29 Sep Financial Security During an Illness: How to Protect Yourself and Your Loved Ones
Insurance can seem like a daunting topic, but bear with us – this information is critical
by Ali Forster
Ali is Memory Ball’s Director of Finance and Operations. She is a financial advisor at a boutique firm in midtown Toronto, working with clients to achieve their financial goals and ensure overall financial health. She is FPSC Level 1™ Certified in Financial Planning for the Certified Financial Planner (CFP®) designation. Check out her new blog at fitnance.ca .
Over the past three years I have learned a lot about Alzheimer’s disease because of the awareness raised by Young People Against Alzheimer’s (YPAA) and Memory Ball. When a family member is diagnosed with Alzheimer’s disease, the emotional burden is immense. Combining that with the financial worry can be simply overwhelming. Not only is there a loss of income but there is also an added strain to the budget, for a variety of costs.
What if I told you there was a way to protect yourself, and in turn protect your family from the financial burden of being diagnosed with an illness? You may say, “I have an emergency fund” or “a savings account”; but think about the amount you have saved, would it cover your expenses for a month? A year?… A decade?
Promise you will stick with me?
Insurance… still with me?
I find insurance to be a term that typically makes people shift in their seat and try to change topic. But hear me out… You insure you car, home, and jewelry… why not your most important asset: YOU.
Now, I am not speaking of life insurance or even disability insurance. I am referring to Critical Illness Insurance.
Critical Illness Insurance – The Basics
If you are diagnosed with 1 of 25 illnesses and survive 30 days, you will receive a tax-free lump sum payout.* Phew, that was a mouthful. The key word for me is: survive. This insurance is to help you fight by easing the financial costs of being diagnosed with one of several critical illnesses including: Alzheimer’s disease, Cancer, Parkinson’s disease and Multiple Sclerosis.
With these funds you can do whatever you want. You can pay for care giving, facility care, medication not covered by OHIP or… a trip to the Bahamas! There are even polices in which you can get your money back if you do not become ill within a set time frame.
When you are young and healthy, it is the perfect time to plan and protect your financial future. Having a spouse and/ or children, it’s easy to know who you are protecting. If you are single, who would help you financially if you got sick? I am thinking most likely your parents, grandparents or even close friends. By creating a solid financial plan for yourself, you also protecting those you love the most.
*Contracts vary based on the insurance provider
Find out more about what to expect with an Alzheimer’s Disease diagnosis. Check out our video “She taught me to Read”