Gaining money, time and financial freedom through critical illness insurance

By Godfrey Phillips, FChFP, J.P.

A major traumatic illness creates special problems and forces you to change priorities. It brings about increased stress and anxiety, massive medical bills, employment issues, home alterations or quality family time. If you have clients who have claimed on a critical illness insurance policy, you know some additional problems your clients have gone through.

• Disability income: Will pay, but won’t be enough.
• Life insurance: Will be enough, but won’t pay.

Critical illness insurance fills the gap when needed most to protect the client’s financial health. Critical illness insurance is the health line of credit that will bring money freedom and time freedom, which is financial freedom.

You might be wondering what money, time and financial freedoms are. A good hockey mate of mine had a massive heart attack and stroke and couldn’t work for many months. Upon diagnosis of his illness, he received a substantial critical illness insurance payout that helped him pay his hospital and medical bills and someone to do his share of the work in the business. He took quality time out of the business to get fit enough to go back to work on his time frame, which was over 12 months. He had time freedom to get well on his timetable and money freedom to pay all the bills, which ultimately gave him his financial freedom. Incidentally, he also had an income protection policy that paid 75 percent of his income while he was off work.

Hence, you can see what I mean by money, time and financial freedom, and how important it is to have all the correct insurances in place in your client’s financial plans.

Hear more in the November episode of MDRT Presents:

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Godfrey Phillips is a 33-year MDRT member from Caringbah, New South Wales, Australia.