditions covered vary by insurer, but ALL insurers cover cancer, heart attack, heart disease and stroke.  Other commonly covered conditions include: Alzheimer’s disease, bacterial meningitis, benign brain tumour, blindness, coma, coronary artery disease (requiring surgery), deafness, heart valve replacement, kidney failure, loss of independent existence, loss of limbs, Loss of speech, major organ transplant recipient or waiting list, multiple sclerosis, ALS or Lou Gehrig’s disease, paralysis, Parkinson’s disease and severe burns

In Summary

Whether your insurance needs are simple or complex, there is a solution for you. An analysis of your situation and determination of your needs will help you implement a strategy that will either protect or grow your assets. But no matter what your needs are, a critical illness plan will always be geared toward achieving one distinct goal – protecting and enhancing your wealth.

The strategies, advice and technical content presented is provided for the general guidance and benefit of our clients, based on information that we believe to be accurate, but we cannot guarantee its accuracy or completeness. This presentation is not intended as nor does it constitute legal or tax advice. Clients should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This will ensure that their own circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change.

Insurance products are offered through RBC Wealth Management Financial Services Inc. (“RBC WM FS”), a subsidiary of RBC Dominion Securities Inc. RBC WM FS is licensed as a financial services firm in the province of Quebec. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member–Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® Registered Trademark of Royal Bank of Canada. Used under licence. © 2013 Royal Bank of Canada. All rights reserved. INSCIM-EN 101509 (04/2013)