Let’s face it, raising a family today can be financially challenging. The cost of living continues to increase, housing costs are rising along with education and extra-curricular activities for our children. It is tough to make ends meet and still have something left over at the end of each month.
Most families today require both parents to work to afford the lifestyle they enjoy. Losing one of those incomes through premature death, illness or a disability is a real risk that many families would have a difficult time facing emotionally and financially.
How do you protect your family?
- Life insurance is designed to protect your family by providing the resource to replace income, pay off debt, and fund future education costs in the event that one of the parents dies.
- Disability, or income replacement insurance, is designed to replace lost income if an individual is not able to work due to accident or sickness.
- Critical Illness insurance will pay a lump sum benefit in the event of a diagnosis of many major illnesses.
The Sandwich Generation was a term coined by Dorothy Miller in 1981 to describe adult children who were “sandwiched” between their aging parents and their own maturing children. There is even a term for those of us who are in our 50’s or 60’s with elderly parents, adult children and grandchildren – the Club Sandwich. More recently, the Boomerang Generation (the estimated 29% of adults ranging in ages 25 to 34, who live with their parents), are adding to the financial pressures as Boomers head into retirement. It is estimated that by 2026, 1 in 5 Canadians will be older than 65. This means fewer adults to both fund and provide for elder care. Today, it is likely that the average married couple will have more living parents than they do children.
What are the challenges? Read more
Whenever the topic of Long Term Care Insurance (LTC) is brought up, most people’s reaction is to automatically assume the discussion is about caring for the elderly. While it is true that LTC coverage is a valuable tool to provide the necessary funds for when we are no longer able to care for ourselves, it should not be overlooked for younger people who are in the prime of their earning years but are unable to purchase the amount of disability insurance that they desire.
LTC insurance pays a monthly benefit to an insured who is unable to perform at least two of the six activities of daily living without assistance. The activities of daily living are bathing, dressing, toileting, transferring (bed to chair or vice-versa), continence and eating. It also pays a benefit in the case of cognitive impairment. Anyone who has been in a serious accident, took a bad fall on the ski slopes, or suffered a debilitating illness or condition could probably have received a benefit from a LTC insurance policy if the condition lasted longer than the waiting period of the contract. Read more
What you need to know about your Group Long Term Disability
Having a source to replace your earned income in the event of an illness or accident is vital considering that on average, 1 in 3 Canadians will become disabled for a period of more than 90 days at least once before the age of 65. For those that are disabled for more than 90 days the average length of that disability is 2.9 years.
If you are one of the approximately 10 million Canadians covered under a group Long Term Disability plan (LTD) it’s important to understand what your coverage provides. Don’t wait until after you’re disabled to read the employee handbook, because you could have a few surprises! Read more