Stacey: Although it’s been around for less than a decade, critical illness insurance for children is already established as an innovative tool to help parents provide a solid, lifelong financial foundation for their children. Yet despite its many benefits, it’s not well-known to Canadians. Here to tell us why every Canadian child should have this solid financial head start is insurance professional; Reh Bhanji. Thank you so much for joining us today. Now why is it important for parents to know about this type of insurance?
Reh: You know as a parent myself often times we take a look at some basic financial planning and savings vehicles for children. Simple things such as, savings accounts, Canada savings bonds and even a Registered Education Savings Plan are all fundamental sound financial planning tools that we use. Having said that one of the most important things to protect those assets is a critical illness insurance policy for children.
Stacey: But why insure a child? Wouldn’t you wait until they’re may be an adult?
Reh: Often times we take a look at insurability. And what I mean by that is that as we age one of the biggest factors that we do face is getting the coverage when it’s actually affordable at the same time making sure that we qualify. Things such as, smoking status, lifestyle, high cholesterol and even family history come into play when we’re trying to insure an adult. Often times when you’re young not only the premiums are affordable but at the same time the qualification is much more easier.
Stacey: So what is the right age to get this kind of coverage?
Reh: It may sound like a cliché, but it’s never too early to start. The plan starts as 30 days old and goes up to the age of 17 in terms of the eligibility for the coverage. When we take a look at the options one of the features is a 20 pay option. Meaning, the client would only pay the premiums for 20 years and after the 20 years the plan would be fully paid up and the child would have that protection for the rest of their life.
Stacey: It sounds like a great idea, but I know a lot of expectant mothers and of course parents out there who have a lot to deal with in the first few months, shouldn’t they wait may be 6 months or even a year?
Reh: And I can totally understand. You know it reminds me of my friend who recently had a baby and luckily he was able to protect this - his child when she was born. And in doing so what had happened about 5 months later was unfortunately his mom was diagnosed with breast cancer.
Stacey: So sorry to hear that.
Reh: Thank you very much she’s recovering quite nicely. With my friend’s family history, had he waited, his daughter wouldn’t have qualified for the coverage. Insurance for a baby? I’m surprised there’s such a thing. I know it may sound odd, that’s for sure, but when we take a look at life insurance we look at insuring a child not only because the premiums are cheap but often times we want to make sure that they qualify for the coverage. As I mentioned before, lifestyle, health issues do hinder the qualification for this type of insurance and we call that “insuring insurability”.
Stacey: Well, what’s distinct about the coverage for children?
Reh: Well, first and foremost it pays you a tax free lump sum benefit in the event of a diagnosis of a critical illness such as a heart attack, stroke or cancer. Some of the specific unique coverage’s that are offered for a children are things like autism, cystic fibrosis, muscular dystrophy and even type 1 diabetes. Now, we may not want to think about this but knowing that there is a critical illness policy in place to make sure that they are covered is extremely important asset for their lifetime.
Stacey: Now if our viewers want to find out more critical illness insurance for children what should they do?
Reh: Well, the best thing is to start with good advice and to speak to an insurance professional that can provide you with that advice. Taking a look at your options. Taking a look at the features and benefit. All the more reason why to take a look at talking to an insurance professional.
Stacey: Well, thank you for joining us today, Reh!
Reh: My pleasure.