Have You Insured Your Retirement Goals?

Estimated Reading Time: 90 seconds

Most people in Canada are aware of the fact that they need to start putting money away for retirement when they are young. While some people are still lucky enough to have a defined benefit pension, most Canadians will need to contribute to their own retirement nest egg. The vehicle of choice for these savings is the Registered Retirement Savings Plan or RRSP for short.

During this time of the year, it is hard to go anywhere without seeing or hearing ads reminding us of the RRSP deadline and encouraging us to contribute to our own RRSP. Aside from consumer awareness and a deadline, there are other motivating factors to contribute to our RRSP, including the dream of not needing to work one day in the future and the income tax deduction applied to our income.

Unfortunately, for many Canadians, most of their net worth is wrapped up in their RRSP, their home and maybe their business. What they have not taken the time to consider is what they can do to protect the retirement goals if things do not go exactly to plan. How would your retirement be affected if you suffered a heart attack, stroke or were diagnosed with cancer?

Dealing with these types of serious conditions bring on significant unforeseen expenses not covered by the government or employee benefit plans. They can come in the form of treatments, additional living expenses and lost income of a caregiver. Most Canadians will find there are very limited options available for covering these unexpected costs, thus often leading to RRSP withdrawals. Aside from the fact that depleting RRSP’s to cover the cost of a recovery will have significant consequences for your retirement lifestyle, it is also fully taxable as income in the year you withdraw the funds.

With a little planning while you are healthy, this situation can be avoided with the use of an insurance product called Critical Illness Insurance. A Critical Illness Insurance policy can provide you with up to $2,000,000 of tax-free money 30 days after a diagnosis of Cancer, Stroke or Heart Attack as well as 21 other conditions. You also have the ability to add a return of premium option, which will allow you to get all of your money back any time after 15 years just by staying healthy!

This year when considering your RRSP contribution, why not take a portion of that amount and insure your retirement goals? As an example, if you were planning to contribute $500 per month to your RRSP, why not take $100 of that amount to put towards a Critical Illness Insurance policy? It would be a much better long term investment for you and your family and much better to lose your mortgage if G-d forbid you become sick, versus losing your house.

 

Please contact us for additional information and a fuller explanation of what Critical Illness Insurance can do for you and your family by sending an e-mail to info@curryfinancialgroup.com or calling 1-866-445-4424.

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All the best,

Joe