DEPARTMENT
fine
BUSINESS
lifestyles regina Bill Allen
INSURANCE
Insurance Advisor CFP Sun Life Financial 306.757.8631 ext.2207
EXPERT ADVICE ON CRITICAL ILLNESS INSURANCE
A very common mistake found when discussing contingency plans to prepare for a disability, is the assumption that the disability insurance provided by the employer is all that can be or needs to be done. Most people don’t realize their after tax income while on disability will reduce by 10% to 20% (or even more if their income is greater than the maximum insurable amount). A decrease most are not expecting, especially during that period of higher costs. To avoid financial stress during the recovery process, and to avoid liquidating investments, we need to fill this income gap. Medical advancements mean more and more people are surviving serous illness or conditions (i.e. cancer, stroke and heart attack), Critical illness insurance pays a lump-sum benefit that helps you manage the cost of recovery, which often extends beyond the cost of medical treatment. (Did you know almost 90% of people admitted to a hospital with a first time heart attack and over 80% of those with a first stroke survive?) Critical Illness insurance is a smart way to protect your family’s financial well-being during the recovery process. It’s especially important for single people, self-employed individuals or business owners who may not be able to earn a living while they focus on getting better. Even if you have disability insurance to replace some of your lost income. Critical illness insurance helps fill the gap between your usual pre-disability income and the amount of your disability benefit provides. Coverage is also available for children, which allows parents to take time away from work to look after their child’s needs. Coverage for your child can also guarantee they have coverage as adult. Regardless of their health, lifestyle or occupation.
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If you are diagnosed with one of the conditions covered under your plan, the lump-sum benefit is paid to you at the end of the required survival period (often as low as 30 days). This benefit gives you more options and greater control over how you manage your recovery because how you spend the money is entirely up to you. You may use it to cover treatments or medications not paid for by government plans, to cover the lost income of a family member who takes time off work to be with you – it’s completely up to you.
YOUR MONEY
EXPERT ADVICE ON “THE ART AND SCIENCE OF FINANCIAL PLANNING...”
lifestyles regina Grant Karst
Financial Planner CFP, CFU, CHFC, Owner, The Wealth Planning Group Inc. 306.757.5038ext. 225
There is both an art and a science to the financial planning profession. Most people have some knowledge of the science aspect, that is, the pure economics of it, including: life, income replacement, critical illness and long term care insurance products and annuities. One must also consider investments such as mutual funds, segregated funds, Guaranteed Investment Certificates, individual securities and the newest kid on the block: Guaranteed Minimum Withdrawal Benefit products. A financial planning software program pulls all the data together and produces a report that gives a snapshot of an individual’s financial situation. Since most of these can be purchased on line, why use a financial planner? This is where the art comes in. First of all, everyone has a story which is much more interesting and complex than fits into a standard insurance or investment product. A good financial planner takes the time to listen to the story and ask questions to ascertain the important details and motivations of his or her clients. Conversely, a good financial planner is also a good storyteller, which helps clients relate to other people’s problems and find solutions in similar circumstances. Now this isn’t all about the money – although that is an important part of the planning meetings. It‘s about how people want to be remembered, who and what they want to protect, and for what they are willing to make sacrifices. It’s about parents and kids, grandparents and grand kids, family businesses and leaving a lasting legacy. Sometimes money is the solution and sometimes it is the problem. A good financial planner organizes a team of experts who provide expert advice in this planning process. Clients can deal with someone who really understands them and their situation, but who is also connected to other sources of expertise. After all, the financial planner has a proven process, which brings the art and the science together into a meaningful plan that works in real life.
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fine lifestyles regina
Summer 2009