sixty year forecast

May 21, 2011 § Leave a comment

Although an actuarial science major, I have never thought deeply about insurance.

No need to think too deeply about mortality. I accepted the term insurance offer when I signed my mortgage papers. I picked the maximum coverage when I enrolled in group benefits at work. Before age 50, life insurance is not that expensive. After age 50, it’s not necessary. not planning to make enough money to make tax planning necessary

Too early to think too deeply about longevity. Retire at age 65. Use retirement savings to pay for living expenses for 10 years. Sell house at age 75. Use proceeds to pay for living expenses including long term care expenses for 10 years. Use retirement savings to fund inflation-linked longevity protection that kicks in at age 85. hopefully inflation-linked longevity protection will be available in the Canadian market before I turn 75

No point to think too deeply about non critical illness. The best insurance is to marry a doctor. The second best insurance is to live in a place with a good public health care system. Because a good public health care system is the best way to keep costs under control.

Denise is considering buying critical illness insurance because hiring a care giver can help alleviate the burden on family members. I’ve always assumed that critical illness & disability would lead to lack of longevity, so it would be okay to use retirement savings. Maybe this is not a good assumption?

S making waffle brunch

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