Are you sufficiently covered?

by wtfcanada2015@gmail.com | Jan 15, 2019 | BLOG

According to a survey completed and published by Insurance Business Canada only 15% of Canadians surveyed said that they were confident that they feel ‘very prepared’ financially if the get too sick to report for work.
23% of Canadians answered that they are not at all prepared financially if they pass away too soon, the study also discovered. Only 16% said that they have purchased life insurance that would cover their remaining mortgage payments should they ever pass away.

If like me you can sometimes feel somewhat sceptical about stats it does however strike me that far too many of us are not prepared for the unexpected, the chances of experiencing a financial loss if you are unable to work due to injury or illness are frankly very worrying.
There are of course a number of reasons that can be attributed to this; perceived cost, understanding of coverage, availability, where to get it.

As someone who works largely with Income Protection Insurance and other living benefits my advice would be to work with a broker, a broker works for you their client and not a specific insurance company this means that they can take the time needed to understand your needs and then advise you as to the best options available from the very many insurance companies.

Insurance has to be exact and legally binding for your own protection but it does not need to be difficult to understand, when you work with the right broker it will be explained clearly and without jargon so that you have the peace of mind of knowing that if and when the time comes you and your loved ones will be properly protected.

We all know that at some point we will die and we hope that it is at a ripe old age and so we can more readily accept the need and payout of life insurance.

Income protection of the other hand is a different story because we are more easily swayed that we will be fine because;
• ‘I’m a healthy person’
• ‘ I’d just carry on going to work’
• ‘I can’t afford it’
• ‘I’ll dip into my savings’
• ‘my family will help’

The reality is that if we lose our ability to work and earn a living everything else will suffer, friends and family while might be willing to help will usually themselves be using all of their income for their own needs. Savings will be depleted this will have a negative impact on the subsequently growth of any capital that was invested and there will also be tax implications of withdrawing from your RRSP.

The bills will continue to come in and the family needs will not be reduced in fact if you have a family member in need of medical care it is more likely that the other wage earner in the family may need to take time away from work to become a carer, long or short term. If you are self-employed you may need to employ someone to carry work load of the lost worker, you.

When I am speaking with clients about their need for Income Protection far too often I am asked to complete insurance for them for accident coverage only. It is my job and ethical responsibility to explain the pit falls of this choice, what if you get sick? It might be that you are newly starting in business and so may need to start at a lower amount than you would like in order to suit your budget or that money is tight. Start where you can and work your way up to where you need to be if you have to. Just don’t have nothing.
If I were to ask you how many reasons do you think there could be for not being able to go to work what would you say?

The answer I give is easy, it’s 2, if you become injured or if you become ill. It’s that simple. If you can’t work how will you keep the lights on, put food on the table and keep your home warm or even just keep your home.
I could quote stats again but I don’t need to, I have firsthand experience of having to remind clients or their partners that no they are not covered for the sickness that has befallen them because they wanted to wait and add it later or they just didn’t think they needed illness coverage.
It is the worst, the very worst phone call because by the time I receive it it’s too late, there is absolutely nothing that I can do about it.

The solution to making sure this is not you is simple:
1. Work with a broker that you like and trust.
2. Get insurance while you are healthy if you can, but you can still get good coverage if you have pre-existing conditions.
3. Review your coverage regularly
4. Just don’t have NOTHING, please.
Be prepared for the unexpected and rest easy with the peace of mind that you and your family will be financially secure when the time comes.
Make the call today to speak to a trusted adviser.