FINANCIAL FOUNDATIONS

Protect What

Matters Most

Learn how unexpected events can affect your income, family, responsibilities, and financial plans—and why understanding financial risk is an important part of a strong foundation.

protection BASICS

Some Financial Risks Are Too Large to Handle Alone

Savings can help with many smaller financial surprises. But some events can create financial consequences that are much larger or last much longer. Protection planning starts by understanding those risks.

Risks You May Absorb

Some unexpected costs may be manageable through cash flow, emergency savings, or other available resources.

  • Small repairs

  • Temporary expenses

  • Minor financial disruptions

  • Smaller unexpected costs

Not every financial risk requires the same solution.

Risks You May Need to Transfer

Some events may create financial consequences too large to comfortably absorb using savings alone.

  • Loss of income

  • Serious illness

  • Disability

  • Death

  • Major property loss

Larger risks may require a different protection strategy.

Protection planning is about understanding which risks you can reasonably manage yourself and which risks may need another solution.

what matters

Protection Starts With Your Responsibilities

Before thinking about products, start by understanding the people, income, assets, and obligations that could be affected by an unexpected event.

1. Income

Your income supports everyday expenses, savings, debt payments, and future goals.

Ask what would happen if that income stopped.

2. Family

Dependants may rely on your income, care, and financial support.

Consider who depends on you financially.

3. Financial Commitments

Housing, debt, education, business obligations, and other responsibilities may continue even when circumstances change.

Understand which obligations would remain.

Protection planning begins with understanding what would be financially affected if life did not go according to plan.

income protection

What Happens If Your Paycheque Stops?

For many households, the ability to earn income is one of their most important financial resources. A temporary or long-term loss of income can affect nearly every part of the financial plan.

1. Short-Term Interruption

A temporary interruption may affect your ability to cover regular expenses.

  • Illness

  • Injury

  • Temporary leave

Accessible savings can provide short-term support.

2. Long-Term Disability

A serious illness or injury may affect the ability to work for an extended period.

Long-term income loss can have a much larger financial impact.

3. Permanent Loss of Income

Death can permanently remove income or financial support from a household.

Consider how long-term family responsibilities would continue.

The longer income is interrupted, the more difficult it may be for savings alone to carry the financial burden.

family protection

What Would Your Family Still Need?

If someone who provides income, care, or financial support is no longer able to do so, many household responsibilities may continue. Understanding those needs is an important part of protection planning.

Everyday Living

Regular household expenses may continue even when income or family circumstances change.

  • Housing

  • Food

  • Utilities

  • Transportation

  • Childcare

Understand the expenses that would continue.

Debt & Commitments

Mortgages, loans, education costs, and other financial commitments may remain.

  • Mortgage or rent

  • Loans

  • Credit obligations

  • Education needs

Know which financial responsibilities would remain.

Future Priorities

Families may also want to preserve important longer-term plans where possible.

  • Children’s education

  • Retirement goals

  • Family stability

  • Other long-term priorities

Consider both today’s needs and tomorrow’s priorities.

The amount of financial support a family may need depends on its actual responsibilities, available resources, and future priorities.

KNOW WHAT YOU ALREADY HAVE

Start With Your Existing Protection

Before identifying any protection gap, understand what financial resources may already be available if an unexpected event occurs.

1. Savings

Emergency savings and other accessible resources may help cover shorter-term financial needs.

Know how long your available savings could reasonably help.

2. Workplace Benefits

Some employers provide benefits that may offer financial support in certain circumstances.

  • Disability benefits

  • Life insurance

  • Health benefits

  • Sick leave

Understand what is provided, how much, and for how long.

3. Other Available Resources

Depending on the circumstances, government programs, existing insurance, or other financial resources may provide some support.

Know what may already be available before assuming there is a gap.

Protection planning should consider what you already have before identifying what may still be missing.

PROTECTION GAP

Compare What You May Need With What You Already Have

A protection gap may exist when the financial impact of a risk is greater than the resources available to manage it.

1. Identify the Need

Estimate the financial responsibilities that may continue if an unexpected event occurs.

Start with real financial responsibilities.

2. Identify Existing Resources

Consider savings, workplace benefits, existing coverage, and other resources that may be available.

Do not overlook protection you already have.

3. Understand the Difference

Compare potential needs with available resources to identify areas that may deserve further attention.

The difference may reveal a protection gap.

Protection planning begins with understanding the gap—not choosing a product first.

difference risks

Different Financial Risks May Need Different Solutions

Protection is not one single product or decision. Different risks can affect your finances in different ways, so the appropriate response depends on the risk being addressed.

1. Income Interruption

Income Protection

Protection may help replace part of your income when illness or injury prevents you from working, depending on the coverage and circumstances.

Focus on the financial effect of losing earned income.

2. Serious Illness

Major Health Events

A serious illness can create additional costs, time away from work, and changes to household finances.

Consider both medical-related costs and income disruption.

3. Rebuild

Family Financial Protection

Protection may help provide financial resources for surviving family members when income or support is permanently lost.

Consider ongoing obligations and future family needs.

The purpose of protection is to address a specific financial risk—not simply to own more coverage.

REVIEW & ADJUST

Your Protection Needs Change as Life Changes

Income, family responsibilities, debt, savings, employment benefits, and financial goals can change over time. Reviewing your protection helps keep it aligned with your current situation.

1
Step 01 • TRACK

Know What You Have

Keep a simple record of existing coverage, workplace benefits, savings, and other financial resources.

• Build a clear picture of your current protection.
2
Step 02 • REVIEW

Look for Changes

Review changes in income, debt, family responsibilities, employment benefits, and financial priorities.

• Check whether your current protection still fits.
3
Step 03 • ADJUST

Update Your Plan

Revisit protection needs when major financial or family circumstances change.

• Keep your protection relevant to your life.
1
Step 01 • TRACK

Know What You Have

Keep a simple record of existing coverage, workplace benefits, savings, and other financial resources.

• Build a clear picture of your current protection.
2
Step 02 • REVIEW

Look for Changes

Review changes in income, debt, family responsibilities, employment benefits, and financial priorities.

• Check whether your current protection still fits.
3
Step 03 • ADJUST

Update Your Plan

Revisit protection needs when major financial or family circumstances change.

• Keep your protection relevant to your life.

Protection planning is not something you review once. Revisit it when your responsibilities, income, or financial resources change.

Quick SELF-CHECK

How Well Do You Understand Your Protection Needs?

A few practical questions can help you identify areas that may deserve more attention.

Do you know who depends on your income or financial support?

Do you know which household expenses and debts would continue if your income stopped?

Do you understand what workplace benefits you currently have?

Do you know what existing insurance or other protection you already have?

Do you understand how long your savings could support your household if income were interrupted?

Have you reviewed your protection since your last major life or financial change?

NEXT ACTION

Ready to Turn Reflection Into Action?

Understanding your responsibilities and existing resources can help you identify where additional protection education may be useful.

Check Your Financial Wellness →

Self-paced assessment • 100% private • Free educational resource

NEXT STEPS

Continue Building Your Financial Foundation

Protection helps manage financial risks, but it works best as part of a broader financial foundation that includes cash flow, savings, debt management, and long-term planning.

Emergency Savings

Learn how accessible savings can help manage smaller unexpected expenses and short-term financial disruptions.

Debt Management

Learn how borrowing costs, repayment priorities, and debt decisions can affect your financial flexibility.

Recommended next step

Wealth Building

Learn how saving and investing can support longer-term goals while understanding risk, diversification, compounding, and available account options.

Protection helps preserve financial progress. The next step is learning how to build toward longer-term goals.