“You can’t insure a house that is already burning. By then it’s too late.” That’s how I tell my clients to look at the different types of disability and critical illness insurance. You need to consider these products early in life. As you get older, the premiums get more expensive. The key is to have these financial supports in place before you need them.
Disability Income Replacement
If you are self-employed, a business owner or entrepreneur, or an employee without a group plan, I would like to talk to you about the very real possibility of loss of income due to disability or critical illness. Loss of earning income can place terrible pressures on you and your family at a time when your energy will be focused on rehabilitation and recovery. Disability income replacement is an important part of your financial planning. If you’re not sure you need this type of coverage, ask yourself:
- How long can I continue paying my monthly bills if I’m not earning an income?
- Who will support my family if I am not earning an income?
- How will my business continue to operate?
- What additional costs are associated with my disability?
When you purchase disability income replacement insurance, you receive a monthly benefit to replace your income and cover all your expenses during your recovery from a disability or critical illness.
Let’s talk about disability income replacement insurance.
We all know cash is no cure when someone becomes ill. But if you do become sick with a condition such as cancer, multiple sclerosis (MS), heart attack, or stroke, you can be prepared for the financial implications if you have critical illness coverage.
I think of this insurance as a type of safety net. If you are self-employed or are not protected by a group plan, the one-time, lump-sum payment can help you maintain some financial control in the period after you’ve been diagnosed. It will pay for things like home care, child care, or travel outside the country for specialized treatments that are not available locally. It can even be used to supplement the income of a family member who takes time off work to care for you.
Critical illness insurance, like income replacement coverage, is a living benefit. In other words, it provides you with some security and options while you and your loved ones are figuring out significant critical health changes in your lives.
Let’s talk about critical illness insurance.
Loan and Business Expense Coverage
You’ve planned ahead for your family or business by purchasing disability income replacement insurance, supplemented by critical illness coverage. That’s terrific—and may be all the coverage you need to be prepared for significant changes in health and ability.
Depending on other factors in your personal and business life, however, you may want to consider other coverage. If you have business or personal loans, a large line of credit, or ongoing business expenses, you may want to purchase loan or business expense coverage.
The Canadian Health and Life Insurance Association encourages you to consider a few scenarios:
“When you can’t work, routine bills can quickly eat up your investments, RRSPs, and even home equity. And if you miss quarterly income tax instalments, the Canada Revenue Agency can demand full payment plus interest after one year . . . and garnish your disability benefits. Finally, worried creditors can force you into receivership or bankruptcy.”
Do any of these areas raise red flags for you?
I’d like to sit down with you and take a careful look at the ongoing expenses, overhead costs, and loans you have. Together, we can tailor a plan to make sure that, along with income replacement, you have the coverage you need to protect you, your family, and your business partners.
Let’s talk about disability loan coverage and business expense coverage.
Long-term Care Insurance
We are all living longer and healthier lives than we used to. How wonderful—more time to watch our children grow up, our grandchildren play, and our business interests flourish!
But as we age we are also susceptible to more health problems—and we have more years ahead when we aren’t earning an income. Have you considered these factors in your retirement planning?
I’d like to meet with you to see if you are prepared to meet your long-term care needs. For some of you, the income replacement coverage you’ve purchased will become your long-term care plan, providing you with the income you need to ensure you are living comfortably and are taken care of in your later years. For others, long-term care insurance is needed to ensure you will be able to care for your elderly self, without putting a burden on your family.
Let’s talk about long-term care insurance.