You probably know that one of the best ways to help take care of your loved ones — whether it’s just the two of you, or you have children — is by having the right insurance and estate planning tools in place. You also know how hard it is to keep everything on track when you’re busy and everything in your life is changing quickly.
To make it easier to ensure you have the proper protection, we’ve gathered tips and money-saving advice for six key risk areas and created a convenient checklist for each one.
Your home
Whether you rent or own, you need to protect your home from misfortune like fire, theft or accidents with renters, homeowners or condo insurance. For insurance to be effective, you need to have sufficient coverage and keep it up-to-date. Review your circumstances to determine if any of these situations have occurred:
- You’ve made renovations, such as building an addition, putting in a new kitchen or installing new hardwood flooring.
- You’ve bought a lot of furniture or accumulated other possessions since you took out the policy.
- You’ve acquired valuable personal items such as jewelry, electronics, art or musical equipment.
- You’ve started running a home-based business.
- You’ve added security features.
Did you know? Installing an alarm system could help you save on your premiums.
Your loved ones
If anything should happen to you or your spouse, an insurance plan could help the other partner cover living expenses and maintain their current lifestyle. If you have children, have you also planned for what would happen to them and how would they be provided for? Consider putting all the life insurance and estate planning basics in place:
- Life insurance can help protect the financial future of your family. Even if you have a group life insurance policy through your employer, it may not supply enough coverage. And, your coverage may end if you leave your employer.
- A Will for both you and your partner can help to ensure that your assets are distributed according to your wishes, and can make final arrangements less of a burden for your family.
- Naming of Legal Guardians for your children provides peace of mind that they will be cared for by someone of your choosing. This is done in your Will.
- A Power of Attorney names someone you trust to act on your behalf to make financial decisions if you are incapacitated. Both you and your spouse may want to consider having one.
- A Living Will (the name of this document varies, depending on where you live) names someone to act on your behalf in health and medical matters.
Did you know? Life insurance premiums generally increase with age, so it’s best to start while you’re young.
Your health
Provincial or territorial health plans and workplace group plans may not provide the amount of coverage that you need. Private health insurance, such as disability insurance and critical illness insurance, can help you manage your expenses, pay your mortgage and pay for medication or treatments by providing tax-free benefits if you suffer a critical illness or disability. Consider updating or obtaining a policy if any of these apply to you:
- You have loved ones who depend on your income to survive and maintain their lifestyle.
- You plan on starting a family.
- You’ve left your job for self-employment or to start your own business.
- You are healthy and earning income. You may not feel you need health insurance, but it can be more difficult to obtain coverage after an accident or health issue arises.
Did you know? Look for a disability policy with “regular occupation” coverage; some policies pay disability benefits only if you can’t perform any kind of work.
Your car
Auto insurance can help to protect you in the event of collision, accident or theft, and the resulting injury to you, your passengers, pedestrians, or damage to another vehicle. To make sure you’ve got adequate protection at the right price, consider the following:
- Liability amount. Instead of getting the minimum required, you may want to consider increasing the amount of liability coverage you have. Even $1 million can be used up quickly if you have an at-fault accident and injure several people.
- Driving record protection. Consider insurance that offers low-cost protection against a premium increase after your first at-fault accident.
- The deductible. Increasing it can lower your premiums. Remember though, you’ll need to have sufficient funds available to cover the deductible.
Did you know? Purchasing your auto and home insurance from the same provider could get you a discount.
Your loans
Creditor insurance covers debts and can help to protect your financial wellbeing — and your family — in the event of death or disability. If you have consumer debt or a mortgage, how would your loved ones cope if you were unable to cover these payments? Key considerations in choosing creditor insurance:
- Tally the amount of debt you hold, and subtract it from your life insurance coverage, to see how much would really be left for your family.
- Opt for coverage suitable for the major types of debt obligations you have: loans and lines of credit, mortgage or credit cards.
Did you know? Creditor insurance is a great way to help health or life insurance coverage go further. It can be used to cover your debt, so that other insurance can be used for your family’s needs.
Your vacation
Travel insurance can help to protect you, and the investment you’ve made in your trip, from unforeseen emergencies by providing trip cancellation and interruption insurance, emergency medical insurance and baggage and personal effects insurance. Here’s what to look for:
- Frequent traveler options. If you travel more than once a year, look for a multi-trip annual plan.
- A provider who’s there when you need help. Look for an insurer who offers 24/7 telephone assistance.
- A family plan. This can save you money when insuring a family vacation.
Did you know? Provincial or employee plans may not provide enough coverage in a medical emergency — and you may have to pay up front and apply for reimbursement.
Get more tips and suggestions about managing risk and managing your finances at rbc.com/family, or stop by your RBC Royal Bank® branch for a Personal Review.
® Registered trademarks of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
Before making any final insurance decisions it is always best to consult with a licenced insurance advisor.
* This information is being provided for general information purposes only and the contents should not be relied upon as containing specific financial, investment, tax or related advice. Clients should seek their own independent advice.
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