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We’re All About Care No Wait List! Move iN today Long and Short Term Complex Care Nestled in a Beautiful Seniors’ Services Area of Sidney Option of a Room With a Private Shower in En Suite Bathroom
2269 Mills Rd, Sidney 778-351-2505 www.allcarecanada.ca 24 SEASIDE | september 2013 | www.seasideMAGAZINE.ca
The last thing you need is to lose all of your retirement savings because of a serious illness or a long-term care health need. The hard truth is that it can happen quickly. Consider the following hypothetical situation: A couple by Jessie Williams retires at age 65 with $300,000 in Sun Life Financial RRSPs. An additional $1,000 is needed from savings each month to top up pension income (Canada Pension Plan, Old Age Security, etc.). The total monthly withdrawal to cover taxes for the tax bracket they're in is $1,300. At this rate, their savings should easily last beyond their average life expectancy, which at 65 is 20 years.1 Then, as a result of a stroke at age 67, one spouse needs long-term care. With home care service costs ranging from $2,900 to $5,400 per month, a withdrawal of at least $5,000 is required from their savings each month (to cover home care, their spouse's normal living expenses, and taxes).2 A stroke at the age of 67 could wipe out $300,000 of savings in less than 10 years. Devastating illnesses and accidents occur more often than you may think. It probably wouldn't take you long to create a list of 10 people you know who have had a heart attack, a stroke or cancer. One way to cushion the financial impact of a critical illness or long-term care need is to purchase health insurance. Critical illness insurance pays a lump sum following the diagnosis of a covered illness. The benefit can help you manage additional costs related to the illness and to cover everyday expenses like mortgage payments, contributions to your retirement savings and saving for your child's education. Long-term care insurance provides financial resources if you become physically dependent. It helps cover the cost of your care over a lengthy period when you're physically dependent. The benefit can be used for care services such as nursing care, rehabilitation and therapy, paying a family member to provide care or paying for someone to come into your home. Today, more than ever, it's important for you to protect your retirement savings from health-related risks. Health insurance gives you more choices if you're faced with the costs of a critical illness or a long-term care situation. © Sun Life Assurance Company of Canada, 2013. 1Statistics Canada, 2012 http://www.statcan.gc.ca/tables-tableaux/ sum-som/l01/cst01/health72a-eng.htm. 2Source: A guide to long-term care insurance, CLHIA 2012. For more information visit www.sunlife.ca.