Those familiar with me in business know that I’m not about the cheesy sales pitches. I’m more about awareness and education, so I want to highlight a few real life cases I’ve encountered in my business in the past year.
Published in a report by Canadian Life and Health Insurance Association, there were 22 million people in Canada covered by life insurance in 2015. Are you one of those 22 million? Life insurance is a protection that everyone will use, but how do you determine if you need life insurance?
My general rule is to have a minimum amount to cover final expenses. If you have people you love in your life, you don’t want to leave them with a financial mess to deal with, so securing protection to cover everything (uninsured debt, final expenses, etc) that you would leave behind is a place to start.
Different life stages and financial situations call for different levels and kinds of insurance coverage.
To start your Financial Protection Planning, get it while you’re young, healthy, and coverage is cheap!
Recently I’ve encountered three separate cases where life insurance was not in place, and there was a risk of the individual never being able to qualify for coverage. The most unfortunate was a client who had inquired about life insurance coverage for her aging mother, so that she wouldn’t be left with any financial burden.
All the information needed to make a decision was provided, however they put it off for a year only to reconnect on the matter when her mother was now ill. Since the potential applicant had been diagnosed with cancer, she would not be eligible for any coverage. If they had applied for the coverage when it was first discussed, this could have been avoided and they would have been able to secure coverage when her mother was still healthy.
The time is now!
Generally people can get behind life insurance, because we’re all going to pass away at some point. But what about living benefits such as Disability and Critical Illness Insurance?
When you’re busy with the daily grind, the thought of illness or injury is furthest from your mind. IF something did happen and you weren’t able to work for more than a month, would your family’s financial position be affected?
Your most important asset is your ability to earn an income. A good financial rule is to have 3 months living expenses saved for an emergency, but do you? And if so, what happens at month 4 when you’re still unable to return to work and earn an income?
If you’re a business owner you have even more to consider, such as the continuation of your business, the role you have within your business, if you have employees how they’re going to be affected, and so much more.
Although you may not think that an injury or illness is going to happen to you (because we’re all Wonder Woman or Hercules), isn’t it better to be safe than sorry?
I had a case where a person was referred to me for disability coverage, but had “too much going on” at the time to really move ahead with it. A year later when I followed up, the gentleman was off work on disability, and said “I guess I should’ve got the insurance policy last year after all.”
Lessons learned? Make the time, make it a priority for right now so that you never have to think about it again. Besides, as your independent financial adviser I do all the heavy lifting – you just have to meet and answer some questions.
You buy insurance for your car in case of an accident, and for your home in case of damage, so why wouldn’t you buy insurance to protect your most important asset?
If you’re reading this and are without life or living benefits coverage, contact me and we can easily review your needs and see where this insurance coverage fits within your Financial Protection Plan.