Net Net TOUGH-Protect YOUR Savings-Critical Illness Insurance
Course #7 of 9 – You Survived an Illness but Your Savings Didn’t
- Do you hate paying for insurance?
- Have you worked hard to save/accumulate savings?
- Have you sacrificed anything to get your business to a certain level?
Consider the fact you pay for car insurance and when we get in a fender bender we try and pay cash… What if you could get 100% of your money back if you didn’t have an accident. Hmm… Or, we pay $1,000’s of dollars for car insurance and the car is worth – $30,000, $50,000 or $100,000… How much money do you make PER YEAR, times that by 10?
How much do you invest per year to insure your income?
How do you know if your Financial Dashboard/you need Critical Illness Insurance?
- Do you have people that depend on your income?
- Have you accumulated savings that you need/want when you retire?
- Do you have limited savings, you are over age 45 and want to retire/stop running your company around age 60?
- If you were to get critically ill, not be working, would that affect your ability to pay your bills?
- Do you work hard to save money?
- Do you like the idea of insurance protection but hate wasting money?
If you answered YES to one or more of these Contact Us to vet if this protection fits into your Financial Dashboard.
Assuming you do not currently have your savings insured by a Critical Illness policy, or you answered YES to one of the above, outlined below is more detail on how you could protect your plan.
Continuing on the strategy to bullet proofing your income. The second policy mentioned in the previous course (LINK) is Critical Illness protection. The one unique part of this policy type is currently there are policies that will give you 100% of your premiums back if you do not claim after a certain number of years. Simply put, you pay for a policy, should you get an illness or condition defined/outlined in the contract, you collect your lump sum benefit.
What if you didn’t claim? And say 15 years down the road, you cancel the policy? What happens now…?
You can buy Critical Illness protection (CI) in various policy types, but the main ones are term, a 10 or 20 year term policy, meaning you have for example, $100,000 of coverage if you get diagnosed with one of 18 or 24 illnesses (depending on the policy). If that happened then you get paid out your $100,000 and the policy is gone moving forward.
Now the premium is guaranteed to be level for 10 years and then it goes way up in premium at the end of 10 years.
The other kind of policy you can get for critical illness is a 100% refundable plan meaning, you have this policy which has a guaranteed level premium for 15 years. At the end of 15 years if you don’t need the coverage anymore you can cancel it and get 100% of your money back. If you have young children then you could own this policy for say 17 or 18 years then assess at that point if maybe you were wealthy enough that we don’t feel like you need coverage. Assume your kids are going to University, what a great time to cancel your critical illness and get that 100% back of all the premiums you paid and use that money to fund your kids education.