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Financial Planning
Critical Illness Insurance

Coming back across to Comox
Coming back across to Comox
Critical illness insurance was invented by heart surgeon Dr. Marius Barnard, and first introduced in South Africa in 1983. It was first offered to Canadians in 1996.

The financial consequences of a serious illness are often worse than those of death. In addition, the chances of a critical illness incident for any of us are much higher than those of death, at least before retirement.


Critical illness insurance is a kind of 'living benefit' protection. It pays a lump sum a certain number of days after the diagnosis of one of the carefully circumscribed conditions that make up the majority of life threatening illnesses. This waiting period is usually 30 days. It does not pay if the insured dies during this period.
Cathedral Grove, it's green because it rains a lot
Cathedral Grove, it's green because it rains a lot
The Dinghy Dock
The Dinghy Dock
a floating pub
Critical illness insurance is a really neat way of protecting an RRSP. If someone is diagnosed with a critical illness and needs a large lump sum of money in order to get crucial treatment, the choices are to get a loan, remortgage the home or cash out all or part of the RRSP.

Critical illness insurance pays out when it is needed and means no extra loan or mortgage and no extra taxes on cashing out the RRSP. I often recommend redirecting 10-25% of the monthly payments into an RRSP into a critical illness contract.
Gill, Chris and Kayla