Term life insurance

Term life insurance is a temporary, more budget-friendly option, often favoured by families with young children because it provides coverage should a death occur during this critical life phase, when a missing income would cause familial hardship. It provides a lump-sum death benefit to beneficiaries upon the carrier’s death, allowing families to cover debts like mortgages, loss of income and education fees. Generally, policies last for a set period of time – for example, five, 10, 15 or 20 years – and can be renewed. People may opt to plan the set period of time around milestones, such as paying off a mortgage or kids growing up and becoming financially independent.

Critical illness insurance

This is an insurance policy that pays a one-time lump sum if the policyholder is diagnosed with a serious illness before turning 65. Coverage can be used however the policyholder likes, often allowing them to make up for lost income while they recover. Critical illness insurance generally covers diagnosis of life-altering conditions, including cancer, stroke, heart disease or heart attack, organ failure, severe burns and more.

Disability insurance

Disability insurance provides coverage should you not be able to work temporarily or permanently because of an injury or illness. Generally, disability insurance covers 60 to 85 per cent of your regular income. Short-term disability usually pays a higher percentage for about 90 days to six months. Those still unable to work after that time may qualify for long-term disability insurance coverage, which generally provides coverage for around 60 per cent of your income for pre-determined amount of time, dependent on your plan. In Canada, long-term disability benefits generally begin after other benefits (employer sick leave, short-term disability and Employment Insurance) have ended. Many employers offer group disability coverage as a part of their suite of benefits.

Long-term care insurance

This is a specialized type of insurance meant to cover the costs of in-home care or living in a facility should a person no longer be able to care for themselves independently. This insurance is an income-style benefit that provides daily or monthly coverage for associated care costs.

How to choose the right insurance for financial security 

Before selecting independent insurance coverage, first verify any workplace coverage you have. This will allow you to supplement your insurance based on your values and needs and avoid duplicating or overlapping coverage. Contact an insurance advisor to learn about available insurance products and how they align with your personal investment goals and values. This allows you to make an educated insurance investment decision and select the right timeframe for coverage