Insurance helps protect you and your loved ones against the cost of accidents, illness, disability, and death. It is also a tool to help preserve the wealth you have already accumulated.
Establishing whether or not you need insurance should be a part of the larger conversation you have with your financial adviser. If you decide to purchase insurance, check to see if the broker you are working with is licensed to transact business in Manitoba. Check the Insurance Council of Manitoba’s website for licensing and past disciplinary information.
Types of Insurance
Life, critical illness, disability, and long-term care insurance
Life, critical illness, disability, and long-term care insurance are typically the most common types of optional insurance individuals may choose to invest in.
- Life insurance is designed to help your loved ones handle the financial impact of your death. A life insurance death benefit is tax-free and is intended to cover funeral expenses, pay off your debts, replace your income, provide for your dependents or be provided to charity. You can choose term or permanent life insurance. Term covers you for a fixed period such as 10 or 20 years, or until you reach a set age. Permanent provides coverage for your lifetime, and you can choose whole or universal. In a whole life plan, your premiums won’t change as you get older. With universal life insurance, you combine your insurance plan with an investment account – you can make withdrawals or take loans, increase/decrease your premiums, and choose how your premiums are invested.
- Critical illness insurance is a form of health insurance that provides a lump-sum payment should you become seriously ill.
- Disability insurance can help protect you and your family from an unexpected illness or accident that leaves you unable to work and earn an income.
- Long-term care insurance can provide coverage if you become unable to care for yourself and need assistance to manage daily living activities.
For more information, visit https://www.canada.ca/en/financial-consumer-agency/services/insurance.html.
Home, Tenant, and Auto Insurance,
- Home insurance protects your home and contents in the event of theft, loss or damage. Depending on your policy, it may also cover the damage or injury to others who visit your property, as well as damage you cause to another property (e.g., a tree on your property is struck by lightning and crashes down on your neighbour’s home).
- Tenant insurance, sometimes called ‘renters insurance’, helps you pay for damage to your personal property in an apartment or rented home caused by events like theft, fire, smoke damage, or vandalism. It also protects you if you or a guest cause accidental damage to the building, living expenses if you cannot stay in your home, and may protect against certain types of lawsuits.
- All vehicles in operation in Manitoba must be covered by basic auto insurance. Insurance protects you from accidental damage to your vehicle caused by collision, vandalism, theft, flooding, hail, storms, fire, and explosions. For more information on auto insurance, visit the Manitoba Public Insurance website.
Other forms of optional insurance
Health insurance complements your provincial or territorial health plan (e.g., Manitoba Health) by covering additional medical expenses such as ambulance services, medication, dental and eye care, or special nursing services. Health insurance can also supplement your income in the event of major illness or injury and can cover medical expenses while traveling abroad.
Travel insurance typically covers you in the event of flight cancellations, trip interruptions, lost luggage and documents, as well as life, health, and disability expenses while abroad. In some cases, you may already have travel insurance via your credit card. It is important to note that travel insurance may be required to obtain a tourist visa for some countries.
Tip: When you get a line of credit, mortgage or another type of loan, your financial institution may offer credit insurance. Credit insurance is optional and covers your loan payments if you can’t make them due to illness, accident or death. The only time that mortgage insurance is required is when you are not able to make a minimum down payment.