Do You Have Enough Insurance?

May 14, 2013 10:50 am Published by

Reviewing someone’s insurance portfolio involves looking at what form of life and disability insurance coverage they current have.  An individual may  have a group benefit plan with some life insurance available as a multiple of earnings, or a set amount per month of disability coverage.  There may  also be coverage available, in the right circumstances, under a combination of Employment Insurance (EI), Workers Compensation Board (WCB) and Canada Pension Plan (CPP).   Some will have mortgage protection coverage offered through their bank.  Few have their own individual life and/or disability insurance coverage to compliment other coverage available.

It can be quite confusing to assess exactly what coverage you have, and how and when they will pay.  That is when an experienced independent life insurance broker can help:

  1. Start by first addressing your insurance need – how much do you need in the case of your short-term or long-term disability, and how much do your dependents need in the event of your premature death.  This need changes over time:  increasing with marriage, kids or first mortgages, and decreasing as your kids finish school and become independent and/or the mortgage is decreasing in size.
  2. Next, assess your current financial circumstances and your available budget – this speaks to how much you can self-insure, and how much you can dedicate to necessary insurance coverage.
  3. Finally, assess your current insurance coverage – is the coverage sufficient, is it expensive coverage both now or in the future, does the coverage move with you if you change jobs.

After these 3 steps, an experienced independent life insurance broker can tailor an insurance plan specifically for you.

I can say that many times after doing this review, I have been able to place improved coverage for a client at the same or even cheaper premiums.  That helps your peace of mind, as your insurance portfolio is now in place to cover you in the event of unplanned risks.  You can now live, work and play with the knowledge that this important piece of your financial planning puzzle has been solved.

Contact me for a review of your current insurance coverage and needs at marco@mgfadvisory.ca or 604-789-3888

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This post was written by Marco Faccone