Tremendous strides in medical technology have vastly improved the survival rates of individuals who contract a critical illness such as a heart attack, stroke, or cancer. The fact is that more and more Canadians are surviving critical illnesses that were previously thought of as near-terminal.

Not surprisingly, with the increase in survival rates, there has been a growth in the popularity of living benefit type products such as disability insurance, medical benefits and retirement income products. However, there is an insurable need that, until now, was not being serviced by "traditional"life, disability and retirement insurance products is, protecting an individual's lifestyle after the onset of a "life-altering" critical illness. Consider some of the shortcomings of traditional insurance products in meeting the needs of individuals who contract critical illnesses:

• Life Insurance - the living benefits provided by life insurance policies are designed for those individuals who face imminent death (generally within 12 months). The emphasis is, as it should be, on providing (or advancing) a death benefit rather than a living benefit.
  
• Disability Insurance - most plans provide monthly benefits that may not be adequate for individuals who may face significant and immediate cash needs after the onset of a critical illness.
  
• Retirement Protection - even the best of financial plans can be derailed by the onset of a sudden and serious illness.

Good News! There is a new product available which has been widely successful in countries like the U.K., South Africa and Australia which is now just beginning to make some headway in Canada. It is generically called Critical Illness Coverage. This product normally pays a lump sum on the diagnosis (not disability) of certain well defined and specified illnesses or conditions such as heart attack, life threatening cancer, stroke and often includes kidney failure, multiple sclerosis, paralysis, and coronary bypass surgery.

We want to maintain quality of life as well as independence after a critical illness; a lump sum benefit can help ease the financial burden by paying off debts like mortgages, or altering the home with elevation devices or wheelchair ramps if struck by stroke. Think of the burned-out individuals who suffers a non-fatal heart attack at age 55. Perhaps he/she would like to ease into an early retirement and take time to "smell the roses" realizing that nature gave a wake-up call on his/her own mortality.

This product will appeal to a wide variety of people:

• Singles - Often these individuals see no need for life insurance as they have no dependents.
  
• Family - Whether the person who suffers the critical illness is primary breadwinner, supporting spouse or child, the financial consequences are felt by all.
  
• People who are ineligible for Disability Coverage - This would include home entrepreneurs, homemakers, recent entrants to the job market, part time or contract workers, and individuals who are declined for disability coverage.
  
• Business Owners - Similar to what happens in a family, the critical illness of one of the owners can impact the well being of the entire business.

As you can see, the time is right for a product that fulfills this particular need. It can be used to enhance your existing insurance portfolio, or it can also stand on its own.