Critical illness is not something we like to talk about. It is however an element of risk that must at least be considered. The reality is that more than half of all people living with cancer will survive at lest five years after diagnosis, while 75% of stroke victims and 80% of heart attack victims, who are admitted to a hospital, will survive. Our chances of surviving a critical illness such as those mentioned are much greater today than ever before.

The fact remains that survival can be expensive. Many life insurance companies now offer a policy that pays out on survival, rather than on death. This type of insurance is generically known as a "Critical Illness" insurance policy. It pays a tax-free lump sum benefit in the vent of a covered critical illness being diagnosed.

In recent years we have had our faith shaken in our government subsidized health care system. The system has undergone many changes and continues to be in a state of flux. There are many expenses that are not currently covered by government, and private health care plans. Often viable treatments will take years of testing prior to receiving approval from the government.

Consider a scenario. At the age of 39, Becky was a mother and full time worker. She had purchased a critical illness policy only months before tragedy struck. Becky suffered a stroke. She spent much of the year in intensive therapy. Her critical illness policy gave her the financial ability to make some minor renovations to her home. This provided Becky much less stress and a faster recovery from her illness.

The value of a critical illness insurance policy is that the money is yours to spend in whichever way you think will facilitate your recovery. You can use the money to pay for treatment that is not yet approved by the government or travel out of the country for treatment that is not available in Canada. Maybe you will need to renovate your home and make it more accessible. Keep in mind that not all policies are the equal. There are many variables, exclusions, and restrictions to consider. Look for comprehensive coverage to meet your needs and budget.

One of our greatest challenges is to temper our psychological mood. We feel fear when the stock market goes down, and euphoria when the stock market goes up. The next time you feel these emotions, ask yourself if you are a long-term investor. We are confident that most of you will answer, "Yes".

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.