What is Family & Asset Protection?
As we all know, life is full of risk and uncertainty. We accept risk into our lives every day, each time we leave the house, drive a car, go to work, or try something new. Uncertainty is a part of our lives that isn’t going away, but through Family and Asset Protection, we can take steps to ensure that our spouses and loved ones are cared for in the event of a sudden death, disability or illness.
John is a construction worker and Mary is a nurse. They are married with three young children, a house, two cars and a retirement fund. They are twelve years away from paying off their mortgage and have already started saving for their children’s education. On the surface, it may seem like John and Mary are set up for long-term financial success, but what happens if:
These situations are every family’s worst nightmare, but circumstances just like these unfold in our province on a regular basis. For families without adequate protections in place, a death, injury or critical illness of a key provider can have generational impacts. When a spouse can no longer earn money, families are forced to dip into their savings, sell assets like the family home that are no longer affordable, and may have to bear up-front costs for medical treatments or rehabilitation while waiting for a liability settlement. The stress caused by these hardships can lead to interpersonal conflict that damages relationships between family members.
Family and Asset protection ensure that your family will be financially supported if you become unable to work, and the immediate benefits can be used to cover living expenses, pay for rehabilitative treatments and keep your family on track for the future.
Family and Asset Protection in Saskatchewan
For Saskatchewan families, family and asset protection means ensuring that your loved ones get the support they need if you become unable to work or provide for them. The protective measures that we can explore fall into three main categories:
Permanent life insurance includes features that can grow money inside your policy over time. As this money grows, you can access it to enhance your retirement income, start a business, travel, or leave a larger legacy to help your loved ones carry on.
Disability ensures that your family won’t be left wanting if you are rendered unable to work due to becoming disabled.
Individual critical illness insurance can cover you against up to 25 conditions, including cancer, heart attack and stroke.
Family and Asset Protection for Young Families
If you’re under 35 and just starting your family, you might be wondering whether family and asset protection is necessary in your unique circumstances.
One of the most common misconceptions about family and asset protection is that it only applies to the super-rich or to families that own a lot of assets.
However, this couldn’t be further from the truth. Young families have just as much at stake when it comes to protecting their loved ones from the negative consequences of an unexpected death, disability or critical illness.
Just think about what would happen if an accident today prevented you from working for the next thirty years. Could your spouse afford to cover all family expenses without your help? How would you continue to provide for your family? Would you have to sell your home? Would your kids be able to go to college? What kind of strain would that put on your relationships?
Family and asset protections deal with the financial aspect of coping with the unforeseen challenges that life has to offer, relieves the stress and uncertainty created by these situations, and gives young families the resources they need to heal together and stick together for life.
Frequently Asked Questions about Estate Planning in Saskatchewan
A whole lot has been said about the advantages of term life versus whole life insurance policies. With term life policies, insureds benefit from lower premiums and often high benefit amounts. Whole life policies can accrue more value over time, so they become a savings vehicle, and they also never expire. Some term life policies can also be converted to whole life policies. Ultimately, the best option for you depends on your unique needs, goals and circumstances.
Absolutely. Our Canadian health care system will provide you with acute care for critical illnesses, plus you’ll be able to follow up with doctors to manage your condition with virtually no cost. You may have a health insurance plan that provides additional benefits, such as therapy or rehabilitation (in the event of a stroke, for example). However, the government of Canada will not pay your mortgage payment or property tax when you get sick – that’s what critical illness insurance is meant for.
Our Approach to Family and Asset Protection
Our approach to Family and Asset Protection is simple. Let us show you how we can help keep your family on track for the future. Together, we can:
We review your existing plans and arrangements for family and asset protection to identify any gaps in coverage that could leave you unprotected.
We explore possible situations that could leave your family and loved ones exposed to the risk of financial or asset loss, evaluating the potential likelihood of each case.
We work with you to tailor a customized insurance plan that limits your risk and protects your family and assets from the negative consequences of unexpected life events.