By Tom Kaufman
The “good life” is personal. It means something different to everyone and that definition usually changes as we go through the various stages of life. Perhaps part of your good life revolves around summer vacations enjoying road trips with the family or taking time to relax with friends at the family cottage. Maybe it means wintering in warmer places or learning to cook in the countryside of Tuscany. Regardless of how we define our good life, once we have had a sampling of it, few of us want to let it slide away. So how can we assure ourselves that we will continue to live that good life?
Continued hard work will of course help keep us where we want to be and with a little luck move us even farther along our personal good life scale. Focusing on a healthy lifestyle will likely help us to enjoy our version of the good life to a greater extent and a longer extent. Good financial planning will help in assuring we have the resources in the future to continue enjoying our good life. Unfortunately, no matter how hard we work, how diligent the lifestyle we choose to lead and how early we plan our financial future, we are simply not in control of everything.
A loss of income from an accident, or an illness, will significantly impact our own ability to maintain that good life not only in the short term but in the long term. If you are a significant income earner for your family, then the good life for each of them suddenly may be in jeopardy.
If you are protected with disability coverage through your workplace, that can be a wonderful buffer – but is it enough? The average workplace disability program will cover 66% of your income up to a maximum and there may be a lengthy waiting period until it begins to pay a benefit. How will that income reduction affect your standard of living? If a critical illness kept you out of the workplace for a year or two is there enough set aside to cover that loss of income? How long would it take to rebuild your retirement assets so you can enjoy the good life when you retire?
Related Read: Plan on Giving? Get a Donation Plan
While life insurance is a crucial element of good financial planning as it can provide the resources your family would need in the case of unexpected or premature death, it does not help deal with permanent or temporary loss of income. New insurance products are now available that focus on filling the income gap that a survivable critical illness such as cancer will cause.
It may be worth exploring how you can ensure that the good life you and your family are enjoying remains firmly in your grasp.
Would you like to know more? Visit Tom Kaufman’s profile.
Back to 2015 Summer ProvERB Insurance Bulletin.
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