No one likes personal insurance…at least not until you need it.  Part of my job is to help clients think through some of their worst case scenarios to see how we can improve them.  We spend a few minutes considering those nightmares, and hopefully wipe away some of the stress that comes from trying to ignore them.

“Personal Insurance” is any kind of insurance that applies to you as a person.  This would include Life, Critical Illness, Disability, Personal/Extended Health, Travel Medical and Long Term Care.

Long Term Care Insurance is the least known type of personal insurance.  It is intended to provide support for an extended stay in a care facility, or in some cases covering at-home care.

Life Insurance is the most well-known personal insurance (it used to be called Death Insurance…can’t imagine why they changed that).  Typically we use Life Insurance to cover final expenses, mortgage and debts, survivor’s income and estate- or legacy-giving.

Disability Insurance is also well known, and is often provided through a strong Group Benefits plan.  Disability comes with loads of fine print, and you should make sure you understand your coverage before you need it.  Generally, Disability is intended to keep the lights on and food on the table if you’re unable to work.

Critical Illness Insurance is incredibly important, especially for young families and parents.  Getting sick can be terribly expensive, above-and-beyond time off work and outside of standard medical coverage.  For instance, you might have to install ramps and lifts in your home or vehicle, purchase experimental medications, travel for treatments not available in Canada, cover your partner’s time off work or a professional caregiver, pay for transportation and hospital parking.  These costs can quickly add up into the hundreds of thousands.

What you need to know about insurance

Life, Critical Illness & Disability are the Big 3 – let’s say we have a husband and wife, both 30 year old non-smokers.  They have a 12% chance of one of them dying before the age of 65,  41% chance of being diagnosed with one Critical Illness before 65, and a 62% chance of being Disabled for a period of time before 65.  That combines to a 76% chance of one of those things happening at some time before they turn 65.  For our Family, that is too scary to ignore…