Income Protection

Be prepared for life changes

You carefully select investments to maintain and increase the value of your portfolio. You faithfully make your annual Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) contributions. And for very good reasons – to achieve your goals for the future.

Early retirement. Travel. Permanent cottage life. A legacy for your children. The choices are yours – and that’s as it should be.

But, what would happen if your choices – your dreams! – were taken away by an injury or illness that prevented you from earning an income? What would happen if you were forced to use your investments to pay for expensive health care needs, for private care, or to renovate your home? That’s where Lifestyle Insurance™ comes to the rescue.

Life insurance is necessary – but it isn’t enough

Life insurance pays the benefit to your designated beneficiary after your death. Lifestyle Insurance™ is unique. It pays benefits to you while you’re alive – providing vital financial support when you are unable to earn an income or are faced with escalating living costs because of a medical condition.

Without Lifestyle Insurance™ you’re at risk of losing everything. You may be forced to mortgage or sell your home, liquidate your assets, or spend your retirement savings.

Critical illness insurance

You’re more likely than ever to recover from a critical health problem. The remarkable strides in medical technology have made it possible for growing numbers of people who experience a critical health problem to live long and fruitful lives, perhaps even making a full recovery.

Don’t gamble on your ability to earn a living – Critical illness insurance provides funds to keep going until you can once again earn a living.

  • An estimated 173,800 new cases of cancer will occur in Canada in 2010
  • There are over 50,000 strokes in Canada each year and about 300,000 Canadians are living with the effects of a stroke
  • Nine in 10 Canadians have at least one risk factor for heart disease or stroke

Critical illness insurance usually pays a lump sum if you contract a specified illness. Depending on the coverage you choose, it can cover cancer, heart attack, stroke, paralysis, MS, Parkinson’s disease, Alzheimer’s and many other ailments. Generally, there are no strings attached to the payout – you can use the proceeds to pay for private treatment, subsidize your income, pay down your mortgage, modify your home, keep a business running or even take a recovery vacation.

If you’re like many people, you probably assume our health care system will pay all your expenses if you become critically ill – but you’d be wrong. Many drugs aren’t covered. Additional expenses like travel, day care, home care and private treatment may not be covered. And as health care costs for professional services and pharmaceuticals continue to escalate, government aid has fallen further off the pace.

A critical illness may require you to hire a nurse or domestic help. Your spouse may need to take time off work. You might require timely, non-insured or experimental treatment outside Canada. All of these contingencies cost money, and most of us will do everything we can to preserve our health, regardless of cost. Critical illness insurance can help you achieve and maintain financial security no matter what life brings.

Disability insurance

Disability insurance will deliver an emergency income to help you get through an extended illness. It’s a must if you have a family – particularly if you’re the sole source of income – and it’s also a good idea for singles without dependents because even a short period without income can send you into a financial spiral that could radically affect your quality of life well into the future.

Don’t gamble on your ability to earn a living – From unexpected illnesses to traffic accidents, we face risks every day. That’s why it’s vital to get your disability insurance needs off your “to do” list and into action today.

  • A person who is 25 years old has a 4 in 9 chance of being disabled for 90 days or longer at least once during their working career
  • The average length of a disability lasting over 90 days is 2.9 years (only considering time disabled up to age 65

Many people have some disability insurance through a group insurance plan with their employer or professional organization. But, coverage ceases when you leave your job and these plans often fall short of the longer-term coverage you really need.

Most group plans replace just 65 percent of income and often have restrictions or limitations that reduce the maximum payment far below that percentage of your income.

Conditions that must be satisfied to qualify for benefits often become more difficult under a group insurance plan after receiving two years of disability benefits. Additionally, the benefits may be taxable.

Individual disability insurance is designed to fill the gaps in group disability coverage and preserve your savings. Your individual policy can be structured to provide precisely what you need.

If you are self-employed or have no disability coverage through your employment, you absolutely need disability insurance to generate sufficient income during an extended illness.

Supplemental health care insurance

Health care and dental insurance pay for many common medical expenses not covered by government health insurance plans – such as prescription drugs, eyeglasses, private and semi-private hospital rooms, and dental work.

Don’t gamble on your existing health plans covering all your medical expenses

In these days of cutbacks in medical expense coverage, provincial governments are covering fewer medical expenses and many prescription drugs and medical supplies once covered in hospitals by government plans are now the responsibility of the patient. Plus, alternative medical treatments – such as chiropractic, physiotherapy, acupuncture and naturopathy – receive limited coverage, if any, from provincial plans. Supplemental health coverage should be an important consideration – especially if you do not have an employer group health plan or are self-employed.

Which Lifestyle Insurance™ protection is right for you?

You could gamble that a life-altering accident or illness won’t deplete your savings or impact your income. Or you could help insure they don’t – by making modest investments in Lifestyle Insurance™.  Contact Norman Piche & Associates to find out about the programs that best suit your needs.

General Cancer Statistics, Canadian Cancer Society, 2010
Tracking Heart Disease and Stroke in Canada, Heart and Stroke Foundation of Canada, released June 2009
1985 Commissioner’s Individual Disability table and CIA 86-92 Aggregate Mortality Table