Critical Illness Policy for Retirement

Protecting your retirement funds is crucial, especially in case of a sudden sickness that may render you unable to work.

That’s where a Critical Illness Policy comes into play – it ensures you have the funds to survive without dipping into your retirement nest egg.

By adding a return of premium rider to the policy, you needn’t worry about what will happen if you don’t get sick, and can instead be secure in the knowledge that you’ll be covered if you do.

We put our calculations to the test with a non-smoking, 38-year-old female, factoring in $100,000 in an RSP and $400 monthly contributions.

Without a CI policy and staying healthy, she can expect a retirement fund of $625,936 with a monthly income of $3,688 at 65.

However, in the unfortunate event of sickness and the subsequent inability to work for four years, her retirement would be compromised, with her retirement fund reduced to $117,807 and a meager monthly income of $682.

With a supportive retirement plan that includes a CI policy and return of premium option for the same $400 monthly contribution, this woman’s retirement will look much more secure.

The best part is, if she doesn’t need the CI she will get paid back approximately $43,189.

Are you ready to plan for your retirement or at the least protect what you have?

If so, send us a message.