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Why do we have to consider insurance, again?

on Mon, 09/30/2013 - 14:25
September is the Life Insurance Awareness Month, yes, Life Insurance Awareness Month, even though most Canadians understand that life insurance is an important component of financial planning, we still devote a whole month for life insurance awareness. 
 
I know lots of people understands the importance of life insurance but not many of us know how much coverage we need, and half of us aren't confident we bought the right amount (according to a survey Manulife Financial had done in 2011). At the same time, a RBC Insurance/Ipsos-Reid survey dated 2004 said while 70% of Canadians have life insurance, 61 per cent of those who have coverage review it less than once a year…
 
As a financial advisor, I see more people have little alert on critical illnesses risk and disability risk actually. I do think Canadians not upkeeping their coverage is alarming but I think having well-rounded protection is more important. 
picture credit: Manulife Financial
 
We normally have little assets when we are young (<30 years, for some of you who started saving when you were in school, congrats! But not a lot of these kids out there). That's usually the time we can make money and we can focus to make as much as we want. My average client in that age makes around $100k, that continues throughout our most important years. Some of us get married and have kids around 35 years old and we start to see our disposable income shirking… Bear in mind in between all these, we still have to build our RRSP for retirement, save up for down payment, go travel from time to time to enjoy life… there are LOTS of things we want to do and lots of obligations along the way. 
 
We often forgotten that we can get sick too. Relatively, (in my opinion) dying is not as close to us as a decade or two ago. Rather, the chances of getting critically ill is so much higher (the air we breathe, the food we eat and everything around us, check out CBC Marketplace's Chasing the cancer answer, which was aired in 2006!); the chances of us getting into accidents (car accidents every day; accidents we could get into when we travel, or even when we play sports!). Not to mention it was the anniversary of 911 a couple of days ago, and we have not thought of those at all. 
 
The Transport Safety Board of Canada stated in their Annual Aviation Occurrence Statistics 2012 that, a total of 290 aviation accidents were reported in 2012, a 13% increase from the 2011 total of 257. Of the total, 239 involved Canadian-registered aircraft (excluding ultra-lights), a 4% increase from 2011. I wonder why are we NOT aware what kind of risk we are in!
picture credit: Transport Safety Board of Canada
 
For the sake of your family, your future, please keep your coverage up-to-date and obtain sufficient coverage for yourself. Interested viewers can also reference my other blog post How to choose the correct policy and juggle between your budget.
 
 

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