432-909, 17th Ave SW, Calgary, AB, T2R 0A4

Remove all the guesswork from your retirement:

Risk Management and Insurance Strategies are Included In Your Financial Plan

Risk Management and How it Applies to Your Financial Plan

As financial planners, we are acting as financial coaches, so let’s quickly look at money as a sport.

If wealth-building is a sport, the sexiest and most appealing moments are often the offensive, you know, scoring the points, like high returns on your portfolio. 

However, there are some things could knock you out of the game, even if you’re in the lead. So a comprehensive financial plan must also look at defensive strategies such as risk management, including insurance and legal considerations.

Swords representing offensive financial planning strategies such as investment management , retirement planning and taxes
Shield Representing Defensive Strategies in financial planning including risk management insurance and legal considerations

We Manage Risk Because You Could be Ahead and Still Lose the Game.

Think about it; you must have seen a game, whether it’s basketball or hockey, where somehow your favourite team was in the lead but somehow lost the game? Like the Raptors squandering a 30 point lead? Most of the time, it’s the defense. Your finances are no different, you could be ahead in your wealth building and amass a fortune. But an illness, or an extended job loss could result in draining your savings and potentially liquidating your investments. 

A Complete Financial Plan Will look at protecting your income and Your Assets Through Life Insurance Plans, Critical Illness Plans and Other Insurance Products.

A complete financial plan will look at protecting your income and your assets. When addressing risks for your financial plan, simply ask yourself: “What are the things that could take you out of the wealth-building game that we must be aware of?”

Here are the most common areas of concern we must plan for:

The Risk of Job Loss

The Risk Of Getting Disabled and Losing Your Income

The Risk Of Illness and Losing Your Income

The Risk Of Premature Death.

Risk of Litigation (Legal Liabilities)

Risk Of Property Loss.

Did you notice that we did not include the risk of loss in your portfolio on our list? That’s because financial risk management must already be part of your investment plan.

So How Do We Create Your Financial Plan Even With These Potential Set-backs?

Luckily preparing for these risks is simple. You can create a savings strategy to protect your lifestyle during a period of job loss, and you can look at insurance to cover the rest.

Emergency Fund

We can help you fund your Emergency Reserves: Your Emergency Reserves or your rainy day fund should do exactly what the name implies; it covers you in times of emergency. It could be an unexpected expense, such as a car breakdown, it should also cover you in case of a job loss. 

The rule of thumb is that your emergency fund should be 3-6 months of your monthly income. If you have a stable career and could easily find new employment, three months is sufficient most of the time. 

However, your job could be highly specialized and less predictable. Having 6 months of your income would likely provide you with more comfort. The first step when setting up emergency cash should be to at least meet your property insurance deductibles.

Disability Insurance Will Protect Your Biggest Asset

A home with a price tag of 524,000. to compare the value of lost income
A lady earning a paycheque and a price tag of 1921818 to represent total lost income due to disability

We can insure your income through disability insurance: Disability insurance is here to protect your biggest asset, your ability to earn a living.

According to the Canadian Real Estate Association, the average price of a home sold was $540,000 in February of 2020, while a 40 year old earning $60,000 per year would lose $1,921,818 in earning potential if they stopped working today.

Your income is the driver to your ability to save, fund your lifestyle and your investments.


We can make sure you don't deplete your assets if you get critically ill through critical illness insurance.

We are fortunate that our universal healthcare system covers direct healthcare and hospitalization costs. The other costs of a serious illness can be devastating. That’s what Critical Illness insurance is for. Critical Illness policies will help you carry additional costs while recovering from a serious illness. If you were to get diagnosed with a covered condition, it would provide a tax-free lump sum benefit. 

Here is a list of typically covered by some of the top Canadian insurers.

  • Acquired Brain Injury
  • Aortic Surgery
  • Aplastic Anemia
  • Bacterial Meningitis
  • Benign Brain Tumour
  • Blindness
  • Cancer (Life Threatening)2
  • Coma
  • Coronary Angioplasty
  • Coronary Artery Bypass Surgery
  • Deafness
  • Dementia including Alzheimer’s Disease
  • Early Cancer- Carcinoma In Situ
  • Early Breast Cancer
  • Early Cancer – Malignant Melanoma
  • Early Prostate Cancer
  • Early Skin Cancer
  • Early Stage Blood Cancer/ Lymphocytic Leukemia
  • Early Stage Intestinal Cancer
  • Early Thyroid Cancer
  • Heart Attack
  • Heart Valve Replacement or Repair
  • Kidney Failure
  • Loss of Independent Existence ( LONG TERM)
  • Loss of Independent Existence ( SHORT TERM)
  • Loss of Limbs
  • Loss of Speech
  • Major Organ Failure on Waiting List
  • Major Organ Transplant
  • Motor Neuron Disease
  • Multiple Sclerosis
  • Occupational HIV Infection
  • Paralysis
  • Parkinson’s Disease and Specified Atypical Parkinsonian Disorders
  • Severe Burns
  • Stroke

We Can Use Life Insurance to cover the Financial Loss from Death.

No one likes to address their mortality, but the fact remains that death is a matter of when and not if. Life insurance would protect your family from financial burden if you or your partner were to pass away while you still have liabilities and financial dependents.

We can use term life insurance to provide coverage for liabilities that will be settled eventually, such as mortgages and car loans. In contrast, permanent insurance provides coverage for life insurance needs that will not go away with time. You need permanent insurance for Estate planning purposes, leaving an inheritance and making sure there is enough cash to pay taxes when your family receives their inheritance.

We can Audit Property Ownership/Registration of your assets and review liability insurance.

We can audit property ownership registration of your business assets and review liability insurance to make sure you and your family maintain your wealth if you are ever sued and found liable. We will also work with property and casualty insurance experts to make sure you have adequate personal and professional liability insurance should you need to seek additional coverage.


We can Audit Your Home and Auto Policies to Make Sure it Matches the Current and Full Values of Your Assets.

We can audit your home and auto policies to make sure it matches the current and full values of your property in case of an accident or other potential property exposures. We will give you access to a network of insurance brokers who can match you with the insurance policies you actually need and nothing more.

Hervin Pesa Author Picture

Time to Align Your Money With Your Values

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