Protect What Matters Most withPersonalized Insurance Planning

Insurance works on the principle of **risk transfer and pooling**. You pay a smaller, regular amount (a "premium") to an insurance company. In return, they agree to cover a much larger, uncertain financial loss if a specific event occurs. The company pools premiums from many clients to pay for the claims of a few, effectively spreading the risk across a large group so no single person is financially devastated by an unexpected event.

The main difference is the duration of coverage and cost:

• Term Life Insurance: This is the most affordable and straightforward option. It covers you for a specific period (the "term"), like 10, 20, or 30 years. It's ideal for covering temporary needs, like a mortgage or the cost of raising children. If you outlive the term, the coverage ends.
• Permanent Life Insurance: This covers you for your entire life, as long as premiums are paid. It is more expensive but includes a savings component called "cash value" that can grow over time. It's often used for estate planning or lifelong protection needs.

Disability insurance is often called "paycheque insurance" because it protects your most valuable asset: your ability to earn an income. If you suffer an injury or illness that prevents you from working, this insurance replaces a significant portion of your lost income. It's crucial because a sudden loss of income can be more financially devastating for a family than almost any other event, and your chances of becoming disabled during your working years are surprisingly high.

A simple method for a rough estimate is the DIME formula. It ensures you cover your family's biggest financial obligations. Add up the following:

• Debt: All non-mortgage debts (car loans, credit cards, student loans).
• Income: Your annual income multiplied by the number of years your family needs support.
• Mortgage: The remaining balance on your mortgage.
• Education: The estimated future cost of your children's post-secondary education.

The total of D+I+M+E gives you a solid starting point for your life insurance needs. A financial advisor can help you refine this number.

Your insurance needs change as your life changes. It's wise to review your coverage every few years, and especially after any major life event, such as:

• Getting married or divorced
• Buying a new home or taking on a larger mortgage
• Having a baby or adopting a child
• Receiving a significant salary increase or changing jobs
• Starting a business