Critical Illness Presentation

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(No Transcript)
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About Crossgrove Company

• Since 1985 our team has been providing management
  consultants and executive across Canada with
• - In-depth Knowledge
• - Superior Service
• - Optimum Tailored Risk Management Solutions
• We have worked with members of the Canadian
• Association of Management Consultants since
  1993
• Our area of specialty is Living Benefits

Wealth creation and management
Liquidity
Living Benefits
Retirement
Financial Security at Death
Wealth protection
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What are living benefits?

• Insurance designed to financially assist you
  through the recovery of an illness
• There are three types
• - Critical Illness Insurance
• - Disability Insurance
• - Long-Term Care Insurance
• Today we will focus on Critical Illness
  Insurance (CI)

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Critical Illness Insurance

• An individual insurance contract that is
• - Non-Cancelable
• - Fully Guaranteed
• Amount of Coverage
• Definitions
• Premium
• In the majority of cases, 30 days after the
  diagnosis of a covered condition, a lump sum
  tax-free payment is made to the insured
• It is to the insureds discretion how to use the
  tax-free benefit

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Statistical Considerations
1 in 4 Canadians will develop a critical illness
before retirement
Cancer

• 1 in 2.4 men and 1 in 2.7 women living in Canada
  will develop cancer
• Since 1970 the incidence of cancer has increased
  at the rate of 1 annually
• More than half of all people living with cancer
  will survive at least 5 years after diagnosis

Heart Disease and Stroke

• 1 in 2 men and 1 in 3 women are predicted to
  develop heart disease in their lifetime
• 1 in 2 heart attack victims are under the age of
  65
• 95 of heart attack victims survive the initial
  occurrence
• 91 of patients admitted to Torontos leading
  cardiac emergency hospitals would have qualified
  for a critical illness payout after 30 days
• 75 of stroke victims survive the initial event
• Up to 80 of stroke survivors return to their
  homes, still requiring assistance for daily
  living

Sources Canadian Cancer Society, Heart and
Stroke Foundation of Canada
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Canadians are living longer
Changes in life expectancy
1920
1950
1999
Men (ages)
Women (ages)
Source Statistics Canada
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Government health care costs
Health care needs change over our lifetime.
This chart shows how much provincial/territorial
governments spent per person on health care by
age group.
Source National Health Expenditure Database, CIHI
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Evolution of persons retiring to newcomers
This area identifies a time when the number of
newcomers to the labour market will be surpassed
by those retiring. This results in lower tax
revenues, further straining our health care
system.
Thousands
3,000
2,500
Newcomers (20-24)
2,000
1,500
1,000
Retiring (60-64)
0
2001
2016
Source Actuarial Report, Canada Student Loans
Program
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Provincial Statistics
1993 2000-01
28.9
25.8
18.9
16.7
16.5
16.9
17.1
16.6
16.2
13.9
15.0
14.6
12.3
11.5
10.6
10.5
9.8
10.5
9.3
10.4
9.2
Waiting periods in weeks
7.3
BC AB SK MB
ON QC NB NS
PE NL CAN
Source The Fraser Institute, Annual Waiting List
Survey
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Consider your family, friends lifestyle
The wait for medical care may be long and could
cause a financial drain if you seek treatment
elsewhere.
Average waiting time for Canadians is 16.2
weeks (between referral by GP and treatment)
Source The Fraser Institute, Annual Waiting List
Survey
Out of country treatment (based on treatment at
the Mayo Clinic)
CDN
Heart transplant (2-4 weeks in hospital)
248,000 - 372,000
Coronary artery bypass (1-4 vessels, 5-7 days in
hospital)
89,900 - 114,700
Radiation cancer therapy (for 6 weeks)
39,060 - 49,058
Source Transplant Financial Services / Mayo
Rochester Estimating Services / Mayo Rochester
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Possible problems affecting your family
Emotional trauma and stress to you and your family

• Loss or reduction of income loss of savings,
  liquidity, home
• 17 of called bank loans are due to critical
  illness
• 67 of current cancer treatment costs are
  unfunded
• Increased living expenses
• Lifestyle changes
• Loss of choice and independence
• Jeopardized retirement goals and dreams
• Risk to your childrens future

Source Canadian Cancer Society, Canadian Bankers
Association
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How can I protect myself my family?
What are my current financial options?
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The high cost of borrowing
Many loan facilities require proof of active
employment income. During a period of critical
illness, borrowing may not be a viable option to
many. A lender will likely charge a higher
interest rate to a borrower with a critical
condition and reduced income than otherwise
expected. The following example illustrates the
cost of borrowing 150,000
10 year Repayment Term
20 year Repayment Term
Interest Rate
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257,916
199,837
218,389
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301,118
237,871
10
347,407
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Sell assets?

• An unplanned sale of Investment Assets may
  trigger surrender fees or market value
  adjustments
• Market timing a forced liquidation during market
  downturns can increase the total cost of selling
  assets
• Ease of disposal or sale
• Reduce or eliminate compound growth from the
  assets for retirement or inheritance

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Critical Illness Funding Analysis
150,000 RRSP withdrawal vs. Critical Illness
Insurance
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Exclusive offering

• On behalf of Canadian Association of Management
  Consultants we have negotiated an exclusive
  discount with Canada Life on their Critical
  Illness Insurance offering
• CMC members can purchase from 25,000 to 2
  million of coverage at discounted rates
• The contracts are owned and paid for by each
  member, which means
• you can still maintain them should you leave the
  association
• once issued, the discount is contractually
  guaranteed and not dependent upon future
  membership in the association
• Any insurance benefit will be tax-free to you
• Canada Life provides the most comprehensive
  coverage in the marketplace
• Return of Premium (ROP) option available should
  you not have a claim
• Canada Life is particularly expeditious in paying
  their CI claims as we can attest on behalf of our
  clients who have had a covered condition.

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Standing by their offering
Canada Life has paid over 42 million in claims
(2003 2008)
Examples of claims paid
Age at claim 34 37 38 41 44 47 50 51 53 58 60 63
Diagnosis Cancer Leukemia Breast
Cancer Stroke Multiple Sclerosis Coma Heart
Attack Prostate Cancer Ovarian Cancer Lung
Cancer Coronary Artery Bypass Surgery Parkinsons
Disease
Benefit Amount 250,000 250,000 300,000 100,000
100,000 200,000 50,000 250,000 100,000 250,
000 350,000 100,000
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Comprehensive Coverage
Canada Life Offers the Most Comprehensive Coverage
Alzheimers Disease Aortic Surgery Aplastic
Anaemia Bacterial Meningitis Benign Brain
Tumour Blindness Coma Coronary Artery Bypass
Surgery Deafness Heart Attack Heart Valve
Replacement Kidney Failure
Life-Threatening Cancer Loss of Limbs Loss of
Speech Major Organ Failure on Waiting List Major
Organ Transplant Motor Neuron Disease Multiple
Sclerosis Occupational HIV Infection Paralysis Par
kinsons Disease Severe Burns Stroke Best Doctors
In addition, Two Unique Riders

• Loss of Independent Existence for the Duration
  of Coverage
• Second Event (50 up to 50,000 before age 65)

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Linking you with Best Doctors
Canada Life provides you with access to the
services of Best Doctors, which are designed to
help you and your treating physician, upon
diagnosis of a covered condition, improve the
chances of a successful outcome through access to
additional information.
InterConsultationTM provides an in-depth review
of your medical records, personalized medical
evaluation and treatment recommendations from
specialists affiliated with leading medical
institutions throughout the world. FindBestDocTM
is your link to more than 50,000 specialists in
Canada and around the world. You are provided
with the names and professional profiles of up to
three top specialists based on your geographic
preference, who have been identified by other
doctors as the best for treating your
condition. FindBestCare provides assistance
with medical appointments to help ensure that
your medical priorities are met.
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Next steps

• Set a time with us to discuss your unique
  situation
• 800-567-3094
• alec_at_crossgrove.com
• www.crossgrove.com/camc

• From our private discussion we will create a
  custom proposal for your consideration based upon
  your specific needs
• Should you wish to proceed, an application and
  medical requirements need to be completed
• All requirements (phone meeting, application
  medical requirements) are completed based upon
  your schedule
• The entire process is extremely flexible
• Ongoing administration and claims support

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Conclusion
If you were diagnosed with a Critical Illness
would you?

• Have the financial security to cover all your
  medical expenses?
• Be able to maintain your current lifestyle?
• Want access to advanced medical knowledge and
  treatments?
• Need counseling and support services? What about
  your family?
• Are you prepared?
• Invest a moment today
• to safeguard tomorrow

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Questions please
We welcome your questions thoughts.