Insurance is not a dirty word

Insurance is a contract under which an individual receives money from an insurance company in compensation of a loss. The insurance company pools funds from many clients, and also pools their risks. The risk of a catastrophic loss to any one person is shared over many people, as it is unlikely that many will experience the same loss. Each person pays a small amount for the benefit of being protected should a rare but significant loss occur. The principal is based on sharing the risk over many people.

Many different things can be insured: cars, houses, your life, and your ability to earn an income. “Things” with significant value are worth insuring.

General insurance is the term used to describe insurance on your home, home contents, or vehicles.

Life and living benefits insurance is the term used to describe insurance on your life and health, and your ability to work.

If you have a spouse and/or children or other dependents, the loss of your life could leave these loved ones financially wanting. A Life Insurance policy could pay out a lump sum of money to supplement any other existing or ongoing assets and income.

Based on actual experience, 50% of those age 35 and older will experience a disability from illness or injury that results in complete inability to work for 90 days or longer, and typically lasts between 2 and 3 years (Footnote 1). Most people do not have savings sufficient to replace income for this long. If they do, those savings were intended for retirement and if spent during a period of disability, would substantially set back retirement plans. The solution might be Disability Insurance.  

In other circumstances, you might still be able to go to work, but an illness or injury could require medical tests, treatments, or medications in addition to what is provided by our provincial medical system. These costs might be prohibitive. Critical Illness Insurance might be a solution that provides a lump sum benefit payment in the event of being diagnosed with one of several critical illnesses.

Long Term Care Insurance is solution to help pay for the costs of home care or institutional care when required.

The next few articles will deal in more detail with each type of insurance in the life and living benefits insurance category.

We hope you will find this information valuable and will increase your financial confidence. You can always find these articles on our website www.actionfinancialgroup.com.

Karin Rimnyak, Certified Financial Planner®

Investment Advisor



David Dryburgh, Certified Financial Planner­®
Investment Advisor


Ian Barrie, Certified Financial Planner®
Investment Advisor


This information has been prepared by Karin Rimnyak who is an investment Advisor for iA Private Wealth. Opinions expressed in this email are those of the Investment Advisor only and do not necessarily reflect those of iA Private Wealth. iA private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

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