Get Optimal Life Insurance Fit For Your Specific Needs
While we don’t always associate pre-mature death with loss of income, if the deceased was gainfully employed, the loss is very real. Aside from the emotional trauma, thankfully, loss of income as a result of loss of life is an insurable risk, with some exceptions and limitations. The magnitude of the financial loss can be very dramatic as the following chart illustrates.
Some Risk Are “Insurable Risks”
Chance of Loss
Let’s start out by identifying the areas in which you may be exposed to the chance of loss. Perhaps the most obvious is loss of property. Property would include your house, cottage, car, or your personal belongings. Thus, one example of loss of property would be having your house burn down.
Loss of Future earnings
Another type of loss, one which we hear more and more about today, is the loss of money or future earnings resulting fromyour personal liability for: personal injury you caused to someone else (someone slipped on your front steps); destruction of another person’s property (your son smashed your neighbour’s bay window); or an error in the discharge of professional responsibilities (as an accountant you made a mistake in working on an audit which resulted in a $500,000 lawsuit!)
Loss of income due to sickness or injury
As catastrophic as some of these losses may seem, many people face the risk of a much greater loss each day: the potential loss of income caused by sickness or injury resulting in pro-longed disability or pre-mature death. Consider for a moment what your ability to earn income might be worth.
Exposure to medical expenses
Another possible exposure is for medical expenses outside Canada (for example, you are hospitalized in Florida for two weeks as a result of a car accident and get a bill for $40,000). Each of these examples illustrates losses of money or future earnings. Fortunately, most of these “chances of loss” are insurable risks.
The Need For Personal Life Insurance
- Young Singles/Young Couples- cover off any debt including debts with co-signers, final expenses, does your family history have significant health issues?
- Young Family – debts, mortgage, final expenses, ongoing income needs, education fund
- Maturing Family- debts, mortgage, final expenses, ongoing income needs, education fund
- Pre-Retirees- debts, mortgage, final expenses, ongoing income needs, final taxes
- Retirees – debts, final expenses, leave a legacy, final taxes
Critical Illness Insurance*
Critical illness insurance is an insurance policy which will pay out a tax-free cash lump sum to you in the event that you suffer a major illness or health condition.
As life expectancy increases due to improvements in the early diagnosis and treatment of conditions such as heart disease and cancer, those living with the after-effects of such health problems have increased, and, for many, the burden of extra costs associated with such illnesses can be significant.
Such costs can include the need to make up for lost or reduced income while you were too ill to work (or for your spouse to take care of you), paying for caregivers, modifying or purchasing new cars, houses or other equipment to support your needs to name but a few.
Disability Insurance*
Your ability to earn income is your most valuable asset. Disability insurance is designed to protect you from a possible loss of income. What’s the possibility of this happening? Below are some statistics on disabilities occurring at different life stages.
It may surprise you that just over 1 in 4 of today’s 20 year-olds will become disabled before they retire.*
