As a child, your parents probably gave you That Talk… you know, the one about “the birds and the bees.” And now, as an adult and a parent yourself, it’s your turn to have the same talk with your children.
However, what few parents consider discussing with their kids is what to expect from life as they grow and how to protect themselves from unexpected health risks.
And that goes beyond the birds and the bees.
The fairy tale
As children, many of us assume that our lives will follow an easy and straightforward path. First, we’ll graduate from high school, college or university. Then we’ll go on to start a successful career, get married and have a family. From there, we’ll enter our prime money-making years, retire at 65 and eventually pass our estate on to our children.
It’s a lovely, happily-ever-after fairy tale.
The reality is, as many of us have learned along the way, it isn’t always that simple. Careers can be disrupted by market downturns or failed businesses. Marriages can end up in divorce. Prime earning years can be stunted by critical illness. Retirement funds can be whittled away by living too long.
While new parents usually try to invest in life insurance when starting a family in case the unthinkable happens, some sobering statistics about unforeseen illness or disability can also push aside the fairy-tale life.
So… what do these stats say?
While many of us understand the importance of life insurance, the truth is that insurance against an accident or disease that prevents you from working is arguably even more important. A typical 30-year-old has a four times greater chance of becoming disabled than (s)he does of dying before age 65. One in six Canadians will be disabled for three months or more before the age of 50.
A 40-year-old non-smoking male or female has a 45% chance of becoming critically ill or disabled before retiring at the age of 65.
Your kids need to think about how they would manage their daily expenses if they suddenly became sick or disabled and unable to work? Expenses like the mortgage, the heating bill, car payments, and all those grocery store bills. Where would the money come from and how would they maintain their current lifestyle?
How would they protect themselves from the unforeseen?
It starts with a talk
When they’re old enough to understand, explain to your kids the insurance policies you’ve invested in and why. Teach them about the importance of things like disability insurance and critical illness insurance to safeguard them against the unexpected. Kids need to know that while they may plan to have a perfect life, much of what actually happens cannot be predicted or foreseen.
They need to know that insurance sets them up with a plan to protect their future. The more they know the more they will be inclined to make the right insurance decisions for themselves when the time comes.
Knowledge is power. Knowledge is wealth.
We’re here to help
At BG Financial Strategies, we can provide you with tactics to help you explain to your kids the benefits of having disability and critical illness insurance.
For younger kids, it could be a fun and engaging game using play money. We can share with you some game tactics for doing this.
For older kids, it could be a heart-to-heart talk about the different plans you’ve signed up for, and how you manage installment payments for these plans.
Please reach out to us for more insights and practical tips. We look forward to sharing our experience with you.