A strong financial plan should include investments that support your short - and long-term goals, such as preparing for retirement, purchasing a home, or planning for that once-in-a-lifetime trip. Equally important is protecting your financial future from the strain of unexpected life events - such as serious injury, long term illness, or death. By integrating the right insurance into your financial plan, you can create a stronger foundation for yourself and those who depend on you, helping preserve your financial security.

Protect your ability to earn income

One of your most valuable assets is your ability to earn income. If that ability were derailed by an unexpected accident or extended illness, government or work-sponsored programs may help if you meet their qualifications, which can be strict. But they may not provide sufficient income replacement to maintain your lifestyle. A solid financial plan includes solutions, such as emergency funds to maintain your lifestyle if you were to lose your income for an extended period of time. While it may be an unpleasant subject, taking action now will put you in a better position if you or anyone else who depends on you ever need this kind of support.

Protect your day-to-day needs

While the above focuses on your work outside the home, if you have children you may have another significant effect on your family’s budget: the unpaid labour you provide. You may be called on to cook, chauffeur, manage the house, tutor and care for young children. You can take measures now to ensure your family could pay for this care if you weren't there to provide it.

The importance of life insurance for long-term stability

There are two types of life insurance in Canada; Term Life insurance, which offers affordable protection for a fixed period such as 10, 20, or 30 years, and Permanent Life insurance, which provides lifelong coverage and builds cash value over time through an investment component. Protecting yourself and those you love is essential, because an unexpected loss can place significant financial strain on surviving family members. According to Statistics Canada, women who became widows under the age of 55 in 2021 saw their "average adjusted after tax family income fall from $64,700 the year before losing their partner to $49,600 the year after"¹, illustrating why proper insurance coverage is critical for maintaining financial stability.

If you do become a widow, you may also be eligible to apply for the CPP Survivor’s Pension, which provides monthly financial support to help offset the loss of household income. For additional information click Survivor's Pension - Canada.ca to determine if you qualify.

It can be as simple as meeting one on one with a financial advisor to identify your goals and the solutions that can help you achieve them and then incorporating those strategies into your financial plan. It is never too late to include insurance in your budget to help protect your finances against unexpected risks.

We can help

At Edward Jones, we can help you build a comprehensive financial plan, explore insurance options, and prepare for your long term care needs. Connect with your local Edward Jones financial advisor to discuss a strategy that makes sense for you.