As the new year rolls in, many of us naturally start thinking about our goals. Often, we concentrate on improving physical and mental health — committing to more exercise, healthier eating, daily meditation, quitting smoking, or lessening our social media time. But there’s another crucial aspect of well-being that deserves attention: financial health, including the often-overlooked importance of insurance.
Have you considered focusing on you and your family’s financial status in 2024? Insurance can play a key role in this, and the right coverage can help safeguard you and your family’s financial stability in the face of unexpected events. While maintaining financial health should be a continuous effort, the New Year provides an excellent opportunity to reassess and potentially upgrade your financial and insurance plans so your family is well-protected for the year ahead.
To lay a strong foundation for your family’s future, a comprehensive financial plan is essential. Assess your insurance needs – consider factors such as your age, which can influence the type and amount of coverage you need; your health status, such as pre-existing conditions or lifestyle choices, which can impact your insurance options and premiums; and your family responsibilities, where dependents or a spouse might require additional financial protection in your absence. Also, evaluate your financial obligations, like mortgages, loans, or education expenses, to ensure your insurance coverage can adequately cover these in the event of an unexpected incident.
Determine the best type of insurance for your situation, whether term or permanent. Term insurance, typically more affordable, provides coverage for a specific period, making it a good fit if you’re seeking protection for a defined time, such as until your mortgage is paid off, or until your children finish college. On the other hand, permanent insurance, which includes whole life and universal life policies, typically offers lifelong coverage and the possibility to accumulate cash value, making it suitable for those looking for a long-term safety net for their loved ones, along with a cash value component. Weigh the pros and cons of each depending on your life stage and long-term goals, making sure you choose an insurance policy that aligns with your current needs and future aspirations.
Being resilient means having the strength and flexibility to bounce back from adversities, effectively adapt to changing situations, and continue moving forward despite challenges. Resilience extends across several dimensions of life. Mentally, it requires a positive mindset and problem-solving abilities to overcome obstacles. Emotionally, it involves processing emotions constructively and effectively managing stress. Financially, you need to be well-prepared for life’s curveballs to avoid derailing your long-term goals.
A significant aspect of helping your family create financial stability or resiliency is choosing the right insurance products. Life insurance plays a crucial role in helping ensure your family’s financial stability in your absence by helping cover essential needs and contribute to future plans. A critical illness rider is an add-on to a standard life insurance policy that provides additional coverage for specific serious illnesses. This often covers illnesses such as cancer, heart attack, stroke, organ transplants, and sometimes more, depending on the policy. The payout from a critical illness rider can be used for medical expenses or compensation for lost income during recovery. Other examples of insurance riders are accidental death rider, which pays an additional death benefit if your death is the result of an accident, and disability income rider, which provides a regular income from the insurance company if you become disabled and unable to work.
To help bolster your own financial resilience, consider creating an emergency fund. Start with a monthly savings goal, even if it’s a small amount, and treat it like a non-negotiable bill. You might also explore side hustles or part-time work for extra income. Easy side hustles include freelance work such as writing, graphic design, or virtual assistance, which you can do from home and fit around your current schedule. Aim to cover 3-6 months of living expenses to create a financial buffer that can sustain you during unforeseen circumstances, such as job loss, medical emergencies, or unexpected major repairs.
Keep the momentum of personal growth going, even after the initial New Year excitement fades, by setting incremental goals. Smaller, more manageable objectives help maintain focus and provide a sense of achievement that fuels motivation. Embrace lifelong learning by constantly seeking new knowledge and skills, which can range from online courses to attending workshops. Cultivating a growth mindset is also key. View challenges as opportunities and learn from failures.
Networking and seeking feedback from diverse individuals can offer new perspectives and opportunities. Prioritize self-care and wellness, as a healthy mind and body are foundational for continuous personal development. Experiment and take calculated risks, stepping out of your comfort zone to explore new possibilities.
Integrating all of these practices with a strong focus on maintaining relevant and comprehensive insurance coverage can help create a robust framework for personal transformation and supporting your family in the future.
Looking for insurance but worried about medical exams and complicated processes? Canada Protection Plan simplifies it for you. Apply easily over the phone, right from the comfort of your own home. With us, there are no medical1 exams required, ensuring a hassle-free experience. Plus, enjoy competitive rates and comprehensive coverage tailored to your needs. Connect with us today.
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Foresters and Canada Protection Plan (CPP), and their employees and life insurance representatives, do not provide, on Foresters behalf, financial, estate, legal or tax advice.