Blog Sign-Up

If you wish to receive notifications of new blog postings and newsletters, please enter your name and email address below.
(You don’t need to do this if you are already receiving notifications, just scroll down to read the latest post.)

*Required fields

Your Retirement Could be Critically Ill

Published by on

Your Retirement Could be Critically Ill


We all do the best we can at accumulating assets to fund our lifestyle and eventually our retirement. What if something were to happen that is out of your control that completely derails your plans? More specifically, what if it’s something that doesn’t even happen directly to you?


Here’s the scenario. You have worked hard and done a great job of saving and are now on the homestretch heading towards your retirement.  The unexpected happens.  Your twenty five year old son contracts cancer and needs to make drastic changes to his lifestyle and living expenses. Being young, he hasn’t been able to save enough money to pay for all of the associated expenses and he is in a very difficult situation.


At this point, you would do anything you could to make sure that your kid has everything he needs in order to fight the disease, and have the best care, the best living conditions and the best possible chance at a cure. That includes digging heavily into your long earned savings at the expense of your own retirement.  That’s the nature of being a parent.


There is a solution, or at least part of a solution.  Some parents buy Critical Illness insurance on each of their children, not just to pay for expenses in the event that the worst should happen, but also to protect their own future.  (Some make their kids pay for their own Critical Illness once they have a real job).  Critical Illness insurance helps to soften the blow should something happen, and the best part is if nothing should happen you can add a provision that would give you a return of 100% of the premiums paid. No kidding. This is the only insurance that works such that if you don’t have to submit a claim you get your money back. Plus, premiums on a younger person are very inexpensive.


Using capital that has been intended for a retirement to fund an illness and/or recovery could have a devastating effect on your long own term well-being.


Let’s look at an example:

Mom & Dad, who are on track for their retirement, want to minimize the risk of massive health costs associated with a critical illness that may impact their 25 year old son. To reduce their cost of a potential health disaster they purchase Critical Illness insurance on him. A $200,000 benefit pays immediately on diagnosis of any one of 24 covered conditions. The cost of this benefit is about $160/month. Down the road, after a minimum period of 15 years there has been no claim. Mom & Dad can either continue the coverage, have the son continue his own coverage, or terminate the policy and get all of the premiums back.  In real life, the trauma of a critical illness has a far greater impact than just financial. CI can at least soften the blow somewhat and protect the future well-being of Mom & Dad.


Obviously, this is a strategy that works as well for you as for any possible kids.  Any questions, just ask!