Mark Twain once said “Denial ain’t just a river in Egypt.” He was not in denial regarding his eventual death as he had a valid will assuring his daughters would be well taken care of!
We are in denial in regards to wills and insurance planning.
For example: 60% of Canadians die without a will, even though we know its importance. Without a will, the Provincial Government tells you how your estate will be divided. Rest assured that won’t turn out well! Don’t blame the government though – they are only trying to fix the mess!
While you’re thinking about the need for a will, consider the gong show if you lose your marbles! A properly drafted Power of Attorney (POA) will largely solve this problem by appointing someone else to act on your behalf. A POA is a simple document that your lawyer can draft at the same time as your will.
If you don’t know where to start, we would be happy to schedule a quick “Dream Protector” phone call. Feel free to schedule a time by clicking the button below. We’ll pass on some useful resources on wills and insurance planning and point you in the right direction.
The Need for Proper Insurance Planning
Let’s deal with the elephant in the room: Not enough life insurance, disability insurance and critical illness coverage.
Manulife Financial did a survey several years ago with 1,000 Canadian homeowners between the ages of 30 to 50 and household incomes of $50,000 – $150,000. Almost 6 in 10 people said they worried about providing for their family if they died. 7 in 10 were concerned about losing income for a long period because of illness or injury.
Ironically, less than 60% said they have an individual life insurance plan, only 21% have individual disability insurance, and only 13% said that they have individual critical illness protection.
92% of surveyed Canadians do not have a plan that includes all three risks – disability, critical illness and death.
It’s Time to End the Denial.
There is a huge gap between people’s concerns and the real risk. For example, the risk of critical illness, disability or death before age 65 for a 30-year-old non-smoking male is 62.6%. For a woman, it’s 58.2%.
Most people understand the value of proper planning, of having a will and the right amount of insurance. However, the statistics show that we do not act on that knowledge.
All it takes is a proper action plan. We developed a simple tool to take the mystery out of estate and insurance planning. It’s called The Dream Protector Checklist and it’s designed to help you identify the gaps in your plan and understand what to do about them. You can click below to download it.