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Preserve your assets in sickness and in health

Long-term health care can help ease financial stress

Think about your day – you wake up, get out of bed, take a shower and get dressed. We take those everyday activities for granted. Yet, every morning there are thousands of Canadians who face the reality of needing help with these basic tasks because they suffer from a critical illness or injury.

By Allan Morse
Protecting your assets from the unexpected

There’s more to asset protection than making sure all your investment eggs aren’t in the same basket. It’s also about making sure your assets won’t be eroded if you experience an unexpected illness or accident. Physical health and financial health go hand-in-hand.

The cost of illness

If you unexpectedly suffer an illness or injury that leaves you needing help with everyday tasks, you could face many health-care related expenses.  

  • Personal care or nursing care in your home
  • Equipment or medication costs not fully covered by the government or group plans
  • Travel-related costs if treatment is not available locally (i.e. gas, air travel, food, lodging)
  • Higher living expenses for example, additional child care, home repairs or home maintenance
  • Family members may lose income due to having to reduce their hours or even give up their careers to provide care while you recover
It's all about being able to retire in peace
Time to bank away your earnings

How will you pay for care?

The cost of daily activities while you are ill can be high especially since there are limitations to what the government can provide. Quality care can easily cost several thousand dollars per month. 
It’s important to think about where you might find the extra money to fund this “additional cost.”

  • Family care may be another option. But this can put enormous financial, physical and emotional stress on your family members who may have children and obligations of their own. 
  • Investments also seem to be an easy answer, but depending on the type of care you require, a nest egg of $500,000 can be depleted in just 10 years. Withdrawing from your registered savings plan (RSP) can impact your retirement plans and have tax consequences.     
Financial peace of mind for you and your family

If you think these options are an expensive way to pay for care, you’re right. Planning ahead is the best way to maintain independence and dignity if faced with a serious illness or the inability to care for yourself.  Make sure you protect your family and your wealth from unexpected illness. Talk with your Investment Advisor today about long-term health-care plans.

Allan Morse is Vice President and an Investment Advisor with RBC Dominion Securities Inc. in Charlottetown, PEI. Member CIPF. Allan can be reached at 1-800-463-5544 or at allan.morse@rbc.com. This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. Hold on, you won't believe what will happen in the next five years. If Management has not stayed ahead of the wave, then he/she is currently under a great deal of business stress.  

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