Cash Flow  

Consider Cash Flow Banking to save for major expenses (like your first car or down payment on home) and manage variable cash flow through the year (i.e. time off without pay for teachers, extra vacation expenses, etc.). Consider setting this in place before registered accounts like RRSPs and TFSAs. 

Don’t Take Your Health for Granted 

I believe every Canadian who qualifies for Critical Illness Insurance (link to critical illness page) should buy it, and it is cheaper if you put it in place at a young age.  This is an extremely important coverage many overlook.   

If you think it is likely you will start a family in the next several years, put your life insurance in place now.  Waiting until a baby is born is too late.   

If you aren’t planning a family soon, consider taking out a small amount of inexpensive term life insurance, like $250,000 (above whatever employee benefit you may have).  Then you will have it in place regardless of how your health or employment changes.   

Your disability insurance provided by your employer should be reviewed, and any gaps filled.  Most employer-sponsored disability plans have an “any-occupation” clause, meaning after two years if you can drop a fry basket or do any job of any sort, they are taking you off claim.     

Saving for Retirement 

If you have strong cash flow and are able to save funds each year, consider insurance based solutions over RRSPs and TFSAs;  you will have plenty of time to take advantage of registered accounts.  It can be advantageous to get the other retirement solutions working first to build your intelligent retirement solution.

Travel Insurance 

If you are travelling outside your province of residence for a trip, you should have Travel Insurance for the trip. I would suggest not even crossing the border into the US for a tank of gas without travel insurance. 


© 2016 Doug Ransom - Insurance Advisor