4 reasons to revisit your insurance coverage

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After the pandemic, economic instability has become the No. 1 issue. As a precaution, you’re thinking of ways to reduce your expenses. Your thoughts wander. Doggy’s treats? No. Morning coffee at the local coffee shop? Hmm...OK. What else? Your insurance? Absolutely not. On the contrary, now’s the time to revisit your coverage. Here’s why.

1. Take care of what counts

In hard times, it’s best to be ready for the unexpected. What’s important is taking care of yourself and your family. Therefore, cutting back on your insurance is not the way to go. Anyone can have an accident. And critical illnesses aren’t something that only happen to other people.

Since your needs change, it’s even more important to revisit your insurance coverage from time to time. Your financial stability and that of your loved ones depend on it.

When should you revisit your insurance?

It’s not only economic instability that should motivate you to revisit your coverage. There are other situations that should prompt you to do so as well. Here are a few examples:

  • Change of jobs (loss of group insurance)
  • Birth or adoption of a child (need for term life insurance)
  • Home or car purchase
  • Loan for renovations
  • Change in your marital situation (separation, death...)
  • Loss or reduction of group insurance at retirement
  • Receipt of or desire to leave an inheritance
  • Business start-up

2. Reduce financial stress

Revisiting your insurance coverage is reassuring. It can reduce your financial stress, a growing cause of anxiety that can undermine your quality of life and your health. If you know that your coverage is tailored to your situation, you can sleep peacefully, knowing that if something were to happen to you, your family could make do.

3. Clarify your short-term and long-term needs

Your advisor can help you determine your insurance needs, whether they are short- or long-term. He or she can also help you find the best solution for you.

Examples of short-term needs

  • Pay off debt
  • Support children
  • Provide cash for the surviving spouse so that he or she can  maintain their standard of living

Examples of long-term needs

  • Pay taxes at death
  • Cover funeral expenses
  • Pay estate settlement fees

4. Adapt your coverage to your needs

Do you have a hard time understanding insurance options? It all depends on your needs and plans. If your main priority is to protect your assets and your loved ones in case something happens to you, you could consider a life insurance or a disability insurance policy. And what about critical illness insurance? Let’s take a closer look.

Life insurance

In the event of your death, life insurance will provide financial support for your family. It can, among other things:

  • Cover costs related to your death (funeral, tax, debts, etc.)
  • Help your loved ones maintain their standard of living
  • Pay off your mortgage or a personal loan
  • Allow your heirs to redeem your shares
  • Ensure the continuity of your business

This coverage could mean that your heirs don’t inherit a financial burden.

Disability insurance

In the event of an injury or an illness that prevents you from working, disability insurance can replace a portion of your income. During your disability, you can obtain a non-taxable monthly benefit. That’s a good thing when you need time to get back on your feet.

Disability insurance:

  • Protects you and your family or your business
  • Tops up insufficient group insurance
  • Protects your retirement savings

Critical illness insurance

Critical illness insurance saves you financial worries if an illness prevents you from earning a living. It provides a non-taxable lump sum. It can help you pay the following expenses:

  • Financial commitments and daily expenses
  • Prescription drugs
  • Treatment not covered by other health insurance
  • Home care
  • Travel for medical appointments
  • Housekeeping services
  • Child care

This way, your income and your assets are protected. You or a loved one can take time off work to recover.

This insurance is also available to cover children. It gives you the option of replacing your salary while you look after your little ones when they fall ill. This also applies in the case of covered surgery.

You don’t need to justify your expenses to the insurance company. It pays you the benefit and you use it as you see fit.

This coverage can facilitate life for self-employed workers and people who want to top up their group insurance.

Reimbursement of premiums
  • Some options provide the advantage of reimbursement of premiums while you are still living.
  • If you die before the benefit expires, all amounts that you paid could be reimbursed to your beneficiary.

In short, revisiting your coverage gives you a clear picture and allows you to keep an eye on what counts: you, your family and your assets. Ensure that you have something to fall back on so that you and your loved ones can have peace of mind. It’s just common sense, right?