It’s easy to feel invincible when you’re healthy – and let’s hope you stay healthy for a long time. But what if the unthinkable happens and you become disabled or critically ill? Who would continue to provide the income that supports your family’s lifestyle and provide vital essentials like food and shelter?
There is a living benefits insurance that fits your needs and provides financial security for the tough times along with peace of mind for the good times.
Disability insurance can provide a source of income should you become unable to earn a living because of an injury or accident. Using savings, drawing from investments held in your RRSP or going into debt to finance your loss of income can significantly impact your current lifestyle as well as your plans for the future. For business owners, disability insurance is essential to avoid the personal financial losses that can be fatal to your business. The benefits from a personally owned disability plan will be tax-free and will continue during the benefit period while one is disabled.
Critical illness insurance complements the benefits available from a disability plan by paying out a lump-sum of money if you contract a specific life threatening illness, such as cancer, stroke, or heart attack. You can use the funds to pay for treatment, subsidize your income or even to pay off your mortgage, personal or business loans.
Many Canadians assume our healthcare system will pay all their expenses if they become critically ill but some medications aren’t covered, nor are additional expenses like travel, daycare and homecare.
Long term care insurance pays out benefits for those requiring homecare including medical care, nursing care in the home, homemaker services, respite care for caregivers and any other costs that may arise during the period of impairment.
It is widely assumed that all longterm care services are paid for by the provincial health care systems but this is not the case. The reality is that many necessary services are often in excess of government aid and can add up to $4,000 in monthly longterm care costs.
Living benefits insurance coverage can help you control your future and protect your family’s financial health. However, the available type of benefits and options can vary, which is why you should discuss your needs with your professional advisor who can help you get the coverage that’s best for you.
Liz Findlay is financial consultant with Investor’s Group She can be reached at 204-786-2708.
This column presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group consultant.