Are you a risk taker? Gambling on the unpredictable future

If there was a 50% probability you or your spouse pass away, have a heart attack, or become disabled before age 65, what is the first thought that comes to mind?

A common reaction is to consider there is only a 50% chance of that happening, and you will take that chance.


What if the chances increased to 100 % that you will get critically ill in your lifetime? What would you tell the younger self then? Are you still a risk-taker or do you have another source of income to pay bills if you could not work? These are important questions to reflect on.


Today, I want to share with you why I got critical illness protection and why it may apply to you.


Life is unpredictable and the chances of getting a critical illness are unknown. Most importantly the timing is never right; you may have just bought a home or just had a baby before being told you will not be around for the plans you made. Would you still consider yourself a risk-taker and gambling on your family's financial welfare? There are emotional and physical hardships of critical illness and by getting the protection you need, you ensure you are not taking risks on what matters to you.


Here are some immediate benefits of why I purchased Critical Illness Protection:


  1. First and most importantly it provides a lump sum tax-free benefit. You can choose how you want to use the benefit with no tax consequences. This can be used to offset treatments not covered by OHIP ( Ontario Health Insurance Plan), and become a source of income as you or your partner easy back to work, pay debts, hire additional childcare, and access available funds without touching your savings or taking on debt.

  2. If you do not have a claim by a given age, you can get your money back. That’s right, you can consider the premiums as a contribution to a savings account to treat their family to a vacation in the future.

The following chart below shows data on the risk of critical illness compared to death before age 75. What I find interesting is that most people think only about life insurance, when the chart shows a higher risk of critical illness. Many of us rely on a regular income to pay for groceries, credit payments and retirement savings.

Source: Manulife. Munich Re using National health and mortality data based on 22 conditions covered by Lifecheque, November 2007

If you were not able to work for a year, how would your family be affected?


Why take the risk when you can be protected and have that peace of mind? I did not want to take that risk. It’s not easy or comfortable to imagine receiving a critical-illness diagnosis, but it’s a reality for many Canadians at some point in their life. Critical illness coverage is one way to reduce stress around this kind of life-changing event and ensures you’re better prepared.


Reach out to learn more about the features and benefits of Critical Illness at theteam@waverleywealth.ca .


1 Manulife. Munich Re using National health and mortality data based on 22 conditions covered by Lifecheque, November 2007


2 https://www.moneysense.ca/spend/insurance/life-insurance/critical-illness-insurance/


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