Sandwich Generation Insurance needs

For clients in the sandwich generation, life responsibilities can be stressful. As Baby-Boomers age, many are finding themselves caring for and supporting their dependent, live-in children as well as their elderly parents – on top of running a household, paying bills, and reducing a mortgage, saving or contributing to their children’s’ education and planning for their own retirement! The sandwich generation needs to have a plan and the financial resources for these multiple needs.

During the Baby-Boomer’s lifetime, one of the most significant risks is loss of income due to a disability. If these individuals are unable to work and can’t earn an income due to sickness or an accident, they have a large financial risk! Many employers offer group short and long term disability coverage for their employees. Self-employed individuals and professionals need to purchase a loss of income/individual disability plan to protect the continuation of their monthly earnings in the event of an accident or sickness. A number of options can be included in the disability insurance coverage to enhance the plan.

  1. A partial or residual disability rider provides partial payout if the individual continues working with reduced hours, limited duties or loss of income.
  2. The cost of living benefit rider increases the monthly benefit annually while on claim.
  3. The lifetime benefit – accident and graded sickness rider allows you to continue receiving monthly benefits as long as the total disability continues.

If an individual chooses to work beyond age 65, some disability insurance plans allow a conditional renewal after age 65.

Another significant risk to Baby-Boomers is the incidence of a critical illness, which will likely create financial, and lifestyle changes. There is a relatively new kind of insurance available in Canada from which you can actually benefit while you are alive. It’s called critical illness insurance! The concept was originally developed by Dr. Marius Barnard of South Africa, who assisted his brother Christiaan in the first successful heart transplant in 1967. In his own medical practice, Barnard recognized that he was treating an increasing number of patients who were surviving a once fatal illness, such as cancer, stroke and heart disease. He realized that his patients were not losing their lives but their life savings!

Critical illness insurance is a unique combination of financial and medical protection which pays a tax free lump sum cash benefit to the insured 30 days after the diagnosis of a critical illness. Critical illness insurance can provide the financial support that is so desperately needed by someone who may be fighting for their life! Think about having to struggle to maintain a lifestyle with costs you may no longer be able to afford: a mortgage, a car loan, childcare, children’s education, future wedding and retirement. Add in the overwhelming financial burden of expenses such as private nursing, refitting your home or car to accommodate your new medical needs, reduction in or loss of income and recovery time required after your illness or surgery, which may or may not be funded. A serious life-altering illness strikes one in three Canadians during their lifetime!

Critical Illness insurance typically covers all or some of the following illnesses and conditions: Heart Attack, Stroke, Cancer, Heart Bypass Surgery, Major Organ Transplant, Multiple Sclerosis, Parkinson’s, Alzheimer’s, Motor Neuron Disease (ALS or Lou Gehrig’s Disease), Occupational HIV, Kidney Failure, Paralysis, Loss of Limbs or Speech, Blindness, Deafness, Benign brain Tumour, Coma, Severe Burns, Aortic Surgery, Heart-Valve Replacement, and Loss of Independence as defined in the policy contract.

Many Critical Illness insurers include the services of Best Doctors Inc. in their coverage. Best Doctors provides personalized medical evaluations and treatment recommendations by world-class medical experts as well as arranging appointments and treatments in leading hospitals in the US at significant discounts. Best Doctors is your direct path to first rate physicians and care during a medical crisis.

Many people spend most of their adult lives building a financial plan, saving annually for retirement and diligently paying down their mortgage. Years of hard work and saving can be lost if a critical illness strikes! Protecting your assets and maintaining your lifestyle are key reasons to purchase a critical illness policy.