Insurance Solutions

Segregated funds are investment products offered by insurance companies that combine market-based growth potential with insurance protection features. They function similarly to mutual funds but include guarantees that can help protect your principal and assist with estate planning.

This makes them an appealing option if you’re looking for a balance between opportunity and security, particularly if you’re nearing retirement, planning your estate, or simply want added peace of mind.

Information to consider:

• Maturity and death benefit guarantees typically protect 75% to 100% of your original investment
• Can offer creditor protection in certain cases—potentially valuable for business owners or professionals
• Bypass probate and allow for a smooth, private transfer of assets directly to named beneficiaries
• Funds are professionally managed, and performance depends on the investments selected
• Fees may be higher than traditional mutual funds due to the insurance guarantees included

Why It Matters

• Helps protect your investment from market volatility at key life stages (e.g., retirement, estate transfer)
• Offers reassurance that your beneficiaries will receive a guaranteed minimum amount
• Blends long-term investment strategy with risk mitigation and legacy planning

Life insurance provides a tax-free payment to your beneficiaries if you pass away, protecting your loved ones from financial hardship when they need it most.

It can be used to:

• Replace lost income
• Cover mortgage or debt obligations
• Fund a child’s education
• Offset taxes on your estate
• Leave a legacy

Types of Life Insurance

There are two main categories, and each plays a different role in your plan:

• Term Life:
  Affordable coverage for a set period (e.g., 10, 20, or 30 years). Ideal for temporary needs like raising a family or paying off a mortgage.
• Permanent Life:
  Lifetime coverage that can also build cash value over time. Often used for estate planning, tax-efficient wealth transfer, or charitable giving.

An important part of your financial plan

Life insurance does not just replace income – it provides security, peace of mind, and options. The right coverage ensures your family can maintain stability during a difficult time, and can even serve as a planning tool for your long-term financial goals.

Your income supports every part of your financial life—disability insurance helps protect that foundation if an illness or injury keeps you from working.

If an illness or injury prevents you from working, disability insurance provides a monthly benefit to replace a portion of your income, helping you maintain your lifestyle, cover expenses, and stay on track financially while you recover.

This coverage is often overlooked, but statistically, a working Canadian is more likely to experience a period of disability before age 65 than an untimely death. Disability insurance helps keep your financial plan on track, even if you’re unable to work due to illness or injury.

Why It Matters

• Covers essential expenses like mortgage or rent, groceries, childcare, and debt payments
• Protects your savings from being depleted during recovery
• Provides stability and peace of mind during an uncertain time

Types of Coverage

• Short-Term Disability: Covers income for temporary conditions, such as recovery from surgery or illness (often provided by employers)
• Long-Term Disability: Provides income for extended absences from work—often through to age 65—if you’re unable to return due to a serious illness or injury

Considerations

• Benefits typically replace 60–70% of your income
• Coverage can be tailored based on your occupation, income level, and recovery timeline
• Tax treatment depends on who pays the premiums: personally paid = tax-free benefits; employer-paid = taxable benefits

A serious illness can affect more than your health; it can disrupt your income, decrease your savings, and place additional stress on your family.

Critical illness insurance provides a tax-free lump-sum payment if you are diagnosed with a covered condition such as cancer, heart attack, stroke, or other major illnesses.

Unlike disability insurance, CI coverage is not tied to your ability to work. You can use the funds however you need, whether that is to focus on recovery, seek out specialized treatment, modify your home, take time off work, or simply reduce financial stress during an already difficult time.

Why It Matters

• Gives you financial flexibility at a time when your focus should be on your health
• Can help cover out-of-pocket medical expenses not covered by provincial health plans
• Supports family needs (e.g., caregiving costs, time off for a spouse, childcare)
• Preserves your long-term savings and retirement plan during recovery

What It Covers

• Conditions typically include cancer, stroke, heart attack, MS, organ transplant, and others
• Coverage is customizable, with options for additional conditions or return-of-premium benefits
• Payout is made in a lump sum and is not dependent on your ability to return to work

Who It’s For

• Anyone concerned about the financial impact of a major diagnosis
• Self-employed individuals or business owners without group benefits
• Families who want to protect their savings during a high-cost health event

Long-term care insurance provides financial support if you need ongoing care due to aging, illness, or cognitive decline, and can no longer manage daily activities independently.

It helps cover the cost of care in a long-term care facility or your own home, offering flexibility and relieving pressure on loved ones. This type of coverage ensures you have access to quality care while protecting your savings and preserving your independence.

Important facts to consider

• Benefits typically begin when you’re unable to perform a set number of Activities of Daily Living (ADLs), such as bathing, dressing, or eating
• You choose how benefits are paid: as a monthly amount, reimbursement, or lump sum, depending on your policy
• Coverage can help with facility-based care (e.g., assisted living, nursing homes) or home-based care if you prefer to remain in your own home
• Government coverage is limited and may not reflect your preferences or timing—this insurance helps bridge that gap

Why It Matters

• Protects your retirement income and savings from unexpected care costs
• Reduces financial and emotional strain on family members
• Supports your ability to make choices about where and how you receive care
• Offers peace of mind that care will be available when you need it most

Home care assistance insurance provides financial support for services that help you remain independent in your own home if you experience a decline in health or mobility.

This coverage can help pay for personal care, nursing, rehabilitation, housekeeping, or meal support; these services are often not fully covered by government programs. In many cases, public benefits are limited, income-tested, or may involve long wait times. Having dedicated coverage gives you more choice, flexibility, and control.

Home care assistance is often used with long-term care insurance as part of a broader plan to maintain quality of life and independence in later years.

Why It Matters

• Supports your goal to stay in your home, safely and comfortably
• Reduces the emotional and financial burden on loved ones
• Gives you access to services when and how you need them—not just what’s publicly available