Taming your financial elephants

Posted by Admin on August 26, 2010

When there’s a huge, important issue that no one wants to talk about, it’s often said, “There’s an elephant in the room.”

If an elephant threatens to trample your financial security, it’s important to start taming it, by discussing it with a financial security advisor.

Many people pretend their elephants aren’t there. However, the risks their elephants represent are very real: death, critical illness and disability, all of which can have dramatic effects on their families, businesses and quality of life.

Do you recognize any of these elephants?

Elephant #1 – “If one of us died, or became disabled or critically ill, we might not be able to pay the bills.” In fact, 30 per cent of families with children say if a parent died, they’d immediately have trouble meeting everyday expenses (Source: LIMRA, Canadian Families at Risk, Life Insurance Awareness Month, September 2007).

Elephant #2 – “We might never save enough to retire.” Sixty-eight per cent of Canadians say the biggest threat to reaching their savings goals is a serious medical condition or disability. Forty-nine per cent cite the death of a spouse or partner as a threat (LIMRA, Canadian Critical Illness Insurance Market Study, 2008).

Elephant #3 – “My business might go under.” Only 10 per cent of small and medium-sized businesses have a formal, written succession plan (Canadian Federation of Independent Business, SME Succession: Update, October 2006).

Elephant #4 – “My family might face a mountain of debt.” People near retirement often worry about future medical and living expenses. The average Canadian retires at 62. At that age, the average non-smoking couple can expect at least one spouse to live for another 30 years (The Long Stretch in Advocis Forum, December 2008).

If you have financial elephants in your home or business; take the first step to tackling them, managing them and sending them on their way. As part of a complete financial security plan, I can show you how various forms of insurance coverage can help you protect your family, business and quality of life.