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 tumour
  • Coma
  • Kidney failure
  • Loss of speech
  • Multiple sclerosis
  • Parkinson's disease
  • Severe burns
  • Occupational HIV infection
  • Cancer
  • Aplastic anaemia
  • 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.