Sun Life’s Critical Illness Insurance for Children Has Unique Return of Premium Option

Sun Life’s Critical Illness insurance for Children will return 75% of all premiums paid to parents, and coverage continues

This is by far the BEST deal a parent in Canada can get when buying critical illness insurance for children. No other company is offering 2 return of premium options on a child’s critical illness insurance policy in Canada. I’m not sure how they are doing it and if they will lose money on this deal, but it is something that you can hardly dare pass up.

I’ll explain to you how you can protect your children from life altering critical illnesses throughout their life and even protect them from early childhood onset diseases, like juvenile diabetes, with a critical illness insurance policy. And if your child remains healthy, Sun Life Financial will give you back 75% of all the premiums you invested into the plan when your child turns 25. Let’s take a look at why you would get critical illness insurance for children and how the Sun Life policy works.

Why buy critical illness insurance for children?

When we are making plans for our children’s future it should also include their financial planning. What if they suffered from a critical illness early on in life? The financial impact of it could affect the entire family. For the time when your child is young, a critical illness insurance policy can be used for:

• Taking time off work to be with your child
• Access the best medical advice possible
• Make the best decision about treatment options for your child without having to consider the financial implications of your decision
• Cover costs such as transportation, accommodation and food if you have to travel for treatment

Critical illness insurance for children will protect the family’s financial future and give you child the best care possible if they ever suffered from a critical illness.

How Sun Life Financials Critical Illness Insurance for Children works*

For this example, we will look at buying $100,000 of Term 75 critical illness insurance on a 5 year old girl. The policy will have the Return of Premium rider added to it so that premiums will be returned to the parents when she is 25. The cost for this policy is only $622 per year or $56 per month. This premium will remain level for the life of the policy and never increase.

When the daughter turns 25 the parents will receive 75% of all premiums paid into the plan back as an early return of premium (the 1^st return of premium on the plan).

15 years later, when the daughter is now 40 years old, she could elect to either continue the coverage or cancel it and receive back 100% or all premiums paid into the plan. If she elects to keep the insurance, the 100% return of premium continues to grow each year as she pays her premiums.

Example of how Sun Life’s Critical Illness Insurance for Children would work

• Parents buy $100,000 of critical illness insurance on their daughter at age 5.
• At age 18 they elect to add the Log-Term Care conversion option, allowing their daughter the ability to convert the critical illness insurance into long-term care insurance when she is older.
• At age 25 the parents receive a cheque for $9,330 from Sun Life Financial for 75% of all premiums they put into the plan. That means the coverage for 20 years only cost them $3,110, or $12.96 per month. They can use this money however they chose, and it is paid out tax free.
• The policy continues for their daughter, and premiums remain at $56 per month. The parents transfer ownership of the policy over to their daughter.
• At age 40, the now adult daughter can decide to cancel the policy and cash in another $12,440 of premium returned to her, or continue coverage. The 100% return of premium would grow each year in lock step with her premiums paid from this point on.
• Between age 60 and 65 the woman has some choices. She can either keep her critical illness insurance through to age 75 OR she could convert all of it or a portion of it into Long-Term Care Insurance.
• If she chooses to convert her critical illness insurance into long-term care insurance she would receive the return of premium at that time, and could use the money to fund her long-term care insurance premiums. A conversion at age 60 would mean $24,880 would be returned to her upon exercising the conversion option.

Remember the fundamental part of the plan. If the daughter/woman was ever to suffer a critical illness, like cancer, heart attack, stroke, MS, or a host of other life altering illnesses and injuries, she would receive $100,000 of critical illness insurance benefit, lump sum and tax free 30 days after diagnosis of her illness.

Find out more about getting your children critical illness insurance from Sun Life Financial

Feel free to contact Life Guard Insurance to speak with a qualified broker who can show you the benefits of using Sun Life Financial’s critical illness insurance for children.

* Based on the Sun Life Financial critical illness for children scenario in the attached client brochure.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about Sun Life’s critical illness insurance for children would be very much appreciated.

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3. Protect Your RRSP from A Critical Illness
4. Simplified Critical Illness Insurance Online in Canada
5. Building A Financial Plan That Gives Your Children A Head Start

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