Daystar Investor Login
Home Page Personal Planning Business Planning Association Benefits Investment Accounts Other Services Request Information
Buy Sell Corporate Plans Critical Illness Documents Wills Disability Buy Out Health Plan Key Man Insurance Term Insurance
Critical Illness Recovery Plan

Because surviving a critical illness is just the first step to recovery

Reality Check

Statistics show that Canadians are living longer. As people live longer, there is a higher potential to be affected by a serious illness or injury. Statistics also show that the Canadian health care consumer is faced with rising health care costs, increases in waiting time for treatment and limited availability of appropriate medical services.


The Critical Illness Recovery Plan is designed to cover the additional expenses you may be faced with should you suffer a severe injury, or catastrophic illness, such as cancer, heart attack or stroke. This plan is a perfect complement to any income protection coverage, which is designed to provide protection for your every day living expenses.
It provided a lump sum payment to give you the independence to make meaningful decisions about your physical and financial recovery and protect your standard of living. You may use the payment in any manner you choose, such as:

  • Out of country or non-government covered treatments
  • Specialized medical treatment, private nursing or child care
  • Alter your home or automobile to accommodate your special needs
  • Payments for your mortgage, business loans or other debts
  • Policyholders of income protection policies, and their families
  • Those who are unable to qualify for income protection coverage, such as:
  • Non-working spouses
  • Individuals who are unable to qualify for income protection coverage on the basis of their income or type of employment
  • Individuals with certain non-critical illness related medical histories that prevent them from obtaining income protection coverage
  • Employees covered by group or association disability plans and their families
Critical Illness Benefits


1 in 4 Canadians will have a heart condition or stroke related illness.
2 in 5 men and 1 in 3 women will develop some form of cancer during their lifetime.
1 in 9 women will have breast cancer during their lifetime.
125,000 new cancer cases in Canada are diagnosed each year.
Why should I get Critical Illness insurance? Will I be on this list above?

Would you have the finances to support yourself, your business or your family if you were diagnosed with cancer or a heart condition?

Even if you could support yourself, at what price, as you withdraw from your RRSP's and savings?

Critical Illness benefits provide Tax Free Cash in a lump sum payment from $ 10,000 to $ 1,000,000 on any of the following 20 Conditions:
Heart attack Major organ transplant Stroke
Cancer Coronary artery bypass Kidney failure
Blindness Deafness Loss of speech
Severe burns Motor neuron disease MS (Multiple sclerosis)
Paralysis or loss of limbs Coma Alzheimer's disease
Parkinson's disease Occupational HIV Insulin dependent diabetes
Benign brain tumor Severe rheumatoid arthritis
How Much Critical Illness Insurance Do You Require?
Personal Needs
Mortgage $ ________
Loans $ ________
Timely or non-insured treatment outside Canada $ ________
Travel, Lodging and meals associated with treatment outside Canada $ ________
Nurse, housekeeper or child care provider $ ________
Equipment (such as wheelchair, scooter or home care bed) $ ________
Home renovations $ ________
Van conversion $ ________
Other ___________________________________ $ ________
Other ___________________________________ $ ________
Total potential expenses $ ________
Less resources available from other sources $ ________
Amount of critical illness insurance for personal needs $ ________
Business Needs
Mortgage $ ________
Loans $ ________
Additional staff $ ________
Buy/sell insurance $ ________
Other ___________________________________ $ ________
Other ___________________________________ $ ________
Total potential expenses $ ________
Less resources available from other sources $ ________
Amount of critical illness insurance for business needs $ ________
Click for Treatment, Services and Equipment Cost Estimates
Disability Buy Sell

Buy Sell coverage is designed to provide funding for the remaining owner(s) or shareholder(s) to purchase the business interest from the disabled owner or shareholder.

  • Partnerships and professional corporations comprised of two to five principals.
  • The types of businesses that would depend on a Buy Sell product for protection might be: accounting firms, advertising agencies, architectural firms, computer firms, medical practices and clinics, osteopathic practices, engineering firms, law practices, employment agencies, and small manufacturers to name a few.
  • Premiums paid are tax deductible as a business expense.
  • With the Business Insurance Option, when you financially qualify, you can increase your Buy Sell protection without requiring medical evidence of insurability.
  • Provides peace of mind - the funds will be there to buy out a severely disabled co-owner's or shareholder's ownership in the business.
Business Protector - The Buy-Sell Policy

In the event of a partners or shareholders' total disability, this policy provides funds to reimburse the owner of the policy for the buy out of the disabled individual.

There are two types of buy outs that can be funded:


1. The corporate entity purchase:

The corporation purchases the shares of the disabled shareholder, and either cancels them or holds them as treasury stock. If held as treasury stock, the shares can be repurchased by the remaining shareholder(s) later in a separate transaction.

2. The Cross purchase:

For a Partnership - The partner(s) purchase the partnership interest of the disabled partner directly.
For a Corporation - The shareholder(s) purchase the shares of the disabled shareholder directly.

The income tax implications are:

  • The premiums paid are not tax deductible by the business.

  • The proceeds, when received, are tax free to the owner of the policy.

  • For an entity purchase (Corporation) - It is our opinion that the proceeds may not be added to the capital dividend account of a private corporation. Thus a tax-free capital dividend cannot be paid.

Disability Buy Sell - Exhibit 1
Exhibit One - Cross Purchase Agreement
% of Canadians Very Concerned or Somewhat Concerned about....
Government's ability to fund services for health care needs 86%
Government's ability to continue pension programs 79%
Having enough money if you become disabled 70%
The cost and availability of long-term nursing care in your senior years 68%
Having enough money if you become critically ill 68%
Having enough money for retirement 67%
Education/college or university costs 61%
Providing for your spouse or family if you should die unexpectedly 58%
  Source: LIMRA 2001 TOPIC survey  
Copyright Ogden Financial Planners Ltd. All rights reserved.