Despite the 50/50 odds that clients have of getting cancer at some point in their lives, the majority of clients with children lack critical illness insurance protection, suggests a recent poll conducted by Toronto-based TD Insurance Co.
Of the 1,000 Canadians polled in the TD Insurance 2011 State of Insurance Report, 65% of those surveyed who have children did not have CI insurance.
CI insurance provides clients with a lump-sum payout in the case of a life-altering illness. Most basic CI policies cover conditions such as heart attacks or strokes; more extensive policies can cover up to 24 types of illnesses, from blindness to multiple sclerosis. CI coverage usually ranges between $20,000 and $2 million.
As most households now have two income-earners, clients with children and who lack CI coverage are most vulnerable, says Dave Minor, vice president of TD Insurance: “A lot of families depend on every dollar both income-earners bring in. A loss of one of those incomes due to an illness can be a big financial risk, especially if the family has major debts.”
Lack of awareness, says Minor, is the main reason clients don’t have any CI protection.
Similarly, Lévis, Que.-based Desjardins Financial Security found in its 2011 Health Survey that only 29% of the women surveyed believed they could adapt to the loss of income if a spouse needed to take time off work due to a critical illness. That survey polled 2,115 Canadians.
Rather than warning clients about the likelihood of getting sick, you should make the CI conversation one about “choice,” says Nathalie Tremblay, health products manager, individual insurance, with DFS: “With CI, clients and their families aren’t constrained financially when deciding how to cope with an illness. They can choose to spend the money on a family vacation, medical treatments or financial debts.” IE