Does your protection plan let you sleep at night?

Changing jobs? Moving? Starting a family? Recovering from an illness?  Widowed? These are only some of the events that can affect your life and your family's protection plan. As your family’s needs change, you want to be sure that your plan still works.

Both spouses need to have adequate life, critical illness, and disability insurance to replace their incomes, and an emergency reserve fund to cover the loss of a job and other contingencies. But for most families, insurance to replace income is only part of the solution. Depending on your family's specific goals and circumstances, money also may be needed to cover a mortgage or other loans, taxes, business obligations, or a private school or university education fund for your children.

Once you have a comprehensive protection plan in place, you are in a good position to deal with whatever changes the future may bring. But you should be ready to act quickly to fill gaps in your safety net as

these changes occur.

One major trend in the workplace is the surge in self-employment. More than 2.5 million Canadians - 18% of the workforce - are self-employed. Also, many companies don't offer, or are cutting back on, group benefits.

When you or your spouse change jobs or become self-employed, you may need to increase your life insurance coverage to replace group insurance benefits, or to meet new business protection needs. You might also need to arrange for disability insurance to replace group disability benefits.

If you become self-employed, consider increasing the amount of money in your emergency fund to protect against fluctuations in income. After all, you won't get a severance package if you lose a major customer or client, and cash flow can be tight if you incur unexpected expenses.

As your family income grows, you might buy a bigger home, cottage, or investment property. Additional life, critical illness and disability insurance may be needed to cover a new mortgage or other debts and protect a higher standard of living. Similarly, there may be growing tax liabilities as you accumulate real estate assets, non-registered stocks, or equity funds, or RRSPs. A regular review of your financial plan and insurance needs is the best way to ensure that your family's future will be secure. Also, consult with your advisor whenever there are changes in your financial, employment or marital status. That way, you can make appropriate adjustments before any problems occur.

As you progress through different stages of life, your protection needs are likely to change many times. Call for advice to help you design a protection plan that will let you and your family sleep comfortably at night.

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