Category: Life Annuities
Do you need critical illness insurance? It can be hard to imagine yourself in a position where you might need to file a critical illness insurance claim; however, it is important to note that the most important thing to prepare for is not the possibility of being affected by a critical illness, but the emotional, physical, and financial costs of surviving that illness. Living with and even beyond a critical illness is challenging and costly. Your recovery may leave you with the cost of healthcare services, prescribed drugs and supplements, home care costs, costs of renovations or modifications to the home for new accessibility needs, childcare, and other expenses that may not be covered by your government health insurance plan. You may have to travel to get the medication or treatment you need, or you may simply need to travel to get into climate conditions that are more suitable to your psychological, emotional, or even physical healing. On top of all this, you have your regular household bills plus the potential disruption to your ability to work. The financial implications of a serious illness add up quickly.
Despite all of these probabilities, many people – Canadians especially – underestimate the financial impact a critical illness can cause. Why is it so common for Canadians to overlook their need for critical illness insurance? Well, we have free healthcare, right? So why should we need to invest more money in the financial securities we already have in place? The truth of the matter is that our healthcare doesn’t cover all of the expenses a critical illness can cause us to accumulate and the coverage it does provide may not arrive quickly enough if you are left sitting on the waiting list too long.
Let’s take a look at an example: imagine you’ve just been called into the doctor’s office. Your last test revealed that you have cancer and you need chemo therapy right away. In Ontario, your wait time to start retrieving treatment is four weeks or you could go to Buffalo and start treatment there tomorrow, but it will cost you $40,000. Critical illness insurance could help you pay that expense, and perhaps even the travel costs of getting to Buffalo for your treatment.
But that isn’t all. As we’ve already pointed out, your illness comes with other financial implications-like your sudden inability to work. All of a sudden, your day-to-day living expenses have become a lot more stressful, and all of this is compounded by the fact that your partner is also taking time off work to take you to medical appointments. Those bills are going to start to pile up, and even after you’ve been given a clean bill of health, you still need time to physically recover from your treatments (as well as from the overall psychological and emotional trauma). You aren’t going to want to rush right back to work to start tackling those bills.
Cancer isn’t the only illness that can have this impact. Critical illnesses like heart disease, diabetes, stroke, epilepsy, etc. have an equally severe physical, psychological, and financial impact.
How realistic is it to rely on alternative options?
Many people feel they can rely on their spouses, retirement savings, sale of assets, or government assistance in the event that they find themselves in need, but you don’t want to be left in a position where you have to hope that these options come through for you in a timely enough manner. In most cases, it just isn’t realistic to rely on these options. Plus, critical illness insurance provides you with additional benefits, like:
- Providing coverage for expenses that aren’t covered by our healthcare system: Critical illness insurance can help offset some of the costs of certain drug prescriptions or other treatments that you would otherwise have to pay for out-of-pocket.
- Protecting your retirement: You don’t want to eat into your retirement savings to accommodate the costs of your illness-those savings have their own purpose, and you don’t want to sacrifice your future lifestyle or your ability to retire when you want. Critical illness insurance offers the financial relief you need to prevent the necessity of dipping into those savings so you can keep your retirement plans on track.
Additionally, critical illness insurance is designed to:
- Reduce debt and other financial concerns while you cope with your illness
- Replace reduced or lost income for you and your spouse
- Cover the costs of bringing additional help into the home
- Provide you with the opportunity and ability to consider new medical treatments and medications that are not covered by private or government health insurance plans.
Life is full of uncertainties and we can never know what life has planned for tomorrow. And students are no different in that. Even if you are a student that doesn’t mean that you are immune from the unwanted events of life. Life insurance policies protect you and your loved ones against the uncertainty of life. In case of an unfortunate event, the insurance provider helps with a lump sum amount of money helping the family to take care of financial debts and other responsibilities. Losing a child can be a heart-breaking experience for any parent and accumulated cash amount can be very helpful in such situations. Parents or loved ones may utilize this amount to help them to take care of funeral expenses, pending personal or education loans and other essential expenses. In this article, we are going to explain what is the importance of a life insurance for students and the benefits offered by various insurance providers.
Life Insurance Options for Students
Insurance providers are coming up with advantageous life insurance policies for different types of customers and students are no different. Usually, students are more into enjoying their college time than thinking of protection from unfortunate incidents. For once, it may seem irrelevant to the students, but if you go into the details, you will find life insurance is a smart buy. However, most people don’t realize the need in the early stages of their life and hence can’t buy one for them. Such policies are providing the students a useful way to take care of their study and other essential expenses.
There are multiple companies offering life insurance plans at affordable rates online. You are just requested to fill an online for the official website of insurance providers or on an insurance portal with multiple providers. Insurance representatives from different companies will reach you with top insurance quotes as per your requirement. They will patiently listen to your queries, explain all the available plan clearly and suggest the most suitable for you. Comparing the different plans for their coverage and benefits, you can choose a plan offering the maximum coverage for the best price. Also, students are considered to have a longer life-expectancy than some older buyer and are expected to live longer. Hence, insurance policies offer a cheaper insurance plan to attract younger buyers. If you are unmarried along with being a student and make you mind buying a life insurance plan, you may qualify some great discount of your insurance plan and get a premium quite cheaper than someone who is married or is working with a firm. Moreover, if you buy a life insurance plan in early stage of life, you can help your parents take a breath if relief as they won’t have to think much about the uncertainty of future.
Reasons to buy a life insurance plan for students
There are several reasons that may compel a student to a buy a life insurance for themselves. Here are a few of them:
The Study Loan
This is one of the major reasons for students to buy a cheap life insurance policy for them. Almost every college student in the United States needs to take care of their educational and other essential expenses such the cost of lodging, food, and transportation themselves. They had to go for an education loan to pay their tuition fees that they will require repaying once the course is completed. There are two types of loans provided to students: Federal Study Loans and Private Study Loans. Federal study loans that are provided by federal Govt. waive off the loans if the insured dies before repaying the debt. But that not the case with private study loans. Generally, private loans are provided with a co-signer and if the insured dies without repaying the full amount, the co-signer will have to repay the balance. In cases, there is no co-signer, the debts are paid by selling a portion of estates named to the insured. Having a right insurance in place can help you avoid such consequences and secure you co-signer as well.
Parents with Debts
Most often, when the students graduate, their parents will have their own debts that they might have taken to make the college education possible. The study loan alone will cost $30,000 on average and there are additional debts such as home equity lines of credit, credit card debt, 401(k) loans or mortgage debts that aren’t be waived off upon the death of the borrower. In case they die before repaying the debt, this may create a trouble for the parents who are grieving the loss of their child. Grieving parents may have their own debts and financial responsibilities, and this may add an additional financial burden to them.
In such cases, insurance companies provide a lump sum death benefit to the parents that greatly helps to take care of pending financial debts of their deceased child. Hence, it’s always a good idea to buy an insurance in your college only. Just by filling a form on their websites, you can get multiple life insurance quotes online and choose a preferred insurance policy for you as well as your family. If you are in a dilemma, you can get the help experts from different insurance companies that will provide the life insurance policy details for each clearly and help you decide the most suitable insurance plan for you.
Expenses of Young Marriage and New Parents
You may not believe it at first, but a large number of students get married and have kids while there are in college. According to the National Center for Education Statistics, around 20 percent of undergraduate students are married, and more than 25 percent of undergraduate students are taking care of their kids while going to college. Losing a spouse at this age can be disheartening and the pending study loan can put an additional burden on the surviving spouse. Having a life insurance will provide an accumulated cash amount that will help the surviving spouse take care of pending financial debts, funeral expenses and help to raise the kids as well.
Care of Older Parents
For the students, who are youngest in their family or are born in later years will have an older parent by the time they will graduate. They may or may not have a full-time to take care of the family expenses and might be partly or fully dependent on their child as well. If they lose their child at such age, this can be heart-breaking for the parents and the additional burden of paying the pending financial debts may make the things worse. If the students would have a life insurance in place, this would help their parent to repay the financial debts as taking care of other essential expenses.