Why Do I Need Insurance?
Insurance means protection.
Protection from the unexpected means a higher quality of life. Insurance helps divide the financial risk associated with a major emergency over a large group of people; this is called pooling the risk.
How does it work? Here's an example: if 100,000 people pay $25 each, it creates a pool of $2,500,000. If 100 of these people each incur claims of $20,000, that totals $2,000,000, leaving $500,000 in the pool. Most of the people who paid the $25 never used it, but those who did use it are incredibly relieved that they had this protection in place.
Of course, real-life insurance is much more complex than that. It accounts for the statistical probability of different types of people making different types of claims. But the principle is the same - by spreading the risk over a large group of individuals, an insurance company can provide peace of mind at an affordable price.
Travel Medical Insurance
Travel medical insurance is one of the most affordable types of insurance, mainly because it usually only covers a short period of time and the potential for a large claim is relatively low. However, the peace of mind that it provides is indispensable.
Your provincial plan only covers a small portion of out-of-country medical expenses. A travel medical plan ensures that you aren't left with a $100,000 hospital bill after a major accident or an unexpected medical emergency. Just as important, though, are the other benefits of travel insurance - 24/7 emergency assistance to help guide you through an unexpected emergency, and monitor your case to make sure you're receiving appropriate care. You can also be covered to bring a family member to your bedside, or to get you home with a medical attendant if necessary.
Extended Health, Dental & Prescription Drug Insurance
If you're one of the millions of Canadians without an employer group health plan, you could be in financial danger. Your provincial health plan covers basic services such as hospitals and doctors, but there's a long list of other services that are partially or entirely outside the scope of government coverage. Prescription drugs, chiropractors, ambulances, private or semi-private hospital accommodation and dental work are only a few examples.
An individual health and dental plan serves two purposes. First, it allows you to manage your costs for routine services such as dental care; you can budget more easily for a regular monthly insurance payment than for a larger bill when you use these services. Secondly, it protects you against the unexpected: if you are diagnosed with a major medical condition, costs for medication, equipment, and paramedical services can add up very quickly and have a serious impact on your quality of life if you don't have adequate insurance protection.
Life Insurance
Do the people who are important in your life rely on your income or your personal care for their quality of life? If you were to pass away, they would be at major risk. No one likes to think about this, but we all have to ask ourselves: if I die today, what will I have left behind?
Life insurance pays a lump sum to your designated beneficiaries in the event of death. This sum of money can be used to do things like pay off your debts, provide a monthly income to your dependents, or hire a professional caregiver if you had been the one caring for a spouse, parent or child.
Living Benefits
What would you do if you found yourself unable to work for months, years, or even the rest of your life? Employment Insurance and the Canada Pension Plan offer some benefits, but these are never sufficient to adequately replace your income. If your life circumstances change dramatically due to an accident or illness, a living benefits product can protect your quality of life, and that of your dependents.
Disability insurance provides a monthly payment based on your prior income in the event that you are unable to work due to an accident or a protracted illness.
Critical Illness insurance complements this coverage by providing a lump-sum payment in the event of a major diagnosis; this money can be used to pay for private medical services, renovate your home if you have a new mobility impairment, or even just to "seize the day" and take the great vacation you'd always dreamed of.
Long-term care insurance offers another level of protection, protecting you for a monthly sum in the event that you find yourself in a position where you require assistance with the essential activities of daily living.
