Wealth Protection
Having insurance coverage is an essential part of the financial planning process.  Life is never risk-free, but  acquiring the right insurance coverage can ease the financial strain of serious misfortune.  Your Money Concepts representative can help you identify the kind of coverage that you will need to provide security for you and your family.

Life Insurance
Life insurance should be a cornerstone of any financial plan.  This is especially true if you have dependents who rely upon you financially.  The proceeds of a life insurance policy can help ensure that your dependents or estate are not burdened with significant debt.

If you have adequate life insurance coverage, your dependents won't have to sell the house or other assets in order to pay outstanding bills or taxes.  An important feature of life insurance is that death benefits are not subject to federal income taxes.

The amount of life insurance an individual requires can vary greatly.  Generally, the more individuals who depend on your income while you are alive, the more life insurance you should own.

Disability Insurance
Disability insurance is designed to provide you with an income should you find yourself unable to work due to an accident or illness.   It can replace approximately two-thirds of your income so you won't have to worry about finances when you're ill or injured.

While most people appreciate the need for life insurance, many underestimate the importance of disability coverage.  Almost 50% of all mortgage foreclosures, for example, result from a disability rather than death.

Statistics as outlined in the chart, show that 418 out of 1,000 men, and 490 out of 1,000 women will be disabled for a period of at least 90 days between the ages of 35 and 65 years.  At age 40, the chances of being disabled for longer than 90 days are four times greater than dying.

Number of persons in 1,000, who before 65 years old will suffer a disability for more than 90 days.

Critical Illness Insurance
Critical illness insurance is a relatively new type of coverage which pays out a single lump sum if you are diagnosed with a serious illness.  The proceeds are tax free and can be spent or invested however you wish.   You could use the money to pay for medical treatment that isn't covered by a medical plan, such as alternative therapies or dietary supplements.  Or you could use it to maintain your standard of living while recovering.

No one likes to think about suffering a serious illness.   And most of us will have the good fortune to spend our lives in good health.   But it's when you are healthy that it's prudent to provide for a safety net.   Consider these facts:  one in four Canadians will contract heart disease.   One in three will contract cancer.  One in 20 will suffer a stroke before age 70.

Fortunately, medical research has achieved numerous breakthroughs in combating serious diseases.  New drugs, innovative technology and improved techniques (such as organ transplants) are saving lives, or at least prolonging them.  Gene therapy promises even more encouraging treatments for the future.

As a result, people are more likely to survive a serious illness.  Sixty per cent of cancer patients will live for five years or longer, and 75 per cent of stroke victims will survive the initial attack.  But because of a higher rate of survival, Canadians need to cushion themselves against the financial strain of an extended period of illness and/or recovery.  Critical illness insurance can provide that cushion.

Planning for risk
Critical illness, disability and life insurance all address different concerns.  Depending on your circumstances, you may need one kind of coverage more than the other.  Many Canadians, however, acquire all three kinds of policies to provide comprehensive protection for themselves and their families.  Having the right type of insurance coverage can remove financial uncertainty and foster peace of mind.  Your Money Concepts representative can help you to determine which type and amount of coverage will offer you and your family the kind of financial security you need.

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274 Raglan Street South, Renfrew, Ontario K7V 1R4 ~ Tel: 613-432-5617  1-800 520-0820   Fax: 613-432-2051
Money Concepts - Ottawa Valley is affiliated with Investia Financial Services Inc. and National Financial Insurance Agency Inc.

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