Who Is Looking After The Kids?

With an increase of 23% in the rate of childhood cancer over the past five years, it very clear that parents need to protect themselves against the financial impact of a child being inflicted with  a critical illness.

Parents need to consider such things as:

• which parent will take time off work to tend to the child’s needs?
• how will the family cope with the loss of a parent’s income?
• how will the family finance the cost of care, either in or outside of Canada?
• where will the money come from ……savings, RRSPs, loans, etc.

By being proactive, a parent can offset a financial hardship for a relatively low cost. Most CI policies for children have rates that are guaranteed throughout the life of the contract. By starting the policy at an early age, the child will benefit later in live from the low premiums and having to qualify medically for a CI policy. By paying the premiums on the policy and owning the policy, parents can control the expense of protection until the child has completed school and left home.

In fact, if you purchase a Critical Illness policy with return of premium (ROP), you can transfer the ownership of the policy to the child after age 35 with the ROP premiums being transferred as well…… tax free. Either you or the adult child can decide whether or not to continue the coverage or use the ROP for such things as a down payment on a house, etc.

Remember……you will be taking care of the kids well into their adult lives…..so why not be pro-active and protect yourself financially.

Learn more about Critical Illness insurance or contact Barrons for a no obligation consultation or quote.