risk death, disability, and illness everyday of our lives.
We never know when fire, theft, vandalism, illness or other
forms of despair will touch our lives. Our losses can be emotional,
psychological, or financial and can range from minor to catastrophic.
We can never totally remove the risks, but we can reduce their
impact on our financial well being and on those we love by
carefully preparing a risk management plan. Risk management
primarily deals with:
of Death: The risk of financial loss through death is essentially
the risk of the loss of the income of the “bread winner(s)”
of the family. Life Insurance provides a way of managing the
risk of death.
The risk of disability is much higher than the risk of death.
The disability on an income earner results in the partial
or total loss of this income for the duration of the disability.
Not only does a disability decrease or eliminate income, it
can also cause an increase in expense. For example the family
may incur the additional cost of paying for attendant care,
medication, and equipment not completely covered by provincial
health plans. Disability Insurance provides for covering this
of Health & Long Term Care:
Long-term care insurance is a recent innovation, prompted
by the enormous costs that can be associated with the health
care needs of the aged. With the increase in life expectancy
and improved medical care, people are living longer. Recent
statistics have suggested that 225,000 Canadians turn 65 each
year. The financial obligations of caring for yourselves or
an elderly parent over a long term can wipe out an individual’s
life savings, impoverish the patient’s spouse, and impose
hardships on one’s family. Even worse, the appropriate professional
care may not be affordable.
of Critical Illness:
According to recent statistics, Canadians are 10 times more
likely to be unable to work due to a critical illness than
die before the age of 65. This growing concern has led a number
of insurance companies to offer separate coverage for Critical
Care Insurance. The main benefit of having Critical Illness
Insurance is that when a critical illness is diagnosed which
is covered for under the policy, the insured receives a lump
sum to use whichever way he sees fit. This coverage essentially
provides a cushion for the consumer, which fills the gap between
government and group disability insurance. Another advantage
is that it is available to those who are self-employed, and
to those who may not meet the requirements for Disability
trick to managing the insurance continuum is to be covered
today for what's important today, and to have an eye on what
may be important tomorrow. Make insurance work for you, and
not the other way around.
The information contained in this commentary is designed
to provide you with general information only, and is not intended
to be comprehensive advice applicable to the circumstances
of any individual. We strongly urge you to seek professional
assistance before acting upon information included herein.