Julie worked for 30 years as a doctor to provide a great life for herself and her partner, Sarah.
Now ready to retire, she expected that between her investments would carry them both through retirement comfortably. Sarah’s sudden diagnosis of Alzheimer’s in her 50s took the pair by surprise—she soon required extensive, round-the-clock care. While Julie felt like she could afford it, her desire to provide the best possible support for Sarah meant that their savings were diminishing significantly. Julie also was interested in experimental treatment offered in the US, but was worried that to go ahead, she might have to remortgage their home—one that she had hoped to pass on, debt-free, to her extended family.
Like Julie, many rely on life insurance during their working years to protect their loved ones and maintain their lifestyle. In retirement, life insurance can provide for your family’s needs and protect the assets that you intend to pass on.
Long Term Care coverage is there when you need it, to cover nursing or other extensive care. Critical Illness insurance also provides you with a lump-sum payment when diagnosed with an unexpected illness. Both provide a safety net to ensure that your retirement plans stay intact, no matter what challenges you may face.
Health and dental
Unless you have extended health benefits as part of a pension plan, it’s likely that your health and dental expenses will not be covered in retirement.
Health insurance can cover costly expenses such as prescription medication, medical supplies, vision care, private hospital rooms and special home care—ensuring you have the preventive, therapeutic and long-term care options you need to age comfortably.
As with life insurance, the younger you are when you apply for your health insurance policy, the lower your premiums are likely to be.
Critical illness and long term care
Critical illness insurance
Critical illness insurance provides extra resources when a medical diagnosis takes you by surprise—paying out a tax-free cash lump sum if diagnosed with a covered condition. Typically, serious conditions such as cancers, heart attack, stroke or coronary bypass are covered.
The funds are yours to use, however you need: to pay for treatments, equipment and expenses or to take a family vacation.
Long-term care insurance
Long-term care (LTC) insurance can help when you are unable to care for yourself. It provides money for stays in nursing homes and chronic care facilities, or for the services of an in-home caregiver. Longer life expectancies, lower investment returns and the rising costs of nursing care make LTC insurance worth considering.
Will my beneficiaries have to pay income tax on the death benefit?
No. Death benefits are tax-free to your beneficiaries. However, if your beneficiaries pass away before you do, the death benefit will be paid to your estate and may be subject to Estate Administration Taxes (probate). That’s why it’s important to keep your beneficiary information up-to-date. It’s also a good idea to name a secondary or contingent beneficiary in case you outlive your primary beneficiary.
It’s never too late to purchase life insurance. While the price of your policy depends upon your age, other factors are considered, such as your medical history and living habits. To prepare for retirement, try to start your policy as soon as you can. An early start, combined with a healthy lifestyle (staying active, non-smoking), will significantly lower your costs.
Life insurance can be used to:
- Protect assets for your beneficiaries
- Provide income for your children, spouse, or other people who depend upon you
- Cover debts, funeral costs, legal and executor fees
- Pay any income taxes you might owe at death
- Help grandchildren, especially for their education
- Provide support for charities that you care about
Our Wealth Protection Specialists will work collaboratively to customize a solution for you. We’ll ensure you’re fully protected, while avoiding extras you won’t need.