John Lennon once said: “Life is what happens to you while you’re busy making other plans.” This rings true in many aspects of our lives – in our jobs, our families, our homes. And also in our investment plans, as we think about the future and how we will achieve our financial goals. But sometimes, things happen that can derail these plans and good intentions.Insurance is an important element of any good financial plan. It offers the security you need to protect yourself and your family against the costs of accidents, illness, disability, and even death. Unfortunately, buying insurance isn’t always a great experience. There are a lot of products on the market and a high volume of information online, making the insurance landscape a difficult one to navigate. The amount of paperwork involved in the purchase of insurance makes it a time consuming process, and high costs make it hard to know if you’re getting the best product and price for your needs.
At Invisor, we’re making purchasing insurance easy, with the launch of Invisor Insurance. Like our investment management advice, our insurance advice is completely independent and conflict free. We recommend products from the top names in the Canadian life and health insurance industry while operating as a completely independent insurance advisor. This means we choose the best products at the best price to fit you and your situation. Our platform allows us to leverage technology to make the purchase process as convenient and quick as possible, and our licensed insurance advisors have the experience to find the right solution at the right price. We’ll make sure your insurance experience is convenient for you, and that it fits in seamlessly with your financial goals.Do I really need insurance?
The short answer is yes. Nobody likes to think about the bad things that could happen to them, but the reality is we all can think of friends, family, or colleagues that have died or become disabled or ill. Ensuring you’re protected with the right type of insurance can make the difference between these events completely derailing the plans we have made, or being able to weather the storm and continue on our journey.
A recent study found:
- We are sitting at the lowest Canadian household life insurance ownership in 30 years
- 30% of households have no life insurance; 1 in 3 need more
- 45% of households need enough to replace 6.8 years of income; most own only 3.2 years
- 52% of Gen-Yers and 47% of Gen-Xers admit to being underinsured
*Source: LIMRA Canadian Billion Dollar Baby Revisited, 2014
There are three main types of insurance that we believe need to be considered when starting to think about your financial goals.
This insurance pays a lump sum benefit to the person of your choice, called a beneficiary, in the event of your death. The most common uses of the proceeds from life insurance policies are to pay off debt such as mortgages, cover final expenses like funeral costs and taxes, and to help your family replace the income that will no longer be received once you are gone.
Our most valuable asset it our ability to earn our income. What if this is taken away because of an accident or illness? Disability insurance replaces a portion of your pay if you are unable to work and earn your income. The monthly payments you receive can be used to cover expenses, and even future savings, until you are better.
Critical Illness Insurance
This insurance pays a lump sum to you in case you suffer a serious illness, like cancer, or have a heart attack or stroke. The list of covered illnesses is growing, and many critical illness policies offer schedules that pay various amounts depending on the severity of the condition. The cash received from Critical Illness insurance can be used to cover the increased expenses that you might incur, like medical treatment, hospital visits, etc., or to cover the wages of a loved one who may have to take time away from their job to care for you while you are ill.
In all the plans we make, planning to be protected should be at the top of our lists. Working with an advisor to find the right insurance plan will ensure a smooth process and alignment with your financial goals, and the peace of mind to endure all of life’s events – whether you’ve planned them or not.
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