What is Critical Illness and why get it? Interview with Shawn Hughes, RVP at Foresters Financial

What is Critical Illness and why get it?  Interview with Shawn Hughes, RVP at Foresters Financial


Thanks for being with me today today another
special day really appreciate it I have Sean Hughes regional vice president of Foresters Financial. Sean thank you again for being with me today thank you so much my
pleasure thanks for having me again that’s good so Sean if you want to refer
to another video we did interview on life insurance today we’re gonna talk
about critical illness also known as CI
in the insurance industry and what I found is when it comes to critical
illness obviously it’s a product it’s an insurance product but a lot of people
understand life insurance but then when we talked about critical illness they say
what is that? they don’t know so just help us understand what is critical
illness well. critical illness is an effective insurance strategy that one
can deploy to really look at the main concept of insuring your paycheck. okay.
so when you look at your most important asset in your overall portfolio a lot of
people may come back and say well it’s my house. true, that’s a valuable asset
but the most important asset in your overall portfolio is your ability to
earn an income. okay and in regards to providing a lump
sum tax free payment in the event of a critical illness this can effectively
ensure that you know what you can make ends meet yeah month the month of if you
happen to be become critically ill okay that’s good so why would why would a
person want to consider getting critical illness for themselves? I would just let
the stats speak for themselves and again when we relate it back
to insuring your paycheck concept. yeah. three out of 10 individuals prior to the
age of 65 are going to be stricken with a critical illness. okay pretty
staggering stats. well it is and because when you think about that many people
before the age of 65 that is pretty significant. can you give us some
examples of of of a critical illness? most definitely so I’m going to give you
three examples because they seem to be the most common in the Canadian
marketplace. The first is heart attacks. so I’ll share
some interesting stats on heart attacks. So we have about seventy thousand
Canadians suffering a heart attack each year. One in two actually of these
heart attack victims are under the age of 65. okay. but the good news story
is that 80% of these people actually survived their first heart attack. so how
will they continue to earn an income and that’s what insurance critical illness
insurance is important. the second is cancer, pretty staggering numbers
going back to 2015 about 200,000 of new cases of cancer occurred back in 2015
again a very high relevant type of number sixty percent of these cases
occur in people under the age of 70 and that’s why it’s important to have
that insurance strategy in place and on average the breakdown is about 72% of males and 77% of females who develop cancer and again
with our technology these people will survive which is up which is good news
well last is the stroke okay you probably hear a lot of advertisements
about stroke but again 50,000 Canadians suffer a stroke each year okay
and one of these one in three of these stroke victims are under the age of 65 and again survival rate because of our advanced our medical system is that
75% which is which is nice well that’s good and if someone were to
have that and they were they were protected with a critical illness policy
they would get money tax-free when they’re off trying to win the battle
against these illnesses. most definitely and what happens is if you don’t have an
effective CI strategy in place what I find is a lot of people will dip into their assets yeah and one are the assets they’re going to touch first
is their RRSP and you know when you touch your RRSP there’s tax
withholding taxes on making that withdrawal absolutely and then of course
you have to report that income on your income tax which puts you substantially
into in a higher tax record so it’s not the most tax-efficient way to make sure
that your critical illness is covered and that’s why I said critical illness and insuring your paycheck is this extremely important that’s good
and you know I just mentioned for the viewers here Foresters Financial they’re
unique insurance company and I have access to many of them and they have a
they have special additional member benefit and they were mentioning you
want to refer to them on the life insurance interview we did with Sean but
there’s some that are financial and there are some that are fun that’s right
now with the critical illness there’s an additional one right it’s called
advanced medical can you help us understand? so this is just an
additional feature based on that insurance strategy that you can
implement and if you think of advanced medical think of is your own private
health care practitioner yeah so if the insured and or their family member could
be their spouse and their kids need to speak to a professional about any health
related illnesses yeah advanced medical it’s a nice little feature that you can
again tap into if you need to which is nice. that’s great. listen Sean really
appreciate you being with me today very valuable information for our viewers and
thank you so much again for being with me today and for those listening listen
feel free to subscribe for more information like this and and click the
bell for notifications thank you so much for being with us today if you have any
questions about life insurance or critical illness please my contact
information below reach out to me have a great day

3 comments on “What is Critical Illness and why get it? Interview with Shawn Hughes, RVP at Foresters Financial

  1. Please order a copy of my book at any of the following places at my website: https://www.markalbertfinancialadvisor.ca/author

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