The Big C rears its ugly head

by Jamie Henry29 May 2015
New report suggests advisors might want to make sure your clients are covered for coming epidemic.

“Regardless of what’s going on it makes sense to not smoke, eat healthy and exercise,” says Ken MacCoy, Life, Disability & Employee Benefits Specialist at RitePartner Financial Services & MGA: Edge Benefits Inc. “That’s why when I’m talking on the phone I walk up and down the stairs. If you’re sitting at your desk all day, and not getting up and down, it’s bad for you. The more exercise you get is better for you.”

The Canadian Cancer Society recently released a report that predicts there will be a 41 per cent increase in the number of diagnosed cases of Cancer by the year 2030, when it’s estimated there will be 277,000 new cases per year in this country.

As a result the Canadian health care system is going to be seriously taxed.

"The systems we have in Canada need to be able to accommodate that sheer volume of people are going to be coming down the road,” said Robert Nuttall of the Canadian Cancer Society.

But how should advisors deal with this impending bad news?

“When it comes to insurance, 1 in 1,300 your home’s going to burn, 1 in 74 you’re going to have a car accident, 1 in 4 you’ll be disabled for 30 days or longer before age 65, 1 in 3 you’ll have a critical illness, and 100% chance that you’re going to die, it’s just a matter of when” says MacCoy. “The only person that’s going to take care of you, especially the people who are self-employed, it makes sense to have disability coverage for injury because it doesn’t matter whether you’re 26 or 62, disability insurance premiums for injury-only coverage are exactly the same.”

That doesn’t mean that MacCoy’s eschewing life insurance for disability insurance, he’s really just suggesting that despite the spike in Cancer cases that’s expected over the next 15 years, you’re far more likely to experience some sort of disability that prevents you from working than you are to suffer a premature death.

When it comes to life insurance and the potential epidemic, MacCoy is quite candid about who should own it.

“The only people who buy life insurance,” says the veteran advisor, “are those that love their families. If you don’t love your family, you don’t buy life insurance.”


  • by 2015-05-29 6:34:04 PM

    WHY do I recommend injury 'only' disability coverage ... for the self-employed ?

    (1) The self-employed usually do NOT have Employment Insurance (E.I.).
    (2) If they do, E.I. only pays 55% of income based on 2015 insurable earnings of $49,500 to a maximum of $524.00 'taxable' a week.
    (3) Issue ages are 18 to 69, with coverage to age 75.*
    (4) We verify the Gross Business Revenue & Net Earned Income to determine which method is most favourable for calculating the 'Non-Taxable' benefit for the 'self employed'.
    (5) A 3 year 'regular' occupation coverage.
    (6) Elimination (waiting) Periods of: 0 days, 30 days or 120 days
    (7) Benefit Periods: 5 years or 'to age 70'. - * Benefits to age 70 if disable before age 68, or 24 months if disabled from ages 68 to 75.
    (8) Add 'Business Overhead Expense' to your disability plan or as a stand-alone policy to reimburse a business for overhead expenses in the event of a key person's disability. - Note: Premiums are deductible as a business expense.

    However, injury (only) disability + a Critical Illness policy with (ROP) Return of Premium provides the best solution for the self employed. Why? Injury disability premiums are inexpensive + if you never claim on the Critical Illness policy ...100% of the premiums paid are refunded on expiry.

    The 'self-employed' often don't worry about getting sick ... because we rarely take 'sick days. If we miss a couple days because of the flu, we work harder to make up the lost time. However, a critical Illness could be devastating to both business and personal finances. That's why Critical Illness Insurance should be a priority for the self employed and added to an injury (only) disability plan.

  • by Ken MacCoy, CHS 2015-05-29 8:41:20 PM

    P.S. - I also wouldn't recommend the above the self-employed and my clients ...if I didn't carry the exact same coverage myself.