What Types of Insurance Should I Consider to Protect My Finances?

Ever feel like insurance is just a bunch of paperwork and monthly payments that might pay off someday?

You’re not alone.

But here’s the thing — insurance isn’t just another bill. It’s a financial life jacket. It gives you peace of mind that when life throws a curveball (and it will), your bank account, family, and future won’t suffer.

In this blog, we’ll break down the key types of insurance everyone should consider to protect their finances. No jargon, no fluff — just straight talk that helps you make smart decisions.

From accidents to illness to natural disasters, unexpected events happen all the time. Insurance helps you transfer that risk to someone else (the insurance company), so you don’t carry the full financial burden.

Insurance isn’t just about “things” — it’s also about protecting your ability to earn and build wealth. If you’re unable to work, or face a big loss, insurance can keep your financial goals on track.

This one’s a no-brainer if you have dependents or debt.

• Why it matters: It provides a financial cushion for your family if you pass away unexpectedly.

• Types:

  • Term life insurance: Affordable and straightforward

  • Permanent life insurance: Includes lifelong coverage and cash value (more flexibility)

✅ Pro Tip: Start young — it’s cheaper and you lock in better rates.

Often overlooked, but so important.

• Why it matters: If you’re unable to work due to illness or injury, this replaces a portion of your income.

• Types:

  • Short-term: Covers a few months

  • Long-term: Covers longer recovery periods or permanent disability

📌 In both Canada and the U.S., employer plans may offer some coverage — but it’s rarely enough.

Yes, Canadians have public healthcare — but not everything is covered.

• In Canada: You may still need private insurance for dental, vision, prescriptions, and travel.

• In the U.S.: Health insurance is essential to avoid massive medical bills.

🩺 One ER visit can cost thousands — even with coverage. Don’t skip this.

Protects your biggest investment — or your stuff if you rent.

• Covers: Fire, theft, water damage, liability if someone gets hurt at your place

• Landlords often require it, especially for renters

🚪 Peace of mind when you’re away or during extreme weather events.

Mandatory in both Canada and the U.S.

• Covers damage, liability, and injury-related costs

• Premiums vary based on location, driving record, and coverage type

⚠️ Make sure you’re not just going for the cheapest policy — low premiums can mean low protection.

Heading out of the country or even across provinces?

• Covers: Trip cancellations, emergency medical expenses, lost luggage

• In Canada: Provincial health plans don’t cover out-of-country care

• In the U.S.: Many plans don’t cover international emergencies

✈️ A small price for a major safety net while traveling.

Provides a lump-sum payout if you’re diagnosed with a major illness like cancer, stroke, or heart disease.

• Why it matters: Medical treatment + time off work = financial stress

• You use the money however you want — no restrictions

🧠 Think of it as your “get-through-this-rough-patch” fund.

✅ Automate your savings: Set it and forget it — your future self will thank you.

✅ Increase contributions with each raise: Lifestyle inflation is real, but savings inflation should be, too.

✅ Diversify your retirement accounts: Use RRSPs, TFSAs, Roth IRAs, and 401(k)s strategically.

✅ Avoid dipping into retirement funds early: Early withdrawals = taxes + penalties + lost growth.

✅ Talk to a financial professional: You don’t have to figure it all out on your own.

Insurance isn’t just about worst-case scenarios — it’s about having a financial plan that can weather any storm. Whether you’re just starting your career, raising a family, or prepping for retirement, having the right insurance coverage in place means one less thing to worry about.

You work hard for your money — make sure you’re protecting it.

Not sure where to start? I help clients across Canada and the U.S. choose the right insurance coverage that fits their life, goals, and budget.

👉 Book a free consultation now or join my email list and get personal finance tips sent straight to your inbox every week!