INSURANCE BASICS

WHAT ABOUT INSURANCE?

This is one of the more complex topics but protecting your income can include term life, disability and critical illness coverage. You need to find the right mix to provide peace of mind for you and your family:

1)      Term: simple, low cost when young and essential if you have dependents and/or a mortgage. The premium increases as you get older, but instead for a slightly higher initial amount, you might consider purchasing a fixed annual premium policy.

2)      Disability and critical illness: also, basic and obligatory in some jurisdictions like BC. You may need additional coverage beyond the basic plan depending on your stage of career and income/overhead.

3)      Whole Life: an investment vehicle sometimes combined with life and disability. Usually not a good idea for young professionals but does have a major role in estate planning.

4)      Joint last to die policies: meant to protect corporate assets and therefore usually only applicable in later stages of a professional career.