Portfolio Planning Inc.
As trusted healthcare professionals, Optometrists are often on the front lines of identifying early signs of diabetes but it’s not just your patients who should be paying attention.
With the rise in Type 2 diabetes across Canada, it’s time to take a moment to look inward. If you were diagnosed with diabetes tomorrow, how would that affect your financial health and can you current plan absorb the impacts?
At Portfolio Planning Inc., we work with Optometrists and understand the unique blend of personal and professional financial needs you face. In this article, we’ll walk through how diabetes (and other chronic conditions) can affect your insurability, how you can access tax credits like the DTC (disability tax credit), why it’s important to act while you’re young and healthy, and how an Apple Watch might be part of your plan (PS it can be FREE!)
How Diabetes Affects Your Ability To Get Insurance
Health conditions like diabetes can have a major impact on your eligibility and pricing for several forms of personal insurance:
1. Life Insurance
Diagnosed diabetics often face:
- Higher monthly premiums
- Fewer product choices or policy limits
- Possible declines from some providers, especially if there are complications
2. Critical Illness Insurance
CI insurance pays a lump sum if you’re diagnosed with a major illness. Diabetes-related conditions like heart attack or stroke are common claims, but having diabetes at the time of application can lead to:
- Higher premiums
- Exclusion clauses
- Or a full decline
3. Disability Insurance
Disability insurance is your income safety net if an illness or injury takes you away from your practice. Diabetes can be a red flag for underwriters, especially if it comes with other risk factors. You may face:
- Premium surcharges
- Limited benefit periods
- Exclusions for diabetes-related disabilities
In short: once you’re diagnosed, the options shrink. That’s why we always say…
Your Health is Never Better Than Today!!
Insurance is like a fire extinguisher, you hope you’ll never need it, but it’s pointless to buy it after the fire starts.
If you’re healthy now, this is the moment to:
- Lock in life, critical illness, and disability coverage while you still qualify for the best rates
- Avoid future medical exclusions or denial of coverage
- Ensure your family and practice are protected no matter what life brings
At Portfolio Planning Inc., we work with top carriers across Canada to find the best-fit options for optometrists at every stage of their career.
Bonus Tip for Incorporated ODs: Use a Health Spending Account (HSA)
If you’re incorporated, and most OD’s eventually are you’ve got a powerful tax tool at your fingertips: the Health Spending Account (HSA).
Here’s how it works:
- Your professional corporation pays for eligible medical expenses (including prescriptions, diabetic supplies, and extended health services)
- Those expenses are 100% tax-deductible to your corporation
- You personally receive the medical benefit tax-free
This is especially relevant if you or a family member are diagnosed with a chronic condition like diabetes. Instead of paying out-of-pocket with after-tax dollars, run those costs through your CORP and turn them into a write-off.
You can even cover:
- Glucose monitoring systems
- Custom orthotics (for neuropathy or mobility issues)
- Dietitian or naturopath consultations
- Mental health support
If you’re not using an HSA, you’re likely leaving hundreds, or thousands of dollars on the table every year.
Living with Diabetes? You Might Qualify for the Disability Tax Credit (DTC)
If you’re already managing diabetes, don’t overlook the Disability Tax Credit, a federal benefit designed to offset the additional costs of daily medical care.
You may qualify if:
- You require life-sustaining insulin therapy
- Your treatment takes 14+ hours per week
- Your doctor certifies your condition via CRA Form T2201
How Much Is It Worth?
Depending on your province and income, the DTC can provide over $2,000 in tax savings per year. Even better, you may be able to retroactively claim up to 10 years, potentially receiving $20,000+ in refunds.
We help clients through the process of applying for the DTC and coordinating with their tax advisors.
Proactive Health Pays Off
What if you could get a free Apple Watch, discounts at GoodLife Fitness, and gift cards to your favorite brands, just for staying healthy?
That’s exactly what Manulife Vitality offers. If you’re considering insurance or want to make health tracking fun and rewarding, keep reading we’ll explain how this works in the next section.
Manulife Vitality: A Win-Win for Health and Wealth
Manulife Vitality is an innovative insurance program that rewards you for making smart health choices. Available with select life insurance and critical illness policies, it turns proactive living into actual savings and perks.
How It Works:
- Complete a simple health assessment
- Track your workouts and healthy habits via a fitness device
- Earn Vitality Points and unlock rewards
Benefits Include:
- Apple Watch for as little as $0 (just keep active to reduce the monthly cost)
- Up to 55% off GoodLife Fitness
- Gift cards for Amazon, Cineplex, Indigo, Starbucks, and more
- Premium discounts over time for maintaining good health
You’re already committed to wellness, now you can be rewarded for it.
It is always a pleasure connecting with many of you at the BCDO workshop webinars. Stay tuned for our next financial workshop, and reach out if there are any specific topics you’d like covered!
In the meantime, if you’d like:
- A free copy of the Portfolio Planning Retirement Planning Guide
- Help reviewing your insurance options
- Guidance on using your corp’s HSA to the fullest
email Portfolio Planning at info@portfolioplanning.ca who are here to help.
Portfolio Planning Inc.
Flat-Fee Financial Planning for BC Optometrists
info@portfolioplanning.ca