Individual Insurance

Defining Critical Illness Insurance Critical Illness Insurance is designed to provide financial relief if you’re diagnosed with a significant health condition. The policy outlines specific covered illnesses, typically including major concerns like cancer, heart attacks, and strokes.

How Does It Work?

1. Select Your Coverage: Choose the amount of coverage that meets your needs.
2. Premium Payments: Regularly pay your insurance premiums.
3. Claim Process: If diagnosed with a covered critical illness, file a claim.
4. Receive Payment: After a predetermined waiting period, receive a tax-free payment.

Beyond Financial Support Critical illness insurance is more than a monetary benefit. It’s a comprehensive support system, aiding both financially and emotionally during difficult times.

Expert Medical Assistance Access top medical specialists for:

• Second opinions.
• Understanding complex medical information.
• Exploring treatment options.
• Guidance through the healthcare system.

Additional Support Services The policy may include services to support you and your family:

• Counselling services.
• Family support like childcare and home care.
• Legal and financial consultation.
• Nutritional advice.

Why Critical Illness Insurance is Essential

• Prevalence of Serious Illnesses: One in three Canadians will experience a life-altering illness in their lifetime.
• Cover Daily Living Expenses: Use the payout to manage expenses during recovery.
• Protect Your Savings: Avoid using retirement funds or other investments for medical costs.
• Focus on Recovery: Financial peace of mind allows you to concentrate on getting better.

Determining Your Coverage Needs Consider the following to gauge the necessary coverage:

1. Income Analysis:

   • Potential loss of income during illness.
   • Impact on your spouse’s income if they need to take time off.

2. Current Expenses:

   • Mortgage/rent.
   • Loans, debts.
   • Groceries, utilities.
   • Credit card bills.
   • Other regular expenses.

3. Additional Costs:

   • Healthcare-related expenses (hospital stay, medications).
   • Travel for treatments.
   • Childcare during treatment and recovery.
   • Home care or nursing support.

These factors will help you estimate the coverage amount you might need.

Next Steps The above is just an initial guide. A professional advisor at Vantage can conduct a thorough needs analysis to tailor a critical illness insurance plan that best suits your situation.

Safeguarding Your Income: The Importance of Disability Insurance

What is Disability Insurance?

Disability insurance acts as a financial safeguard, providing you with tax-free monthly income if an illness or injury hinders your ability to work. It covers a wide range of disabilities, from visible physical impairments to less apparent issues like chronic pain or mental health conditions.

How It Works

1. Choose Your Coverage – Select the amount that fits your needs and add optional benefits for tailored coverage.
2. Premium Payments –  Regularly pay your insurance premiums.
3. Claiming Benefits – File a claim if you become disabled.
4. Receiving Payments – After a specified waiting period, start receiving monthly payments.
5. Duration of Benefits – Payments continue until the end of the benefit period or your return to work

Why Disability Insurance is Crucial

High Probability of Disability: Up to 40% of Canadians might experience a disability lasting 90 days or longer before turning 65.

Income Replacement: Potential to receive up to 80-90% of your net pay.

Preserving Savings: Avoid dipping into retirement funds for medical expenses.

Income Protection: Safeguard your ability to earn, often the most valuable asset over a career spanning 30-40 years.

Determining Your Coverage Needs

Consider your potential earnings based on age and salary, assuming a 2.5% annual raise until age 65. For example, a 30-year-old earning $70,000 annually could amass over $3.8 million by retirement.

Cost of Disability Insurance

Premiums typically range from 1-9% of your salary, influenced by factors like coverage amount, benefit period length, waiting period, age, health status, and occupation.

Maximizing Your Financial Security with Disability Insurance

Estimating Your Potential Benefits

The amount you can receive through disability insurance depends on your current earnings:

For an Annual Income of $50,000: You might be eligible for a monthly benefit of approximately $2,975. This equates to an annual take-home pay of about $36,000.

For an Annual Income of $120,000: You could qualify for a monthly benefit close to $6,000, resulting in a yearly take-home pay of around $71,100.

Key Considerations

Partial Income Replacement: It’s important to note that disability benefits typically cover only a portion of your usual annual income. This partial replacement underscores the need for effective financial planning.

Budgeting and Financial Planning: To ensure you can comfortably cover all necessary living expenses during a period of disability, having a well-structured budget is crucial. This proactive approach will help you adjust to the change in income without significant financial strain.

Strategic Financial Management

Understanding the specifics of your disability insurance and aligning them with your financial plan is essential. This alignment helps ensure that, in the event of an unexpected disability, you and your family remain financially secure, focusing on health and recovery without the added stress of financial uncertainty.

Next Steps: Ensuring Financial Stability with Disability Insurance

1. Create a Comprehensive Budget – Establishing a detailed budget is crucial. This will ensure that your living expenses are adequately covered, especially in times of unexpected income changes due to disability.
2. Review Your Current Employer Coverage – Take the time to thoroughly understand the extent of disability insurance coverage provided by your employer. This understanding is key to identifying any potential gaps in coverage that might need additional attention.
3. Consult with a Financial Advisor – Reach out to a professional financial advisor at Vantage. They can offer expert guidance and assistance in setting up a disability insurance plan that’s tailored to your specific needs and circumstances. This step is vital in ensuring that you have the right level and type of coverage to secure your financial future.