I've got some dreadful news. The number of people that get diagnosed with cancer is expected to grow by 50 per cent over the next decade.
The good news is that if you do get cancer there is a wealth of new drugs and new treatments available. And these new drugs work. 60 per cent of cancer patients will recover.
So if people are not dying like they used to, what's the problem? Simple. The problem is money.
These new drugs and treatments are expensive, and not all of them are covered by the provincial health care plan. If you get cancer you can expect to need $60,000 to $70,000 in your bank account per year of treatment.
That's for things like lost income for you and your spouse, drugs and treatments that aren't covered by the provincial health care plan such as anti-nausea support medications, and the normal expenses that you would have anyway such as food and shelter. And since the drugs work, you can be on treatment for some time. Could your family's finances absorb a $60,000 annual hit?
The Canadian Cancer Society recently released a study that says nine out of 10 Canadian families battling cancer are also battling financial debt. And given that nearly half of all Canadians will develop cancer, that's a pretty big deal.
Think about this. 91 per cent of people stricken with cancer will report a drop in income or a rise in expenses. It's not just the disease that you have to deal with; it's the financial hardship that accompanies it.
Even further, all the costs of dealing with cancer are going up, but the amount of money that is needed for the costs that are not covered by the provincial health care plan is growing fastest of all. These are the costs that you would need to find a way to deal with. Could you do that?
Bear in mind that a critical illness doesn't affect just the sick person. It affects the families too. In addition to new expenses, the spouse is going to be taking time off work to try nurse their sick partner.
And that says nothing of the mental anguish of knowing that there is a very good chance that you might lose your spouse. Imagine the spouse's juggling act of trying to keep the household going by themselves, and adding the additional burden of what might very well be hospice care.
The last thing that you want to worry about if you are staring your own mortality in the face, in what very well could be a long, painful, expensive process, is where the cash will be coming from. But you don't have to.
Critical Illness Insurance provides a tax-free lump sum payment 30 days after the diagnosis of a covered critical illness. This money can be used however you see fit - treatment, medical travel, home renovations to accommodate your new needs, to pay the bills, whatever. It's your choice.
With this recent report on how cancer causes financial hardship, the Canadian Cancer Society is calling for income stability for patients and caregivers and more funding for affordable cancer drugs and medical equipment.
Well, that's one option - to wait for public funding. But another option is to take care of yourself. And, frankly, I like that option better.
If I am dependent on the government to provide for me, sure, it might happen. But if I take care of myself, I know it is going to happen.
You see, your risks of developing cancer are exactly the same whether or not you have a Critical Illness Insurance policy in force. It's just that with a Critical Illness Insurance policy you don't need to have financial pressures compounding what is already a trying time.
There are no real alternatives to a Critical Illness Insurance policy. Critical Illness Insurance will pay a tax-free lump sum benefit if you are diagnosed with and survive a covered critical illness. That can allow you to focus on what's most important ... getting better.
And its not just you that you need to worry about. It's all the members of your family. If your kid is in the cancer ward, do you really think that your ability to earn income is unaffected? Of course it is. You aren't going to be on the job, you are going to be at your child's bedside.
You don't need Critical Illness Insurance because you are going to die. You need it because you are going to live.
Be covered. It won't change whether or not you or a member of your family will get cancer, but it will change how you are able to deal with it.
The opinions expressed are those of Brad Brain, CFP, R.F.P. CLU, CH.F.C., FCSI. Brad Brain is the President of Brad Brain Financial Planning Inc. in Fort St John, BC. He can be reached through www.bradbrainfinancial.com. Follow Brad on Twitter @BradBrain.
