Getting your money back if you don’t experience a Critical Illness, seems too good to be true!

Let’s take a closer look at the lure of “return of premium” and how it may work for you…

For many of us, the idea of experiencing a critical illness is far removed. We go along year to year until that day when our world changes forever. The high incidents of Cancer, Heart Attacks and Stroke speak for themselves.

To help alleviate the financial risk associated with illness, the Canadian insurance industry has responded with several innovative solutions. Expectedly, this has led to more indecisiveness as comparing policies is becoming more difficult. One such area where there is a need for clarity is the “return of premium” provision available on Critical Illness insurance policies.

Critical Illness insurance provides for a core or basic benefit to be paid if you are diagnosed with one of approximately 24 and survive a minimum of 30 days. This benefit is paid lump sum and tax free, and can be used as you see fit.

But what if you don’t get sick? Without adding a “return of premium” rider to your CI policy, your policy will act similar to a car insurance policy…..no money back if you don’t have a claim.

The “return of premium” provision or rider available on most Critical Illness contracts is an extra charge or investment in the possibility that you won’t get sick.

With Critical Illness insurance, the insurance company guarantees 100%, the return of eligible premiums at the cancellation or expiry of your contract.

Consider these examples…

Male age 40 non smoker
Contract face amount $100,000 - Level to age 75
Return of Premium (ROP) at surrender anytime after 15 years
*Base annual premium includes ROP at death anytime
                       
Base Annual Premium      ROP Charge      Rate of Return on the ROP Charge
    $1,217.00                        $548.00                           13.63%

Female age 40 non smoker
Contract face amount $100,000 - Level to age 75
ROP at surrender anytime after 15 years
*Base annual premium includes ROP at death anytime
                       
Base Annual Premium      ROP Charge      Rate of Return on the ROP Charge
  $1067.00                            $581.00                          12.21%

While your core or basic benefit remains the same if you include ROP as part of your Critical Illness policy, you will enjoy the added security of knowing that a full 100% money back guarantee is waiting for you down the road. This extra investment in your future out performs most investments in the market place.

At Barrons, we wish long life and great health for all. We also want our clients to fully understand that by investing in themselves (by adding the ROP rider to their contracts); they can actually take financial advantage of their insurance policies in ways never imagined before.

To find out more about Critical Illness insurance, or to arrange a no obligation appointment with a Barrons associate contact us now.

This example is for illustration purposes only, while every attempt has been made to ensure the accuracy of this information Barrons or its affiliated companies cannot be held liable for errors or omissions. Actual numbers at time of illustration may vary.