Choices
To manage costs of the care and recovery you might need or want for yourself, there are basically four choices.
A cost comparison of these can produce some rather dramatic results. When you get to the next page, you'll see a true-to-life scenario, and calculators you can use to see your own personal results.
| You could: |
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| 1. |
Pay it "out of pocket" if you're fortunate to have enough money at hand. Most of us can rule this one out. Unless you're Oprah. In which case your bases are covered. |
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| 2. |
Borrow the money from a bank. Loan repayments. Ugh. Depending on your situation, you could be looking at a loan amount that's the equivalent of taking on another mortgage. The monthly payment could force you to change your current lifestyle, and prevent you from saving for future dreams and goals. |
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| 3. |
Withdraw from the retirement nest egg you've worked so hard to build. It took some sacrifice and a lot of self-discipline to build equity and a nest egg for yourself. Certainly you wouldn't want to sell assets like a home, car or family heirloom to finance a recovery from illness. And if you were to withdraw funds from your retirement savings, you'd face tax implications and run the risk of drastically reducing the amount of money you’d have at retirement. |
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| 4. |
Plan ahead and know that "recovery insurance" would provide the funds. What we've been referring to as "recovery insurance" is more officially known as "critical illness insurance". But we like the term recovery insurance because that's what it's about. It's insurance designed specifically to help meet the financial needs associated with recovery from a life-altering illness. Recovery insurance differs from life insurance that supports your survivors after you're gone, or disability insurance that replaces a portion of your income if you're unable to work. If you're diagnosed with one of the covered illnesses and survive the waiting period stipulated in the policy, critical illness insurance will provide you with a lump sum cash payment that can be used any way you choose. Think about it. You could recover in Hawaii. Truly, there are no restrictions on how you can use the money (provided all's legal, of course). |
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You might be startled when you see how these choices compare in cost. Have a look and then use our calculators to see your own personal results. Check out what does it cost?
