Video: Critical illness: managing the risk
Just like investing, health insurance is based on effective risk management.
But there is one big difference: for investing, higher risk usually means a higher potential return. With health risks, there is no positive trade-off: you are simply exposed to serious consequences.
Here are a few examples of such risks.
According to the Canadian Cancer Society, nearly one in two Canadians will develop cancer in their lifetime. Every day, 617 Canadians, on average, are diagnosed with cancer.
According to the Heart and Stroke Foundation, nine out of 10 Canadians have at least one risk factor for heart conditions, stroke or vascular cognitive impairment.
The Public Health Agency of Canada reports that the risk of being diagnosed with dementia doubles every 5 years after you reach age 65.
Fortunately, these diagnoses are not necessarily terminal. Even so, they can force you to stop working, seek specialized care, or become dependent on your loved ones, who may also find their lives turned upside-down.
Critical illness insurance is a tool that may help manage the financial and personal consequences of these types of risks. It can provide coverage in the form of lump-sum payments and, in some cases, professional services.
To find out more, talk to your financial security advisor.
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