Why life insurance and critical illness insurance are part of smart financial planning
You’re working hard to save for your future. You may have long-term goals, like saving for your first home or retirement. Maybe you’re saving for your next vacation or for something special you’ve always wanted. Whatever you’re saving for, your goals are important to you.
Setting your goals is an important part of creating a financial plan. It helps you focus your priorities, build a plan and stick to it. Protecting your savings is another vital step in creating your financial plan.
Preparing for the unexpected
We all know that market fluctuations and interest rates can affect your savings. Have you ever considered how your health can negatively impact your financial plans for the future?
No one wants to think about the possibility of having a heart attack or stroke or being diagnosed with cancer, but it could happen to anyone.
An illness can be life altering. It can also wipe out your life savings in a matter of months.
Government health plans may not cover all the costs associated with living with a critical illness. Out-of-pocket expenses could be significant and might include:
Cost of transportation and accommodation if you have to travel for treatment
Lost wages during recovery, for you and/or your spouse
The cost of prescription drugs and other therapies that may not be covered by your provincial or private insurance
Critical illness insurance and how it works
Equitable Life offers a critical illness insurance product that pays a lump sum benefit following a survival period of typically 30 days after diagnosis of one of the 25 conditions covered by the plan:
Heart attack
Alzheimer's disease
Bacterial meningitis
Coronary artery bypass surgery
Heart valve replacement
Loss of limbs
Motor neuron disease
Paralysis
Stroke
Aortic surgery
Benign brain tumor
Coma
Kidney failure
Loss of speech
Multiple sclerosis
Parkinson's disease
Severe burns
Occupational HIV infection
Cancer
Aplastic anemia
Blindness
Deafness
Loss of independent existence
Major organ transplant
Major organ failure on waiting list for transplant
You can use the benefit payment any way you want so you can focus on recovery. Critical illness insurance can help:
Keep you and your family in your home
Keep your business viable
Cover the cost of extended health care requirements
Allow you to undertake out-of-country or alternative therapies
Allow you to take a leave from work to care for a sick child
Talk to your advisor about having a plan tailored to help meet your specific needs.
Protecting your loved ones
Life insurance is a fundamental part of any financial plan. With a life insurance plan in place, you’ll have peace of mind knowing that your loved ones are protected.
Consider the impact on your family if you were to die without life insurance.
Could they cover funeral costs and final expenses?
Could they afford to stay in their home?
Could they continue to save for the future?
Could your children afford to pay for their education?
A life insurance policy can help ensure your family has the money they need to carry on without worrying about financial burdens. The benefit from a life insurance policy can help replace your income, set up an education fund for your children and pay any taxes owing on your estate.
Talk to an advisor to determine the amount of insurance and the type of policy that’s right for you and your family.
Doreen Yeow Tel: (778) 895-8010 E: yeowlfd@shaw.ca
(Courtesy of Equitable Life of Canada)
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