Calgary Financial Planner
Insurance is a meaningful way to protect your family and your business from financial hardship.
Getting insured before an emergency strikes is vital, as it can be difficult to make clear-headed decisions about insurance plans during times of crisis. Here are four common types of insurance to consider:
The Canadian government provides basic health insurance to all citizens, but many services are not covered under these plans. Supplemental health insurance can help cover the gaps, such as prescription drugs, dental care, vision care, and treatment by specialists. Healthcare costs continue to rise, and health insurance can help protect you and your family from unexpected medical expenses while minimizing the impact on your bottom line. Many different health insurance plans are available, and by working with us, we can help you find the right coverage for your needs.
Disability insurance covers lost income if you or a loved one become disabled and are unable to work. It can be significant for business owners, but anyone who supports themselves or their family should consider it. Approximately 30% of people aged 35 – 65 will suffer a disability for at least 90 days, and about 1 in 7 can expect to become disabled for five years or more. Disability insurance can mean the difference between having enough to pay your bills and financial ruin. Your greatest asset is your ability to earn a living, and disability insurance can help protect that asset. There are different features of disability insurance policies to consider, such as the length of the benefit period and the percentage of income covered. Again, working with a professional can help you find the right coverage.
Critical Illness Insurance
Critical illness insurance provides a tax-free lump sum of money if you are diagnosed with a serious illness such as heart disease, cancer, or stroke. These illnesses are common in Canada – about 1 in 12 Canadians is living with heart disease, approximately 1 in 2 Canadians will be diagnosed with cancer in their lifetime, and about 741,800 Canadian adults live with the effects of a stroke. With critical illness insurance, you’ll receive a lump sum of money that you can use any way you see fit. This can be especially important if you’re self-employed and don’t have group benefits to help tide you over if you can’t work while recovering or receiving treatment. You may also want to use the lump sum to pay for treatments that the public health system doesn’t cover. In addition, many critical illness insurance policies come with a return of premium feature that returns all premiums paid if the policyholder doesn’t make a claim.
Life Insurance is essential for protecting your business and your loved ones. It provides a tax-free lump sum payment to your business in the event of your death, helping to ensure that it can continue to thrive. There are two main types of life insurance: term and permanent.
Term life insurance provides coverage for a set period of time, such as five, ten, twenty, or thirty years. Premiums are typically lower than permanent life insurance, but they may increase as you age or your health deteriorates. Term life insurance is a good choice for covering temporary needs, such as a mortgage or debt, or providing children with financial support.
On the other hand, permanent life insurance provides coverage for your entire life. While premiums may be higher at the outset, permanent life insurance is typically less expensive in the long run compared to term insurance. It can also cover final expenses and taxes. In addition, some policies offer investment options that allow you to contribute additional funds that grow tax-free and can be used to supplement your retirement.
Life insurance is essential for business owners who may wish to use it for a buy-sell agreement or key person arrangement. The death of an owner or key employee can significantly impact the financial health of a business, and life insurance can help mitigate this risk.
Work with us; we can help you determine the right type and amount of insurance coverage for your needs. Don’t wait until it’s too late – get the insurance coverage you need today.
1 Source: 1985 Commissioners Individual Disability Table A
2 Source: Health Insurance Association of America; The New York Times, February 2000; As published in The JHA Disability Fact Book, 2003 Edition
3 Source: https://www.canada.ca/en/public-health/services/publications/diseases-conditions/heart-disease-canada.html
4 Source: https://www.cancer.ca/en/about-us/for-media/media-releases/national/2017/canadian-cancer- statistics/?region=on
5 Source: https://www.canada.ca/en/public-health/services/publications/diseases-conditions/stroke-in-canada.html