Moms with children under 18

Moms

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not just moms but working momswith children under 18

This production is about working moms, either married, divorced or separated. In this presentation, the moms we are targeting are those with children under 18. The question is, how many moms do we have in Canada that meet this definition?2

In Canada, there are

3.9 million mothers with children under the age of 18** General social survey family, 2006 (cycle 20). Statscan

There we have itIn Canada there are 3.9 million mothers with children under the age of 18.3

Action plan when the child is critically ill

Imagine for a second that a child is diagnosed with cancer. In itself, this is a catastrophe and moms immediate reaction would compel her to attend to her childs needs 24 hour a day, 7 days a week and for as long as that child needs her support.But then comes the additional financial factor to an already stressful situation: she needs a leave of absence from her employer, which implies a loss of income for perhaps a few months over and above those unforeseen expenses still to arise.Now what!

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How will she replace her income?

LoanRRSPFriend

?

The obvious question is how will the family replace her income? Lets examine what would normally come to mind immediately:1. They could borrow a sufficient amount to cover, lets say, a 6 month leave of absence, OR2. Fund the lost income by withdrawing money from their savings, possibly including RRSPs, OR3. Try to find a friend or friends that would help the family with this financial problem.This last solution is probably the least appealing and the most difficult to consider.

Withdrawing money from savings or RRSPs could impact the familys future retirement income and if this were the only solution, I suppose it could be contemplated.

If their credit is OK, borrowing money should certainly be taken into account. However lets examine the cost associated with the loan solution.5

Thinking of borrowing?

$25,000 loan @ 5%

$2,140/month1 year

$163/month20 years

Borrowing $25,000 at 5% represents monthly repayments of $2,140 per month if the loan was to be repaid over one year. The same loan amount repaid over 20 years would force payments of $163 per month. Given those figures, Im sure you would agree that this solution should be discarded if at all possible.6

The solution

Leave of Absence insurance protection

Now, what if we could find an insurance solution to this problem? What if we could tailor a package that would in fact be equivalent (CLICK) to a leave of absence insurance policy?That policy exists today and is called Juvenile Critical Illness Insurance. And there are specific ways in which we can package this product within another coverage and turn it into leave of absence insurance., but

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Is it really necessary to have C.I. on a child?

Is it feasible or even desirable to own critical illness insurance on a childs life? Given this news story, I would think that this insurance is absolutely necessary for those families with children under 18. Lets examine a typical insurance package8

The proposed coverage

T20

C.I. T20$200,000 to replace income $25,000 to cover expenses if sick

C.I. T100$25,000 for moms leave of absenceMom age 38; child, 5 years old

The package could include the following:A Life insurance 20 year term coverage on moms life. For this case study it is an ideal product to create a capital until the child reaches adulthood. This capital would replace moms income should she die prematurely while the children are still at home.The critical illness rider on her own life is to protect her financially should she suffer from a critical illness which would affect her ability to take care of her children coupled with the added expenses resulting from this critical illness. This would prevent her savings going on empty.Finally, the critical illness protection on the childs life in this example, will make it possible for mom to take a leave of absence should her child suffer a critical illness.In this example, we will look at costs based on a 38 year old mom and her 5 year old daughter.9

The proposed coverage

T20

C.I. T20$200,000 to replace income $25,000 to cover expenses if sick

C.I. T100$25,000 for moms leave of absenceMom age 38; child, 5 years old

Less than $50 per month

The package could include the following:A Life insurance 20 year term coverage on moms life. For this case study it is an ideal product to create a capital until the child reaches adulthood. This capital would replace moms income should she die prematurely while the children are still at home.The critical illness rider on her own life is to protect her financially should she suffer from a critical illness which would affect her ability to take care of her children coupled with the added expenses resulting from this critical illness. This would prevent her savings going on empty.Finally, the critical illness protection on the childs life in this example, will make it possible for mom to take a leave of absence should her child suffer a critical illness.In this example, we will look at costs based on a 38 year old mom and her 5 year old daughter.10

Working momswith children under 18

This production is about working moms, either married, divorced or separated. In this presentation, the moms we are targeting are those with children under 18. The question is, how many moms do we have in Canada that meet this definition?11

At The ShoreKevin MacLeodRoyalty Free201014640.0eng - iTunSMPB188100.17212633.44188100.17