Managing the neglected hazards
It is easy to recognize the value of insuring your life, home and possessions, but more difficult to recognize the need for secure coverage in anticipation of disability or critical illness. These events have become the "neglected hazards" of personal financial planning.
The hazards
Disability and critical illness insurance are not interchangeable. They require different solutions.
Disability insurance is designed to replace lost income should you become ill or injured and unable to earn an income for an extended length of time. It provides a regular stream of income for you and your family to meet ordinary expenses, such a housing and food.
Critical illness insurance pays out a lump-sum benefit should you be diagnosed with any number of specified illnesses (including cancer, heart attack, stroke, paralysis and so on). You can use this money however you like: to invest it to produce an income stream; meet unexpected expenses such as medical treatment not covered by provincial health care or private plans; pay down your mortgage, or support your business while you recuperate.
Are you covered?
If you have group disability coverage through your employer, it may not be sufficient to meet your needs. If you leave the company, you leave the plan as well. Professionals and independent business people should seek out independent coverage. Individual policies may be more expensive than group coverage, but the potential cost of not having coverage when you need it is much higher. On the plus side, individual policies are more readily tailored to meet your unique needs.
Speak to your Investors Group Consultant to find out more about incorporating disability and critical illness insurance into your overall financial plan.
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This article, written and published by Investors Group Financial Services Inc., is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant.
© Copyright 2007, Investors Group. All rights reserved. Do not reproduce without the express written consent of Investors Group.
