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Hedge Your Investments

It only costs a little to save a lot…Don’t Borrow From Your Future

Saving for retirement takes planning, discipline and of course, money. What would happen to you if you suffered a heart attack, had a stroke, or were diagnosed with cancer? Where would you turn for the extra money you would need to help cover related expenses?

If you are like many Canadians, the first place you would go would be your RRSP or savings account, putting your retirement and future lifestyle in jeopardy.

Did you know, Canadians have a greater chance of having at least one occurrence of heart attack or stroke, or being diagnosed with cancer than dying before the age of 75*?

You could help protect yourself from having to jeopardize the future of your retirement when struck with a critical illness. With critical illness insurance you could receive a lump-sum benefit which usually becomes payable 30 days after the diagnosis of any one of the insured conditions. It’s money that could help you to save your life and your retirement.

If you stay healthy, you can still win with critical illness insurance. The return of premium options available on most policies give you the freedom to decide whether to keep your coverage or receive a portion of the eligible premium paid for your policy back. The lump-sum premium payback benefit can be used whichever way you choose, from taking a trip to topping up your retirement savings.

In the example below we are demonstrating the impact of a critical illness on your retirement and future financial lifestyle. For a small annual premium, we can help to avoid an over 40% reduction in available retirement assets.

Let’s review the example…

  • Our case examines a male age 40, non smoker
  • We assumed a regular annual investment of $12,000
  • Investment rate of return is 7% for the life of the example
  • After 15 years there is a critical illness event and the need for $100,000

What results is as follows…

  • If the male had lived it to age 65 with no claim he would have accumulated $812,118.
  • Unfortunately, in our example he has a critical illness in 15 years and needs $100,000.  This reduces his available assets at age 65 to $492,838 which is over a 40% reduction.
  • Had the critical illness insurance been purchased at the modest cost of $1,506 per year, there would still be $710,197 available at age 65. This is a mere reduction of only 12.5%.
  • In addition to the $710,197, the male would also have the option should he stay healthy through to age 65 and not experience a critical illness, of collecting the return of premiums. This would amount to an additional $37,650…bringing our total at age 65 up to $747,847.
  • The modest reduction of 8% in total assets at age 65 amounts to far less cost then the over 40% reduction that would happen in the event of an illness.

Critical Illness insurance is a fantastic way to “Hedge Your Investments” and guarantee you the financial future you have worked towards. 

To make sure that your investments are safe for the future, contact Barrons today and “Protect What Matters Most”.

This example is for illustration purposes only, while every attempt has been made to ensure the accuracy of this information Barrons or its affiliated companies cannot be held liable for errors or omissions. Actual numbers at time of illustration may vary.