Insurance is often thought of as an optional extra in the area of personal and business finance – a “nice to have” which can offer protection if things go wrong but certainly not as an important asset in its own right. However, it’s true to say that clever insurance planning is a strategy which can protect the vital asset of your ability to earn an income – perhaps the most important asset that you have.
Of course, with so many different types of insurance policies out there, the key challenge lies in working out exactly what
type of insurance can add the most value to your portfolio and offer you the most benefit.
If you are serious about ensuring robust protection for your finances and your family, here are the three main areas of
insurance that you should consider:
Term insurance offers temporary protection of around 10 to 30 years, usually with an option to renew or convert your policy at the term end. On the other hand, permanent insurance lasts for a lifetime and often offers a death benefit which is payable to your beneficiaries.
This term covers a range of insurance policies, as follows:
Disability insurance offers income protection against injury or illness which means that the policyholder cannot work and earn an income.
Critical illness insurance covers many common illnesses such as cancer and strokes and offers lump sum payments upon diagnosis.
Long term care insurance is often used in later life to insure against the possible need of becoming dependent upon others for your care and can pay for care facilities or care providers.
Although many individuals receive some form of living benefit from their employer, it is recommended that they enhance this
policy to ensure that they benefit from an appropriate level of cover which suits their income and financial needs
Understanding your insurance values
It could be said that your personal values dictate the type of insurance that you take out, reflecting what is important
to you in their professional and personal lives and how you best want to protect such assets. The key to clever insurance planning is making sure that your insurance portfolio perfectly matches your financial and life priorities and objectives.
Ong Financial Planning Services Ltd.
John Ong, CFP, CHS, CPCA, CCS
Tel: (604) 676-1088
1275 West 6th Avenue 3rd floor
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John has been providing financial planning advice for over 15 years. John is currently licensed as a life insurance agent, accident & sickness agent, mutual funds representative*, Financial Planner, Certified Health Insurance Specialist, and Certified Professional Consultant on Aging. He specializes in personal financial planning advice with an emphasis on risk management, estate & retirement planning.