Fill an overlooked income gap with critical illness insurance

Financial advisors have a fiduciary responsibility to work in their clients’ best interest and document everything. It also keeps advisors in good standing with regulators.

“Don’t chase a policy count,” said 24-year-MDRT member Alphonso B. Franco, CFU, RCIS.

Instead, protect your client financially in all of life’s circumstances. A common gap in financial plans that Franco points out is not protecting a client’s income during and after surviving a critical illness. Life insurance is there for families if the person dies, but there can be detrimental financial implications when a person survives an illness that requires months of recovery and expensive treatments.

Critical illness insurance, which pays on diagnosis, can close that often overlooked income gap. Think of critical illness insurance as “financial oxygen to help protect you,” said Franco, who’s from Victoria, British Columbia, Canada.

Godfrey Phillips, FChFP, J.P., a 34-year MDRT member from Caringbah, New South Wales, Australia, agrees. “People can die financially, even if they survive a traumatic illness. You need disability and critical-illness policies to help you protect your financial health.”

Written by Antoinette Tuscano, MDRT Content Specialist


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