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Critical Illness Recovery
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UNUM'S CRITICAL
ILLNESS RECOVERY PLAN
Because
surviving a critical illness is just the first step to recovery
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Statistics
show that Canadians are living longer. As people live longer, there is
a higher potential to be affected by a serious illness or injury.
Statistics also show that the Canadian health care consumer is faced
with rising health care costs, increases in waiting time for treatment
and limited availability of appropriate medical services.
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INDIVIDUAL
LIFESTYLE PROTECTION
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The
Critical Illness Recovery Plan is designed to cover the additional
expenses you may be faced with should you suffer a severe injury, or
catastrophic illness, such as cancer, heart attack or stroke. This plan
is a perfect complement to any income protection coverage, which is
designed to provide protection for your every day living expenses.
It provided a lump sum payment to give you the independence to make
meaningful decisions about your physical and financial recovery and
protect your standard of living. You may use the payment in any manner
you choose, such as:
- Out
of country or non-government covered treatments
- Specialized
medical treatment, private nursing or child care
- Alter
your home or automobile to accommodate your special needs
- Payments
for your mortgage, business loans or other debts
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CUSTOMER
MARKETS
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- Non-working
spouses
- Individuals
who are unable to qualify for income protection coverage on the basis
of their income or type of employment
- Individuals
with certain non-critical illness related medical histories that
prevent them from obtaining income protection coverage
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- Employees
covered by group or association disability plans and their families
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| Critical Illness Benefits
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DO YOU KNOW
ANYONE WHO HAS SUFFERED FROM HEART ATTACK, STROKE OR CANCER??
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| LOOK AT THE
STATISTICS AND DON'T IGNORE THE FACTS |
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1
in 4 Canadians will have a heart condition or stroke related illness.
2 in 5 men and 1 in 3 women will develop some form of cancer during
their lifetime.
1 in 9 women will have breast cancer during their lifetime.
125,000 new cancer cases in Canada are diagnosed each year. |
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| Why should I
get Critical Illness insurance? Will I be on this list above? |
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Would
you have the finances to support yourself, your business or your family
if you were diagnosed with cancer or a heart condition?
Even
if you could support yourself, at what price, as you withdraw from your
RRSP's and savings?
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| Critical
Illness benefits provide Tax Free Cash in a lump sum payment from $
10,000 to $ 1,000,000 on any of the following 20 Conditions: |
| Heart
attack |
Major
organ transplant |
Stroke |
| Cancer |
Coronary
artery bypass |
Kidney
failure |
| Blindness |
Deafness |
Loss
of speech |
| Severe
burns |
Motor
neuron disease |
MS
(Multiple sclerosis) |
| Paralysis
or loss of limbs |
Coma |
Alzheimer's
disease |
| Parkinson's
disease |
Occupational
HIV |
Insulin
dependent diabetes |
| Benign
brain tumor |
Severe
rheumatoid arthritis |
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| How Much Critical Illness Insurance Do You Require?
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Mortgage |
$ |
________ |
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Loans |
$ |
________ |
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Timely or
non-insured treatment outside Canada |
$ |
________ |
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Travel, Lodging
and meals associated with treatment outside Canada |
$ |
________ |
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Nurse,
housekeeper or child care provider |
$ |
________ |
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Equipment (such
as wheelchair, scooter or home care bed) |
$ |
________ |
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Home renovations |
$ |
________ |
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Van conversion |
$ |
________ |
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Other
___________________________________ |
$ |
________ |
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Other
___________________________________ |
$ |
________ |
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| Total
potential expenses |
$ |
________ |
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Less resources
available from other sources |
$ |
________ |
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| Amount
of critical illness insurance for personal needs |
$ |
________ |
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Mortgage |
$ |
________ |
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Loans |
$ |
________ |
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Additional
staff |
$ |
________ |
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Buy/sell
insurance |
$ |
________ |
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Other
___________________________________ |
$ |
________ |
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Other
___________________________________ |
$ |
________ |
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| Total
potential expenses |
$ |
________ |
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Less resources
available from other sources |
$ |
________ |
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| Amount
of critical illness insurance for business needs |
$ |
________ |
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| Disability Buy Sell |
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INDIVIDUAL
BUSINESS PROTECTION
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Buy
Sell coverage is designed to provide funding for the remaining owner(s)
or shareholder(s) to purchase the business interest from the disabled
owner or shareholder.
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| CUSTOMER
MARKETS
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VALUE
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Premiums
paid are tax deductible as a business expense.
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With
the Business Insurance Option, when you financially qualify, you can
increase your Buy Sell protection without requiring medical evidence of
insurability.
- Provides
peace of mind - the funds will be there to buy out a severely disabled
co-owner's or shareholder's ownership in the business.
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| Business Protector - The Buy-Sell Policy |
| BUSINESS
PROTECTOR - THE BUY-SELL POLICY (971) (06/95) |
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In
the event of a partners or shareholders' total disability, this policy
provides funds to reimburse the owner of the policy for the buy out of
the disabled individual.
There
are two types of buy outs that can be funded:
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1.
The corporate entity purchase:
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The
corporation purchases the shares of the disabled shareholder, and
either cancels them or holds them as treasury stock. If held as
treasury stock, the shares can be repurchased by the remaining
shareholder(s) later in a separate transaction.
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2. The Cross purchase:
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For
a Partnership - The partner(s) purchase the partnership
interest of the disabled partner directly.
For a Corporation -
The shareholder(s) purchase the shares of the disabled shareholder
directly.
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The
income tax implications are:
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The
premiums paid are not tax deductible by the business.
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The
proceeds, when received, are tax free to the owner of the policy.
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For
an entity purchase (Corporation) - It is our opinion that the proceeds
may not be added to the capital dividend account of
a private corporation. Thus a tax-free capital dividend cannot be paid.
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| Disability Buy Sell - Exhibit 1 |
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| % of Canadians Very
Concerned or Somewhat Concerned about.... |
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| Government's
ability to fund services for health care needs |
86% |
| Government's
ability to continue pension programs |
79% |
| Having
enough money if you become disabled |
70% |
| The
cost and availability of long-term nursing care in your senior years |
68% |
| Having
enough money if you become critically ill |
68% |
| Having
enough money for retirement |
67% |
| Education/college
or university costs |
61% |
| Providing
for your spouse or family if you should die unexpectedly |
58% |
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Source: LIMRA 2001 TOPIC survey |
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