Most people don’t believe they’ll be diagnosed with a critical illness. Fortunately, advances in lifestyle and medical technology have greatly increased your clients’ chance of surviving a critical illness.
But can they survive financially?
Your clients can avoid dipping into their RRSP portfolio or investment holdings should the unthinkable happen. Put your clients’ tax refund to work with the purchase of critical illness insurance.
Did you know? Nearly 6 out of 10 returns filed last year resulted in an average refund of $1,696.1
Consider: James (38) who just received a tax refund cheque for $1,700. He already has life insurance protection in the event of premature death BUT has no critical illness insurance. His insurance advisor recommends purchasing two Living Benefit Plans from BMO Insurance with Return of Premium riders.
How does this benefit James? - James will have $75,000 of critical illness insurance protection in place to help him recover financially should he become critically ill from any one of the 25 covered conditions.
- If James retires at age 65, and assuming no claims were made, he can surrender his Living Benefit 75 plan with ROPS65 and get a refund of all his premiums worth $25,677.5 He can then use part of the money to pay the annual premium on his Living Benefit 100 and invest the rest of the funds or purchase a life annuity.
- Should James suffer a covered critical illness after retirement, his $25,000 Living Benefit 100 plan can help cover some of his expenses.
Why Living Benefit Critical Illness Plans from BMO® Insurance? - Broad range of critical illness plans with competitive rates and 2013 CLHIA benchmark definitions
- 25 covered conditions (including Loss of Independent Existence)
- CI riders available on Preferred Term and UL policies with no additional rider or policy fee – Bundle up and Save!
- Best Doctors®† coverage for the life insured, their immediate and extended family members
- Helping Hands assistance from Morneau Shepell©
- Multi-policy fee discount available for family and business relationships - Can now be applied when Living Benefit plans and Preferred Term plans are submitted at the same time
1 CRA claimed that about 58% of returns filed resulted in a refund. Source: cbc.ca/news/business/taxes/tax-time-2015-how-to-file-your-tax-return-online-1.2960477. 2 100% Return of premium starting at age 65. 3 100% Return of premium starting at year 20. 4 Multi-policy fee discount applied. 5 Assuming annual premium, ROPS = 951 * 27 = 25,677.
The information in this publication is intended as a summary of our products and/or services and may include projected values based on a set of assumptions. Actual results may not be guaranteed and may vary. Please consult the appropriate policy contract for details on the terms, conditions, benefits, guarantees, exclusions and limitations. The actual policy issued governs. Each policyholder’s financial circumstances are unique and they must obtain and rely upon independent tax, accounting, legal and other advice concerning the structure of their insurance, as they deem appropriate for their particular circumstances. BMO Life Assurance Company does not provide any such advice to the policyholder or to the insurance advisor.
®†Registered Trademark of Best Doctors, Inc.
©1996-2015 Morneau Shepell Ltd.
MB 410 (2016/04/20)
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