Insurance Planning

INSURANCE PLANNING

Insurance planning is a critical part of your financial plan.

Having a family and a thriving practice is rewarding, but it can also make you worry about financial hardship. The chances are high that you may become sick, injured, or suffer from a critical illness or even death. If this happens before you have a protection plan, one or all these things could quickly derail what you have worked so hard for. The good news is that there are many ways to protect yourself, your family, and your business from financial hardship.

When it comes to financial protection, nothing is more important than insurance. These four types of insurance coverage can help protect your family’s finances and ensure peace of mind.

Health insurance
Disability insurance
Critical illness insurance
Life insurance

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health insurance

Health insurance plans are an essential part of every Canadian household. While the Canadian government provides citizens with basic health care coverage, they do not cover all costs associated with high-quality medical care, so a supplemental insurance plan is often required to fill in the gaps such as:

Prescription drugs
Dental care
Vision care
Treatment by a specialist (chiropractor, physiotherapist or psychologist etc.)
Semi-private or private hospital accommodations

Health insurance can help protect you and your family from unforeseen medical bills and many other benefits that may be right for you. However, with different types of plans available, one is bound to suit your budget and needs.

You may consider a Health Spending Account (HSA) for incorporated professionals and business owners. It allows you to expense 100% of your personal medical costs through your corporation. In addition, the funds submitted through the HSA are 100% tax-free to you and 100% tax deductible for your company.

Prescription drugs
Paramedical expenses
Dental
Vision

DISABILITY INSURANCE

If you were to become disabled, would you be able to keep up with your bills?

Disability insurance helps you meet your financial obligations if you cannot work due to an injury or sickness. Disability insurance is a form of insurance that provides coverage in the form of payments during periods when you cannot work. For example, if you become injured and cannot work for more than 90 days, disability insurance would cover additional living expenses and revenue until you can return to work or find other sources of income if necessary.

Most people’s greatest asset is their ability to earn a living. Suppose that ability is taken from you through an illness or injury, and you cannot work. In that case, disability insurance can make the difference between having enough money to pay your bills and going into financial ruin. In today’s competitive economy, it is vital for business owners and anyone responsible for supporting themselves or their family to have strong disability coverage.

Given that you will most likely face a disability during your working years, it’s essential to take steps to protect your financial future.

Unfortunately, nearly 50% of all individuals 35 or younger will be disabled for 90 days or longer before age 65. 1

Approximately 30% of people aged 35 – 65 will suffer a disability for at least 90 days, and about 1 in 7 can expect to become disabled for five years or more. 2

Regarding protecting your financial future, disability insurance is a must. Consider the odds…During your working years, you will likely face a disability.

We can help you with your disability insurance coverage and explain the different features of coverage that might make sense for you.

CRITICAL ILLNESS INSURANCE

Your business should already be protected with the correct general liability and property insurance. If you’re ever diagnosed with a heart attack, stroke or cancer, your business’ revenue could suffer.

Critical illness insurance gives you the peace of mind that if you become diagnosed with a serious illness, you’d be covered – without having to worry about paying upfront. With critical illness insurance, your lump sum benefit would be tax-free and can help cover costs not covered by our public health care system. This could mean that you won’t need to take out a personal loan, dip into your RRSPs or rely on family to support you while you’re recovering or receiving treatment.

Many critical illness insurance policies come with a return of premium policy that returns your premiums if you make no claims. We can explain this feature to you, as well as what amount of coverage we recommend.

LIFE INSURANCE

Business owners may be tempted to neglect the importance of life insurance, but it is crucial for your business. Life insurance can provide financial security and peace of mind, especially if your business is financially dependent on you.

As a business owner, you understand that your company relies on you – and its employees. If the unexpected happens, your family could be financially burdened. Life insurance is essential in a buy-sell arrangement or critical person coverage.

Life insurance offers financial protection for your loved ones when you cannot provide it. There are two main types of life insurance – term and permanent. Term life insurance covers a set period, such as five or ten years, after which you can renew the policy or convert it to permanent coverage. As a result, premiums are initially lower than for permanent life insurance.

Permanent life insurance is a type of life insurance that provides you with coverage for your whole life. Permanent life insurance can be used to cover final expenses and final taxes. There are also permanent life insurance policies that act as an investment vehicle allowing you to contribute additional funds to the policy, where it grows tax-free. Those funds can be used to supplement your retirement or grow your business.

When you must plan for the future, it is vital to make sure that you have sufficient coverage. We can help you determine what insurance is best for you and how much coverage you need. So, reach out to us today and gain peace of mind.

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