Sarah Twomey | Desjardins Group
Over the last few decades, women have become increasingly the dominant economic force in our society. While women are able to assert their independence through lifestyle and career choices, many still find financial planning to be very stressful.
Statistically women live longer than men, but they are often in a more vulnerable financial position. It's for this reason that women need to be better prepared financially in case of an emergency, like a serious illness.
So how can you become better prepared? Speaking with a financial planner is the important first step. The advisor can assist you to identify the strategy to ensure your family's security, should you ever be diagnosed with a serious illness. This way you can concentrate on recovery instead of worrying about expenses.
The plan should have three parts:
Disability insurance: It's a valuable, must-have protection that pays a regular benefit based on the person's monthly salary, which can be used to cover every-day financial commitments.
Extended medical insurance: Even with the protection of disability insurance, many women are not able to pay for all of the drugs and treatments associated with a serious illness. And it's important to point out that they also may not be covered by your provincial health care system. An extended medical insurance plan is an excellent protection against these high costs.
Critical illness insurance: It's often the missing piece of the puzzle, but luckily it's a product that's growing in popularity. In fact, sales of critical illness insurance in Canada have doubled in the last ten years. It provides a substantial lump-sum payment tax-free, which can be used for anything. For example, even the minimum benefit of $25,000 would allow someone to make a year's worth of mortgage payments or travel outside the country to seek the best medical care available.