Manulife Financial Poll Finds Canadians' Savings And Investments At Risk In The Event Of A Critical Illness

Most Have Little Confidence They Have Financial Resources To Cover Costs Of Recovery

WATERLOO ON - Most Canadians expect they will need to dig into their savings and investments to finance expenses incurred from a critical illness, according to a new survey funded by Manulife Financial.

While most Canadians are aware that expenses like travel to medical appointments, child care and home care might not be covered by their provincial health care plan or employee benefit plan, only 16 per cent of this group are very confident that they have the financial resources on hand to cover the costs of recovery.

Seven Out Of Ten Unaware Of Coverage Available

The survey also notes that 71 per cent of Canadians are not at all familiar with a relatively new insurance product in Canada called "critical illness" insurance.

"This reconfirms our belief that Canadians need to learn more about the financial benefits critical illness insurance can provide," says Michael Doughty, Vice President Individual Life Marketing and Product Development. "It's designed to ensure people have the financial resources they need so they can focus on getting better. The last thing they need is to be weighed down with the stress of managing to cover costs associated with their recovery or worrying that they're depleting their retirement savings."

Among those surveyed who expect to pay extra recovery expenses, 23 per cent said they would likely tap into their RRSPs to do so.

Fully one-third of those expecting to pay extra expenses would draw on their savings accounts and other investments. Twenty per cent would take out a bank loan, 18 per cent would borrow from family or friends, 13 per cent would sell some property or possessions to pay recovery bills, while 12 per cent said they might re-mortgage their home.

Provides Lump-Sum Payment

Critical illness insurance eases the financial burden of a life-altering illness by providing a lump-sum cash payment upon survival of a waiting period (30 days in most cases) after the diagnosis of one of several critical illnesses. Generally, people choose to use the proceeds to finance other treatments, hire a nurse or caregiver, pay off a mortgage, replace lost income, maintain RRSP contributions, or take a vacation to help them recover from their illness.

"More and more Canadians are realizing that a serious illness can be very disruptive to a family's finances," says Paul Rooney, Senior Vice President, Individual Insurance. "Critical illness coverage gives our customers a simple, hassle-free way to obtain a level of financial protection that is not available through their life insurance policies."

Almost half of those surveyed by Market Facts estimated they could expect to pay more than $10,000 themselves for costs while recovering from cancer, 19 per cent suggested it might be less, 10 per cent did not expect to pay anything themselves, while the rest would not make an estimate.

Manulife Lifecheque

All Manulife Lifecheque policies provide protection against cancer, heart attack, stroke and coronary bypass surgery, which represent approximately 83 per cent of the critical illness cases in Canada. However, depending on the insured person's age and coverage chosen, Lifecheque policies may cover up to 18 critical conditions, including Alzheimer's disease, Parkinson's disease, multiple sclerosis and receiving an organ transplant.

"Critical illness insurance fills a gap not covered by traditional products," says Mr. Rooney. "That may include helping with the cost of keeping a home or business during recovery, illness-related travel costs, special medical treatments or other expenses. Many people don't realize that if you are under the age of 75, there is a far greater likelihood of getting seriously ill than dying prematurely. We're confident that people who know about critical illness insurance will want to make it an integral part of their overall financial plan."

The poll for Manulife, conducted by Market Facts between April 17 and April 21, 2002 surveyed 1002 Canadians aged 18 and older. The results have a margin of error of +/- three per cent, 19 times out of 20.

About Manulife Financial

Manulife Financial is a leading Canadian-based financial services group operating in 15 countries and territories worldwide. Through its extensive network of employees, agents and distribution partners, Manulife Financial offers clients a diverse range of financial protection products and wealth management services. Funds under management by Manulife Financial were Cdn$146.7 billion as at March 31, 2002.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at http://www.manulife.com/.

• Critical Illness insurance and Manulife
• Critical illness insurance was originally developed in South Africa in the early 1980s by Dr. Marius Barnard, brother to heart transplant pioneer Dr. Christiaan Barnard. He noticed his brother's patients were surviving their operations and needed financial help as they recovered.
• Manulife became a leading provider of critical illness insurance to Canadians when it acquired Commercial Union of Canada in April 2001.
• Manulife offers four different Lifecheque critical illness plans. Customers can choose from different coverage types and amounts that can range from $25,000 to $2 million. Depending on the type of plan, a client could receive a lump-sum payment after a 30-day waiting period or more, depending on the specific condition covered, if they are diagnosed with any of the following conditions:
  
  
  • Heart Attack
  • Coronary Artery Disease requiring surgery
  • Stroke
  • Cancer (Some exceptions apply.)
  • Multiple Sclerosis
  • Blindness
  • Deafness
  • Loss of Speech caused by physical disease or injury
  • Kidney Failure
  • Major Organ Transplant recipient
  • Paralysis
  • Loss of Limbs
  • Coma
  • Alzheimer's Disease before age 75
  • Motor Neuron Disease (ALS or Lou Gehrig's Disease) before age 75
  • Occupational HIV Injury
  • Parkinson's Disease before age 75
  • Severe Burns

For further information contact: Tom Nunn, Manulife Financial, (519) 594-8578, tom_nunn@manulife.com

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Copyright © 2002 Canada NewsWire.

This article posted July 20, 2002.