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Oct. 6, 2006
Making life choices
Having insurance in place makes things easier.
EDITH STEVENSON
When you think of insurance, most people think immediately of life
insurance, house insurance or car insurance. Think for a moment
of the people you've known. How many died before age 65? How many
have lost their home to fire? How many have had their car totalled
beyond repair?
Now think about your ability just to function – whether we
earn an income or are among those (such as stay-at-home moms or
retired folks) not working at a job, we want to enjoy a certain
quality of life.
Fortunately, the medical profession is doing a great job to ensure
there are now fewer deaths than in the past from cancer, heart disease,
strokes and serious injuries. Often, the bottom line for achieving
the quality of life we want is having choices.
Consider this: you've enjoyed a good life for 50 or 60 years and
are looking forward to retirement. Now, think about the things you
take for granted in your day: you get up, get dressed, eat your
breakfast.
What would you do if you were suddenly unable to do these basic
tasks of daily living? Would you like to stay in your home and be
able to pay for care above and beyond what the government may provide?
When your grown son or daughter comes over, would you want to just
visit with them, or have them give you a bath or get you dressed?
Could your spouse lift you out of bed or take you to the toilet?
While you are recovering from a broken hip, for example, you will
need 24-hour care, for several months, to do these basic things.
Long-term care insurance will pay you cash when you are unable to
perform any two of the basic tasks of daily living: bathing, feeding,
using the toilet, dressing and getting up from a bed or chair. It
is up to you how you use the funds – no approvals or submissions
of receipts are required.
Another type of insurance, rapidly gaining appreciation in North
America in the last 10 years, is critical illness insurance (CII).
It also pays you cash when you get sick, but as a lump sum, to use
however you wish, towards alternative treatment, recovery adjustment
costs, travel or even needed renovations to your home.
The statistics speak loudly for this important kind of insurance.
In 2006, 153,100 people in Canada will be diagnosed with cancer,
50,000 will have a stroke and 75,000 will have a heart attack. Fortunately,
60-80 per cent of all these will survive the diagnosis. But what
is the reality for those who did go on to celebrate more birthdays?
Would having an extra $30,000-$40,000 in their back pocket have
helped? Consider what choices the following people had in dealing
with their illness.
Roger, 44, was a self-employed engineer with a busy practice and
a working spouse. When his cancer was diagnosed, he worked 50 per
cent of the time to keep his business going. That meant he was only
working 35 hours, instead of 70. He was tired all the time from
chemotherapy treatments, so his wife took time off from her job
to drive him to work sites around the province. He would fall asleep
in the car within minutes. She sat with him for four hours every
two weeks, while the magical but poisonous cocktail was dripped
into his body. The anti-nausea pills cost hundreds of dollars. Fortunately,
the oncologist's promise of recovery came true – but financially,
the couple struggled to hold everything together during this difficult
time. There was no critical illness insurance in place.
Melissa's diagnosis of ovarian cancer was, sadly, not of a curable
type. But the $60,000 she received in CII funds allowed her husband
to take a year off to care for her. They also travelled to China
for a long overdue reunion with extended family she had not seen
in many years. Her insurance funds made the trip possible.
Denise, 36, was told she had multiple sclerosis. In time, she would
need a walker, then a wheelchair, to get around. Her home would
need to be adapted for her disability, as would the family mini-van.
The B.C. Medical Services Plan will pay for a motorized wheelchair,
but not for the retrofit to one's home or car, to get the heavy
chair inside.
Having extra money when you get sick can give you choices. It is
up to you how you use it: go for faster treatment in the United
States, take a holiday to Mexico, hire extra help for your home
or your business. The point is to help you get on with life.
Edith Stevenson is a senior life and health insurance
advisor with Clarica Financial Services Inc. in Vancouver.
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