Chronicle | Insure the baby … to take care of him

Reading the stories behind the crowdfunding campaign to help the families of sick children is always heartbreaking. Cancer, Cerebral Palsy, Cystic Fibrosis … Parents are worried, they are holding on to their lives and their financial situation is uncertain. What is the solution to serious illness insurance?

Posted at 6:30 am

Unfortunately, it is not true that this only happens to others. Others can be us. Parents of critically ill children can prove it.

And despite our universal healthcare system, there are many costs involved in diagnosing cancer. Parents must be absent from work in order to be by their child’s bedside, they are no exception: lost wages, transportation, parking, food in the canteen, work to adapt the wheelchair to the home, Reggie de Quebec is not covered by health insurance (RAMQ). Perhaps they will need domestic help, to clean, to feed, to look after other children.

Antoine Agar, financial planner at IG Wealth Management, argues that there is an affordable way to avoid financial turmoil due to a serious illness. You can insure your child against serious illness, an option that parents often do not consider or they voluntarily cancel.

Screenshot from the GOFUNDME website

Crowdfunding sites like GoFundMe come up with a number of campaigns to help families of sick children.

“A lot of people say that paying for this type of insurance is about acknowledging that it can happen that their child is sick. As if it has brought misfortune. Others think the insurance companies are a scam, “observes Antoine Agar.

I don’t know if life insurance holders die at a young age, but I can understand the distrust of insurers. We have all heard the story of endless struggle to get payment. In order not to be discouraged and confident, “the most important thing is to understand this kind of policy”, insisted Jeffrey Morrow, financial security adviser at Desjardins, while confirming that his employer “pays a lot of checks”. The Autorité des marchés Financiers (AMF) also recommended in 2021 that insurers interpret the product better, which is often misunderstood in Quebec.

All you need to know is a predefined list of illnesses, where injuries are sometimes added (severe burns, damage to a limb), covered.

In Desjardins, for example, there are 29 conditions in the list and it is possible to add more as an alternative. Canada Life, though different, covers almost the same number. The goal is not to cover the orphan disease, being thrown a wide net. Too bad, because they cost too much. For cancer, it must be “life-threatening,” which excludes “malignant melanoma skin cancer,” for example. What causes these fights? Not really, because the contracts are detailed, I have been told.

Important information: Insurance does not cover expenses incurred due to illness. During a diagnosis, a non-taxable amount is paid at once (with some exceptions). It can be used as a parent’s wish.

Like life insurance, serious illness insurance can be permanent or term, a more affordable option. That way, you can insure your child for 10, 18 or 25 years, for example: “90% of the insurance I sell to my clients is temporary. It’s cheap and it works. ! “It simply came to our notice then.

When the budget is an issue, he recommends choosing a shorter duration, but large enough to make a significant impact. Because the goal of the police is to reduce the financial pressure in a difficult time.

Instead of taking out permanent insurance for a small $ 25,000 or $ 50,000, I prefer that my clients take out term insurance for a larger amount.

Antoine Agar, Financial Planner at IG Wealth Management

“What’s the difference? I think 1 million in a bank account allows you to deal with your new reality better than $ 25,000,” the financial planner explained.

In Desjardins, “Health Priority – Children” insurance is mandatory. Cooperatives do not provide any temporary protection.

Advantages of this type of font: It can be virtually free. We pay for it for 20 years, and if it is not used, we will be paid for all the premiums paid. In reality, we only deprive ourselves of the return that would have come if we had invested money.

A child who has become an adult can also choose to have insurance for the rest of his life. In this case, he will not be compensated, but he will be overwhelmed without paying a penny. The policy may be effective because it covers diseases including dementia, Alzheimer’s disease and Parkinson’s. The heirs will benefit from the return of the premium on death, if no claim is made.

Before taking out permanent insurance for a child, Antoine Agar believes that you must “make the most of your RESP, RRSP and TFSA and have no debt”. Because the premium gap is more understandable to invest elsewhere. As always, it’s important to consult an expert to evaluate your needs, compare policies and calculate.

One thing is for sure, in any case, the ideal is to pay your insurance without ever claiming …

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