Juvenile Critical Illness with Return of Premium

Protection if you need it.  A refund if you don’t.
Critical Illness Insurance – Not Just for Adults
Most of us have experienced or known someone whose family has been greatly impacted by a parent being diagnosed with a life-threatening disease or condition.  But what about when it happens to children?  Sadly, all too often children are affected by childhood diseases such as:

  • Type 1 diabetes mellitus
  • Congenital heart disease
  • Cerebral palsy
  • Cystic fibrosis
  • Muscular dystrophy

The emotional and financial impact of these types of diagnosis can be devastating for a family.
Why would juvenile critical illness coverage make a difference?

  • Provides funds to find the best treatment and care for your child – inside or outside of Canada
  • Provides the financial resources to be able to focus on your child’s needs so you don’t have to worry about
    • Working
    • Extra childcare expenses for other children in the family
    • Extra expenses incurred by the illness
  • Being prepared for this unexpected event will give you the priceless freedom to spend extra time with your child without the stress of financial concerns.

While most life insurance companies in Canada offer Critical Illness protection for adults, not all offer similar coverage for children.  Of those that do, Sun Life provides a particularly unique policy when combined with a Return of Premium Option.
What makes Sun Life’s Juvenile Critical Illness Unique?

  • Insures against 25 adult conditions, plus the above childhood illnesses.
  • At age 24, childhood conditions drop off and the policy automatically continues as an adult plan.
  • The Return of Premium Option provides an automatic refund of 75% of all premiums paid at age 25 or 15 years from the policy date whichever is later.
  • The policy can be surrendered 15 years or later from that date for a refund of the balance of total premiums paid.

What happens when there is no claim?
Bob and Sally purchase $200,000 Critical Illness Term to 75 with Return of Premium Rider on their 5 year old son, Michael.  The annual premium for the policy is $1,393 ($462 of this premium represents the Return of Premium Rider) 

  • At Michael’s age 25, an automatic refund of premiums returns $20,895. This represents 75% of the total premiums paid to date.
  • Adding the Return of Premium Rider for a cost of $462 a year represents a tax-free rate of return of 7.26% on that portion of the premium.
  • In Michael’s case, he can surrender the policy any time after his age 40 for a full refund of the balance of the total premiums paid.

Additional Premium Refund at surrender:

  • Age 40 $ 27,860
  • Age 45 $ 34,825
  • Age 50 $ 41,790

Sun Life’s Critical Illness Insurance plan with the Return of Premium Option for juveniles is a very unique plan that provides peace of mind if you need the protection and a full refund of your premiums if you don’t.
If you would like to explore this exceptional plan in more detail please call me and I will be happy to assist.  Also, feel free to share this article with anyone you feel would benefit from this information by using the share buttons below.
* – assumes application is made for non-smoker rates at age 18