Personal Insurance

Disability Insurance

Everybody understands the value of life insurance and most of us who take our finances seriously have a solid life insurance policy in place. But what happens if you are unlucky enough to sustain a serious illness, chronic disease or disability which prevents you from working? Such a scenario could be disastrous for your family finances and this is where disability insurance comes in.

What is disability insurance?

Disability insurance provides you with a portion of your income in the event that you suffer from an illness or accident which means that you can’t work, either temporarily or on a permanent basis.

Factors to consider when taking out disability insurance:

• How much do you or your family depend on your income?
• How much does your company plan protect you?
• Terms and conditions of the policy- Including how disability is defined, which conditions are eligible and which are excluded and if pre-existing conditions are covered and, if so, to what extent.
• Policy premiums- Including the total cost of the policy and whether contributions are still required if you are diagnosed with a disability and claiming on the plan.
• Benefits of the plan- Including the level of benefits you will receive, whether they are adjusted for future inflation and whether they are taxable, any waiting periods for receiving premiums and how a disability is diagnosed.
• Group plans- Including how the plan is funded (by an insurance company or self-funded by your employer), how your benefits will be affected if the company goes bankrupt and how your coverage will be treated if you leave your job.

Talk to us, we can help determine what makes the most sense in your situation.

Critical Illness Insurance

Critical illness insurance is an insurance policy which will pay out a tax-free cash lump sum to you in the event that you suffer a major illness or health condition. As life expectancy increases due to improvements in the early diagnosis and treatment of conditions such as heart disease and cancer, those living with the after-effects of such health problems have drastically increased. For many, the burden of extra costs associated with such illnesses can be significant. Such costs can include the need to make up for lost or reduced income while you were too ill to work (or for your spouse to take care of you), paying for caregivers, modifying or purchasing new cars, houses or other equipment to support your needs.

With the Canadian Cancer Society recently reporting that the survival rate for cancer is now over 60%, and many other cancers far exceeding this rate, considering how you would cope financially in such a situation has become a pressing concern for many.

Below are some key features of critical illness insurance policies:

• There is usually a waiting period on the policy – i.e.: a time by which you must survive your illness following the initial diagnosis before the policy will pay out. This is usually very short, often between 30 and 90 days.
• The policies usually cover most major illnesses. This include serious heart conditions, cancer, strokes, blindness, deafness, paralysis and others.
• There are no restrictions on how you use the payment. Once the lump sum has been paid to you, you are free to use it as best suits you and your family. It is known as a “living benefit” as the lump sum is paid to you as the policyholder, instead of to a beneficiary.
• In contrast to disability insurance, critical illness insurance is paid even if you are able to return to work following your diagnosis.

Talk to us, we can help determine what makes the most sense in your situation.

Managing Your Finances

Managing your finances raises a number of topics. None are as tricky and potentially unpleasant as planning for your family and finances in the event that you pass away or become incapacitated. Understandably, these questions are often ignored by many – but don’t fall into the trap of avoiding these difficult matters. Good estate planning will help to make sure that your wishes are carried out and that your family and assets are well protected.

With this in mind, let’s take a look at the key areas that you should consider when designing your estate plan:

• Choosing a guardian
• Life insurance and trusts
  • Life insurance gives your family the financial security to continue their standard of living and  to fulfill their dreams in the event that you are unable to provide for them yourself. Life insurance payouts can be used in various ways, including paying off debts, paying for college education, or simply helping with general living costs.
• Choosing someone to make decisions on your behalf
• Will, trusts, and beneficiary forms

As with any financial arrangement, changes over time, not only in process and legislation, but in your own personal situation, mean that it is imperative to keep your estate planning strategy under review and regularly updated to ensure that it’s a fit for its purpose and accurately reflects your wishes.

Insured Retirement Program

There are a number of vehicles available for individuals to save in a tax-efficient manner for their retirement – from employer sponsored pension plans to government plans, RRSPs (Registered Retirement Savings Plans) and TFSAs (Tax Free Savings Accounts). For those who earn a higher income, have maximized their current retirements plans and wish to contribute more, options can be limited. The insured retirement program is an effective way to bridge the retirement savings gap for such individuals in a cost-effective way.