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Are Your Plans At Risk?

Are Your Plans At Risk?

No one likes to think about it but everyday Canadians are faced with medical emergencies and life threatening medical diagnosis. 

You work hard to achieve personal and financial goals.  However, sometimes, even the best laid plans hit bumps and roadblocks from time to time due to unforeseen emergencies.

Those failures in health; whether it is a broken leg skiing or a cancer diagnosis; become not only a health crisis but often a financial one too. Your lifestyle costs continue, and in many cases increase, at the same time that your ability to earn an income is reduced or even eliminated.

Is your financial plan, your future, at risk if your health fails?

How do we protect what you have worked so hard to achieve?

By looking beyond your financial plan’s retirement and savings components to identify areas of concern.  What impact would an illness or injury have on your current savings?  Do you have the resources to meet the many costs that may not be covered by your provincial and employee benefit plans?

What impact would one of these events have on your household?

  • A diagnosis of a life threatening illness (cancer, heart attack)?  Modern medicine has made tremendous leaps forward and survival and recovery rates for many conditions have vastly improved in the last decade. 

Are you in great health now?  The chances that you will recover is even better, but you are going to need the time and resources to focus on your health and wellbeing.

  • What else has modern medicine given us?  Time, and lots of it.  Healthy active Canadians are living longer.  In fact if you and your spouse are healthy when you retire at 65 the likelihood that one of you will live to the age of 90 is 63%*.  Is your financial plan not only ready for the longevity, but for the possibility that one of you will need assisted living at some point as you age?

*For Discussion purposes only.  Annuity 2000 mortality table, society of actuaries.

  • Off to a great weekend with friends on the ski hill?  What happens if a small tumble on the hill results in a broken bone?  Do you have benefits through work; are they going to cover not just the wages but all the additional recovery costs?  Is your spouse or another family member going to need time off work to help you out?  How do you replace their income?

You Have Options 

Once you see the areas of concern you can start to make a plan to address them. 

We can look at, and access the results of planning, or failing to plan, for the financial impact of a medical emergency a few different ways; you can self fund by using your current savings and RRSP assets to meet your needs; we can offload the risk with an insurance policy; or you can hope that ‘it won’t happen to me.’

What do each of those options look like when examined up close?

You’ve worked hard to accumulate your financial assets to provide yourself with the financial freedom and independence consistent with your long term goals (retirement).  When we don’t create a safety net to deal with a potential health crisis your retirement assets are most likely the ones that are going to be used to meet the unexpected costs.  But this ‘self funding’ is a slippery slope.  Consider what happens to your long term goals when your health recovers, is your financial plan going to be able to say the same?

Insurance can be a cost effective solution.  Scroll through the detailed descriptions below and you can see that there are insurance solutions that can be there to provide the cash needed when a health event occurs.

Yes, you can always assume that ‘it won’t happen to me,’ but if you stop and think about your family and circle of friends you can probably quickly think of at least a couple of people who have suffered a heart attack, been diagnosed with cancer or made a disability claim.   

For a quick look at your odds