This Go Fund Yourself podcast was hosted by Orlando Ali, a Financial Securities and Life and Health Insurance advisor in Ontario, Canada, who makes these concepts fun and easy to understand. In this episode of Go Fund Yourself podcast – Insurance Needs for Young Families, Orlando talks about the importance of financial planning for new parents in Ontario.
As a new parent in Ontario, it is important to consider the needs of your family, and this includes having life insurance and income protection. With the added responsibility of a child, income protection needs extend beyond just protecting your income in case of disability or critical illness; it now also includes income protection for your surviving spouse and child if you pass away. Therefore, it is essential to consider both living benefits and life insurance needs to ensure that your family can maintain their standard of living based on the location and cover the basic necessities of life.
In addition to income protection, new parents need to consider the savings component of their financial plan. As the family grows, so do the financial needs. Saving for a down payment on a home, a bigger place to raise a child, and for the child’s future education are just a few of the expenses that new parents need to consider. The earlier you start saving, the easier it will be to achieve these goals.
Orlando stresses the importance of protecting your health and insurance in Canada. As your most important asset, your health needs to be protected, and your income and family’s financial security depend on it. Critical illness and disability insurance should be considered to protect your income in case of unforeseen events.
Debt management is also an important part of financial planning for new parents. Although it is common for young adults to have student debt in Canada, new parents need to take a closer look at their debts and make a plan to pay them off. The goal should be to eliminate high-interest debt and free up more money for savings and investment.
In conclusion, starting a family in Ontario or any province in Canada brings about new financial responsibilities that require proper planning and protection. Life insurance, income protection, savings, and protecting one’s health are some of the critical components of financial protection when starting a family. As you navigate the new terrain of parenthood, it’s crucial to seek guidance from financial experts in Ontario and take action to protect your family’s financial well-being. By doing so, you can enjoy the joys of parenting without the added stress of economic uncertainty. It is essential to consult with a financial advisor to determine the appropriate coverage to ensure adequate protection for one’s family.
Disclaimer: This article should not be construed as insurance or financial advice or as an offer or solicitation to buy any products or services mentioned herein. No one should act upon the examples/information without thoroughly examining the legal/tax situation with the appropriate professional advisors.
(1 Desjardins Insurance refers to Desjardins Financial Security Life Assurance Company, a provider of life and health insurance and retirement savings products.)