Play with Fire and Ignore the Possibility of Disability

Dr. S. S. Hueber chillingly describes prolonged disability as “living death” and surely it is that. For when a man or woman is disabled and unable to work, the ability to earn income stops.

…and what is income?

The foundation of hopes, plans, dreams
The source of the family’s well-being
Food on the Table, a roof overhead, clothes for the family
The car, TV, comfortable furniture, appliances
Recreation and vacations, the joyful times and the quiet times spent with the family

How can a family’s breadwinner let one day go by without insuring his or her income – the source of all the necessities of life and all the good things that make life worth living?

When the breadwinner dies, income stops, but what also stops, is the need for money to keep him or her alive.

When disability strikes income stops, but the need for money to keep the breadwinner alive does not. In addition to the basic necessities of life, medical attention is needed. Medical expense insurance – even the best plan – will not pay all of the doctor bills, hospital bills, drugs, medicines and hundreds of other items.

The high cost of death is insignificant compared to the high cost of staying alive.

Yet every day, millions of breadwinners face the threat of living death with little or no protection. They are vulnerable. They gamble with fate, and the stakes they play with are the highest anyone can own – financial future and the economic well-being of their families. Some may have group policies, but they don’t really know what the benefits are and for how long. Typically, they brush off any entreaties by financial planners to help them, only to find that it only pays them a small amount they can’t live off of and even then for a short time.
People buy insurance on their homes, cars, golf clubs, cameras… and yet so many times they fail to protect what has been called their most precious asset – their ability to earn income. If you had a machine in the basement that cranked out your income every two weeks, I bet you would insure it… and keep it well oiled.. and very well maintained…Well Guess What , that machine is YOU!

If one of my good clients became disabled, unable to work, feeling fearful for lack of money and the idea of having mounting unpaid bills, I’d like to be able to say “Don’t worry about money. That income policy we put in place is going to deliver a nice cheque to you, month after month, as long as you’re disabled?”

Remember, those that need insurance can’t get it, so you had better get it before you really need it!!

John Scholl
Financial Advisor - Desjardins Financial Security Inc.
CFP, CLU (Chartered Life Underwriter), CGA, B. Math., EPC
W – 416 743-1239
C – 416 731-3660

Long Term Care is Essential to Retirement Plan

If you fall within the Baby-Boomer or Gen X groups, you'll count among 9.8 million senior citizens by 2036, according to Statistics Canada. And if you're currently between the ages of 40 and 60, you've started planning for retirement by putting money away in an RSP or pension.

For some, this is the extent of their planning. Not many people consider what might happen if they become sick with a chronic illness. Current research shows that chronic illnesses like Alzheimer's will be become more prevalent over the next 30 years. In fact the Alzheimer Society of Canada predicts that 1.2 million Canadians will suffer from dementia by 2038, which means that the need for long-term care services will increase. Currently, assisted living services can cost up to $50,000 a year. In the next 20 to 30 years, it's expected that the need and cost for these types of facilities will increase substantially.

But taking time now to plan ahead is key to ensuring that you and your loved-ones won't become financially burdened if you lose your independence during retirement. Here's some facts about long term-care insurance:

What is long-term care insurance?
Long-term care insurance protects the insured and their family from financial hardship due to unforeseen medical and/or living expenses related to critical illness, which results in the loss of independence.

How much does it cost and how long would I need to pay?
The cost depends on several factors like your age, health, the insurance provider and the type of policy that you select. Some policies are set up with 20-year or lifetime periods. The actual term of the insurance will depend on the supplier and the policy.

Who's eligible for this insurance?
Anyone between the ages of 18 and 80 is eligible. However, people in their 40s and 50s should consider including it as part of their retirement plan.

Under what circumstance would I receive a payout from this insurance?
During your retirement, the insurance would payout if you became sick with a chronic illness that prevented you from living independently. This is determined if you are unable to eat, dress, move, use the toilet or bathe by yourself.

What does long-term care insurance cover?
Once it's been determined that you're no longer able to live independently, long-term care insurance will help pay for:
• Expert medical advice
• The ability to live at home with in-home and/or respite care
• Assisted living and long-term care facilities
• Senior day-care

How is it paid out?
Long-term insurance pays a tax-free monthly benefit that can be used to pay for any type of service that you choose. There's no need to submit receipts or wait for approval.

Which policy offers the most appropriate coverage?
Speak to your financial advisor to find out what would be best for you. That can only be determined once a full financial analysis is completed.

John Scholl
Financial Advisor - Desjardins Financial Security Inc.
CFP, CLU (Chartered Life Underwriter), CGA, B. Math., EPC
W – 416 743-1239
C – 416 731-3660