Life is full of uncertainties, with smart insurance planning, you can gain peace of mind and protect what matters most. In a recent episode of The Wealthy Life, host Sybil Verch explores how Canadians can protect what matters most: their families, health, and financial future.
Is Life Insurance Worth It? Absolutely.
Insurance Planning Specialist Jacqueline Knoblauch explains that if anyone depends on your income, whether it is a spouse, child, or aging parent, life insurance is worth considering. It ensures your loved ones are not left with a financial burden if something happens to you.
Four Key Insurance Types:
Life Insurance: Provides a payout to your beneficiaries if you pass away. Essential for families and anyone with financial dependents.
Critical Illness Insurance: Offers a lump sum if you're diagnosed with a major illness. Helps with medical expenses, lost income, or recovery time.
Disability Insurance: Replaces a portion of your income if you’re unable to work due to illness or injury.
Health & Dental Insurance: Especially valuable for retirees or self-employed individuals. Helps cover vision, dental, prescriptions, and other health-related costs.
Term vs. Whole Life Insurance: What’s Right for You?
Term Life Insurance: Affordable, fixed-term coverage (often 10–30 years). Ideal if you want protection while paying off a mortgage or raising kids. Doesn’t provide coverage beyond the term selected.
Whole Life Insurance: More costly but builds long-term value and may include a cash value component to access during your lifetime. Commonly used for estate planning and leaving behind a legacy.
Cash Flow Planning for Insurance
For many Canadians, allocating funds for insurance can be a challenge. However, including insurance in your financial plan is essential for protecting your income, health, and your family’s future. What would your financial situation look like if something happened, and you weren’t insured?
Sybil Verch, host of The Wealthy Life, suggests using the 50/20/30 rule as a helpful guide to allocate your income strategically:
50% for essentials: Housing, utilities, groceries, and transportation
20% for savings and insurance: Allocate a portion of this category to essential insurance coverage, such as life, disability, or critical illness. Consider these premiums a fixed financial obligation, like a utility bill.
30% for lifestyle: non-essential spending, including travel, dining, entertainment, and personal purchases
If your income doesn’t currently align with this structure, prioritize covering your essential needs first. From there, explore additional ways to increase your income and make necessary adjustments to your spending. Even small, consistent changes can help you grow your savings and create space for important insurance coverage.
Start Building Your Financial Future Today
Review your insurance needs and find what fits your lifestyle and goals. This will reduce stress and can be one step towards greater piece of mind and financial security.
For more on insurance, retirement, budgeting, and financial wellness, watch the full episode and explore more resources.
About The Wealthy Life:
The Wealthy Life empowers Canadians with the knowledge and tools to make smart financial decisions. Join the Wealthy Life Club for exclusive insights, resources, and guidance to help you live your version of a wealthy life.
