Reading about insurance isn’t the most exciting topic, but we promise the couple of minutes it takes you to read this will be worth your time. Plus, you’ll come away with some helpful tips on how to choose the best insurance policy.
Reviewing your policies regularly is a good idea, and whenever you experience a life change like a marriage or an addition to your family, you may want to look at which insurance policy is meeting your needs.
Along with the usual suspects like car and home insurance, there are other important ones like life insurance, critical illness, disability and long-term care insurance.
Protect yourself with life insurance.
Life insurance is a big one because it can do so much to alleviate the financial burden on a bereaved family. Some people figure they’re covered through their work insurance but this usually isn’t enough. Buying your own policy when you’re young and healthy to travel with you throughout your career makes a lot of sense.
Consider critical illness insurance.
Unfortunately, death isn’t the only misfortune that can strike and cause financial distress. In fact, Canadians under the age of 75 are more likely to be diagnosed with a critical illness like heart attack, cancer and stroke than they are to pass away. And a good portion of mortgage foreclosures are due to critical illness.
Critical illness insurance protects you from the loss of income and high expenses that come with illnesses like these. A beneficiary is paid a lump sum after receiving a critical diagnosis so they can recover on their own terms. Benefits could allow them to pay for medicines and treatments not covered under group insurance or government plans. Likewise, disability insurance will replace a portion of your lost income if you’re unable to work for an extended period due to becoming disabled.
Don’t forget about long-term care insurance.
For those of us lucky enough to be healthy long into our old age, we should think about the cost of long-term care. Depending on the type, long-term care can be very expensive: private facilities can run more than $4,000 a month. As Canadians live longer with healthier lifestyles, the danger is that our living costs can outrun our savings, shifting the financial burden of care onto the family.
Finally, pay attention to the details. Don’t fib on your application and make sure you set up automatic payments for premiums, as untruths and missed payments can have serious consequences for your policy.
The thing you need to remember about insurance is that you have to get it before you need it. The old adage is true: An ounce of prevention is worth a pound of cure.