Can’t Buy Me Health: Financial Planning for Future Health Concerns

07 Oct Can’t Buy Me Health: Financial Planning for Future Health Concerns

Life is not for the faint of heart.

As longevity increases, it becomes more common for Canadians to face a serious illness before their death. In fact, data from Statistics Canada suggests nearly half of Canadian deaths can be attributed to cancer and heart disease alone.[1]

While money can’t protect you from suffering from these health issues, it can buy you protections to help you weather the storm more comfortably.

These protections don’t happen by accident. They’re more often the result of careful planning over a lifetime.

Set yourself – and your family – up for success by following these best practices:

• Start early. You never know when a serious illness may hit. So even if you’re young, it’s a good idea to get started now. For example, your employer may offer long-term disability coverage or life insurance. Make sure you understand what it covers and secures additional coverage if necessary. Also, take steps to find a financial advisor to assist with the planning. This takes time, so it’s a good idea to begin before you are stressed about it.
• Pay down debt. Aside from a reasonable mortgage and a car payment, debt is a huge stressor. The more debt you rack up – whether through unnecessary splurging or in paying the bills – the harder it will be to manage if you can’t work for some reason. If you do have debt, prioritize paying off that debt.
• Build an emergency fund. Unexpected expenses crop up all the time, and they won’t stop just because you’re having a health issue. Whether it’s a car accident or a basement flood, an emergency fund helps you cover costs you didn’t plan for. Start putting money away as soon as possible, even if it’s just $20 a week. As your income grows, that emergency fund will grow too.
• Secure coverage. When a health crisis hits, it’ll be too late to go shopping for supplemental insurance – and it might not even be available once you’ve been diagnosed with something serious. Learn what your provincial healthcare covers, and take steps to secure supplemental insurance to cover your needs above and beyond that, if necessary. That way, when the worst happens, you will be able to provide for all your health needs.
• Consider purchasing additional protections. When the worst happens, there may be a period of time when you cannot work. At exactly the same time, you may wind up with additional expenses. That’s why it’s a good idea to make sure you have sufficient life insurance, long-term disability insurance and critical care insurance, above and beyond what your employer offers. These protections can help provide a cushion of support for you and your family in the case that you aren’t earning an income.

You never know what’s coming down the road. But taking proactive steps to prepare for the future requires you to take into account every possibility – even the unpleasant ones.

To learn more about preparing your estate, contact us.

[1] https://www150.statcan.gc.ca/n1/daily-quotidien/201126/dq201126b-eng.htm

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.