It is a good idea to have insurance. Insurance is a way of managing risks and making sure that everything is protected. Accidents and disasters can and do happen, and if you aren’t insured, it could leave you in financial ruin. You need insurance to protect your life, and to keep a roof over your head. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee. Insurance companies invest the funds securely, so it can grow, and pay out when there’s a claim.
There are so many types of insurances that you can buy, but only a handful of insurances are important that you need to have for now. You can consider the below insurances.
Disability Insurance should also be called a pay cheque insurance, simply because if you are rendered disabled and cannot work, then who will pay you if you don’t work!
Unless you have friends and relatives who are willing to support you till age 65 (which is when you can apply for some old pension etc), you are dependent on these friends and relatives to support you every month.
Or, if you do not have any resources, then you should have a disability insurance in place. Disability can happen due to 2 reasons, accident or illness.
Saving for your child’s education
Commonly known as RESP, i.e. Registered Education Saving Plan. The government provides education till high school, but you are on your own after high school.
So, pursuing a college or a University Education will cost you and you need to be prepared for that.
To help parents prepare and plan, the government introduced some incentives help parents save for their child’s education.
The first help is that the government gives you is a grant of 20% on every dollar you save for the child’s education to a maximum of $7200.
You can start a saving plan for as low as $25 and gradually increase the saving as your income grows.
The good news is that the government also provides extra grants to low income families, and if you are a new immigrant and settling down, you may qualify for the same, and you should avail the opportunity to obtain the extra grant.
You buy life insurance based on your requirements and not what your friend or neighbour has! Now, the biggest question is how much is how much? Well, it depends on what your requirements are?
In other words, it is also called a needs analysis. The biggest benefit of life insurance in Canada is that it is paid out Tax free!
There are many types of insurances available, for e.g. you can buy a policy for 10 years, 20 years or permanent. There are also some permutations and combinations available to suit your needs.
Also called Medical Insurance which is the primary concern whether you are travelling outside Canada or coming to Canada as a visitor or landed immigrant.If you are immigrating to Ontario, Canada, you are required to wait for 90 days after you land here before your OHIP Insurance can start covering you. An average charge for the hospital per night can cost you approx $3,000. Its very important that you have travel insurance and to a good amount.Similarly, if you are a resident of Ontario and now visiting another country, you should try and obtain some travel insurance as OHIP may not cover you for everything.