No illness · no insurance
$1,784,517
Illustrated portfolio value at age 71.
Stop Loss · Wealth Protection
Your Investments Are for Your Future — Not Your Medical Bills
A critical illness can force an unplanned withdrawal from your retirement savings. Critical Illness Insurance can provide a financial safety net — helping you focus on recovery without relying solely on your portfolio.
“Stop loss” describes the planning strategy, not an investment guarantee. Coverage is subject to policy definitions, exclusions, claim requirements and underwriting.
Here’s what should worry you
67% of critical illness claims happen between ages 41 and 60 — your prime earning and saving years.
And two-thirds of the costs patients face aren’t medical bills at all. They’re travel, child care, and lost income your insurance was never built to cover.
The hidden risk
What Happens to Your Portfolio If You Get Sick?
You’ve worked hard, saved consistently, and built an investment plan. But a sudden change in your health can create financial demands that an investment portfolio alone wasn’t designed to meet.
Out-of-pocket treatment, travel, household expenses, or time away from work may need to be funded from savings intended for retirement.
An early withdrawal may have tax consequences. Selling investments before you planned can crystallize losses or reduce future growth. Even a temporary pause in saving can affect your long-term plan.
Your first priority should be recovery — not rebuilding your retirement savings.
A hypothetical example
Meet Susan — A Story That Could Be Yours
Susan starts with $200,000 and saves $20,000 each year. The supplied illustration assumes 5% growth and compares her portfolio at age 71, including a $250,000 recovery expense at age 55.
Illness · without protection
$1,211,512
After the recovery withdrawal: $573,005 less in the supplied illustration.
Insurance · no claim
$1,641,537
Illustrated portfolio value after cancelling an eligible policy and reinvesting a premium return.
Redirect part of the savings, not the whole plan
In this example, $5,167.50 of Susan’s annual savings pays for a Term 75 critical illness policy with a return-of-premium option. The remaining $14,832.50 continues to be invested.
An eligible $250,000 benefit could help fund recovery without that withdrawal from her portfolio. Payment is conditional on the policy’s coverage and claim requirements.
The trade-off in this illustration
If no claim is made and the policy qualifies for the illustrated premium return at age 71, the supplied portfolio difference is $142,980 compared with the uninsured, no-illness scenario.
This is not complete protection from every illness, cost, or investment loss. A premium-return option costs more and its terms depend on the policy.
Premiums depend on age, health, coverage and underwriting; returns and outcomes are not guaranteed.
How Stop Loss protection works
A Lump-Sum Safety Net for Your Portfolio
Rather than an ongoing disability income payment, Critical Illness Insurance provides an eligible lump-sum benefit. Benefits from personally owned policies are generally received tax-free. You can generally use the money in the way that best supports your recovery.
Support your treatment
Help pay for out-of-pocket care, travel, accommodation, or other recovery-related expenses.
Keep household finances steady
Cover mortgage payments, debts, and day-to-day expenses while you focus on getting better.
Make room for care
Help replace income when you or a loved one takes time away from work.
A diagnosis must meet the policy’s definition. Medical evidence, claim approval and a survival period may be required. Thirty days is common for some conditions, but requirements vary — benefits are not automatically paid at diagnosis.
A common misconception
“I Already Have Disability Insurance” Isn’t the Same Protection
Disability insurance and critical illness insurance answer different needs. They can complement each other; one is not a substitute for understanding the other’s coverage.
| Feature | Long Term Disability | Critical Illness Insurance |
|---|---|---|
| Payout | Periodic income-replacement benefits | A lump-sum benefit for an eligible covered condition |
| Claim requirements | Must meet the policy’s disability definition; ongoing evidence may be required | Must meet the covered-condition definition and other claim requirements |
| Returning to work | May reduce or end benefits, depending on the policy | Generally does not reduce an already-paid lump sum |
| Benefit amount | Often based on a percentage of insured earnings | The insured amount or applicable partial benefit |
| Waiting period | Often 90–120 days, depending on the policy | A survival period often applies; 30 days is common, but conditions vary |
General comparison only. Group and individual contracts vary; benefit amounts, exclusions, offsets and waiting periods should be reviewed in the actual policies.
When protection matters
Financial Breathing Room When Recovery Comes First
Eligible benefits can help with specialised equipment, household costs, time away from work, or travel for care. Conditions such as cancer, heart attack, or stroke may be covered — but only when they meet the specific policy definitions.
More than a payout
Medical Guidance May Be Available, Too
Some policies provide access to medical second-opinion services that can help review a diagnosis or treatment plan. Availability, family access, and service terms depend on the provider and your eligibility.
Frequently asked questions
Your Stop Loss Questions, Answered
What is Critical Illness Insurance?
A policy that pays a lump-sum benefit for a covered condition when the diagnosis meets the policy definition and all other requirements, including any survival period, are satisfied. Personally owned policy benefits are generally received tax-free. Covered conditions and exclusions vary.
How is this different from dipping into my investments instead?
A health-related withdrawal can create tax consequences, crystallize losses, or reduce future growth. An eligible insurance benefit can help cover recovery costs and reduce the need to sell investments. It does not guarantee that every cost will be covered.
Do I have to prove I can’t work to get paid?
Critical illness benefits generally depend on meeting the covered-condition definition, rather than an inability to work. Medical evidence, claim approval, and survival or waiting periods may still be required under the policy.
What if I never get sick?
Some policies offer an optional return-of-premium benefit on cancellation or expiry. Eligibility, the waiting period, the amount returned and the effect of a previous claim depend on the specific policy. The option usually increases premiums.
How much does this cost me in lost investment growth?
Premiums reduce the amount available to invest. The trade-off depends on your age, health, coverage, premium schedule, investment returns, fees, taxes, and any return-of-premium option. A personalised comparison is more useful than treating the supplied example as a quote.
Can I use the payout for anything?
Once an eligible lump-sum benefit is paid, you can generally use it as you choose — for treatment, household expenses, debts, or a caregiver’s time away from work. Confirm the terms of the policy you select.
Get started
Protect the Portfolio You’ve Spent Years Building
No cost for an initial personalised Stop Loss projection
Explore how coverage could support your retirement timeline
Review available return-of-premium options and their conditions
Your details are used to respond to this request.