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Are Your Parents’ Final Expenses Covered?

With funeral costs and final expenses such as debts and mortgage to be paid, having a clear plan in place can help assure financial stability for the survivors as they move through the grieving process.

Starting the Conversation

You can relieve some of the discomfort from the conversation by explaining that you care for them and value their independence; you just want to understand their needs. If you have siblings, they should also be involved as early as possible. The emphasis should be on promoting a positive, open discussion.

Find out what arrangements, if any, are already in place. Reassure your parents that you aren’t judging them for plans that were, or weren’t, made when asking these questions:

  • Do you have a power of attorney or will?
  • Who do you want to make the decisions if you become incapacitated?
  • Where do you keep important documents including:
    • Birth certificates
    • Medical records
    • Property records
    • Insurance documents
    • Financial documents
    • Contact info for attorneys, doctors and financial planners
    • Logins and passwords to any online and social accounts
  • When the time comes, would you prefer to be at home or in assisted living/hospice care?
  • Are there family or religious traditions you would like followed?
  • Have you prearranged your funeral?

Funeral Costs in Canada

According to Canadian Funerals, the average cost of a burial – which includes a professional services fee for the funeral provider’s time, the ceremony, the casket, transportation, a memorial package and a plot at a cemetery – can range from $5,000 on the lower end to upwards of $15,000. Cremation, on the other hand, is often a less expensive option, ranging from $600 for a simple direct cremation to $4,500 once you start adding in elements like a viewing, funeral flowers, and an obituary notice.

Of course, most parents don’t want their adult children to shoulder these costs so it’s important to have a clear understanding of the kinds of insurance and financial resources that will support you at the time of their death.

At this point, you could recommend that your parents speak to an insurance advisor to review their end-of-life plan and ensure they have appropriate life insurance coverage that will help cover some, or all, of their final expenses. If they don’t already have coverage, their insurance advisor can help determine a monthly premium that fits within their budget.

A financial advisor can also examine your parents’ resources to ensure they have a plan that supports their medical and living expenses.

Carrying on the Conversation

These don’t have to be one-time conversations; it can be an ongoing dialogue. Further down the line, it may be important to include other experts such as geriatric care managers or legal advisors. The conversation should make both you and your parents feel more knowledgeable of their wishes and secure in their end-of-life plan.

Understand the Critical Role Guaranteed Acceptance Life Insurance can Play in Covering Final Expenses:

RBC Life Insurance

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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In Canada, approximately 1.9 million people are classified as self-employed and another 2.3 million people are classified as temporary employees.

Freelancing can be an attractive option because of the flexibility and independence it may offer; however, for some the potential uncertainties of steady work and need for benefits could outweigh the mobility freelancing provides.

Whether you’re a recent graduate or a seasoned professional, there are some things to consider before plunging headfirst into freelancing.

Consider a Rainy Day Fund

No matter your age, having a rainy day fund of at least three months’ worth of income can help cover basic living expenses or unexpected medical costs.

Traditional employment — a steady, salaried position at a firm — usually provides a safety net in the form of group insurance plans, severance pay and other employee benefits. Choosing to work as a freelancer can mean not having access to company programs, so it’s important to plan ahead to protect yourself and your assets.

Putting money aside for unexpected expenses like dental appointments, medical examinations or prescription drugs, may help to provide peace of mind in-between gigs.

Protecting Yourself

In addition to a rainy day fund, health and creditor insurance plans may help you weather temporary disruptions to your work. For example:

  • Disability insurance can replace your income if accident, injury or illness (including mental illness) keeps you off work. It can also provide benefit and premium options to match your occupation and income level, and supplement the gaps left by CPP and QPP benefits.
  • Critical illness insurance can provide much needed funds if you are diagnosed with a condition like cancer, heart attack or other critical illnesses. Buying a policy when you’re younger, and potentially healthier, makes it more affordable.
  • Creditor insurance can provide financial protection for your credit card, loan, or mortgage should the unexpected happen.

Finding Work as a Freelancer

Recent studies have shown that the most successful freelancers are those who leverage traditional work and use past experience to establish credibility. But many young people entering the workforce have limited work experience, making freelancing potentially their only source of income.

[quote-callout content=”Gone are the days where the work structure looks like a hierarchy; I think it’s more of a puzzle or a network where you need to bring in the right expertise at the right time.” display=”all” position=”right”]

Michael Carter, CEO and co-founder of Kahuso a platform for senior executives looking for freelance positions, predicts the rise of freelancers will occur at every level of organizations. “I think companies fundamentally have to learn how to access great talent and not to own it. Gone are the days where the work structure looks like a hierarchy; I think it’s more of a puzzle or a network where you need to bring in the right expertise at the right time.”

The pace at which business is evolving suggests freelancing and contract work may continue to play a significant role in the future economy. To stay afloat, smart freelancers can take measures, including rainy day funds and adequate insurance, to help mitigate the ups and downs in the ever-changing world of work.

Looking to Cover Your Bills if You Ever Get Sick or Injured and Can’t Work?

 

RBC Disability Insurance

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Between your work schedule and your kids’ weekend practices and games, your home maintenance ‘To Do List’ might be at the bottom of your junk drawer with all those pizza coupons you keep forgetting to use. But not making time for home maintenance could cost you.

Not taking care of the smaller stuff like cleaning gutters or checking for leaks could translate into costly damage over time. It could also mean being rejected when you need to file an insurance claim. Here are four of the most common reasons for denied claims.

1. Appliance and Fixture Seepage

Drip. Drip. Drip. It might seem innocuous, but if you hear a slow dripping sound, fix it fast! Slow leakage can cause big damage as it leads to things like rot and mold. Be sure to check all your appliances and fixtures, as well as hot water heaters, washing machines, bathtubs, showers, and pipes for leaks on a regular basis.

Should You Fix it Yourself?

Oftentimes, all you need is a good wrench and some elbow grease to put an end to a leak, but depending on your level of DIY expertise, you might need to call a plumber if the problem persists, or if there’s a broken hose or cracked pipe.

Time it Will Take

Less than one hour to check everything every couple of months – or the equivalent of one episode of Game of Thrones you would have otherwise binge watched. You can wait a little longer to see which character is killed or comes back to life.

2. Foundation Seepage

You might love your big oak tree for its broad branches, but if you planted it too close to your foundation, you could be in for a world of trouble. Oaks are among the list of trees that are notorious for disturbing foundation walls, leading to water seepage. While being careful about how you landscape will help, there are other things you should do to make sure your basement doesn’t end up as damp and moldy as a bog. Ensure that water from your gutters or from watering plants drains away from your house, seal your porous masonry, and walk around your house every season to check for visible cracks in your foundation and get them fixed.

Should You Fix It Yourself?

If you have to move or cut down trees or plants, you might be able to do it yourself for the price of a few hours of sweat and a chainsaw. Fixing your downspouts and drainage can also be accomplished with a trip to the hardware store for splash pads and some hard work redoing the grading of your flower beds respectively. But make sure to call in a professional if you have cracks in your foundation – your best efforts with a can of caulk won’t cut it.

Time It Will Take

Fifteen minutes to walk around your yard once a season and see if anything needs to be done.

3. Roofing Deterioration

Got stains on your ceiling? That’s never a good sign! Roofs are expensive, but if they’re leaking they can create a lot of other costly problems like mold and rot in your house. It’s critical to spot and stop deterioration before your house starts to look like the green block of cheddar cheese you found in the back of your fridge. Cut back trees that might be dropping debris on your roof, clean out gutters seasonally, clear off large dumps of snow in the winter, install eaves protectors, check your attic for signs of water, make sure the flashing around your chimney is properly installed and not deteriorating, and check to see for damage or deterioration in roofing shingles.

Should You Fix It Yourself?

Cleaning gutters or installing eaves protectors is one of those quintessential yard chores homeowners have to do but grumble about. If you procrastinate every year, then hire someone rather than waiting for another season. If your roof needs a repair, don’t be a hero — call in the professionals.

Time it Will Take?

About 1 hour every season to visually inspect everything. Cleaning gutters is one of those jobs that can take a whole sunny summer afternoon when you’d rather be at the beach-so do it on a weekend when it’s overcast and everyone in the household is bored and a little stir-crazy and you won’t miss anything!

4. Windows and Siding Deterioration

Fog looks beautiful when it’s rolling in over the water in the early morning, but if the insides of your double or triple paned windows are foggy or full of condensation, you’ve got a problem with the seals. Check your windows every season for rot, moisture, warping, gaps between the casing and the wall, worn seals, and paint chips. You should check your siding seasonally as well. For wood siding, clean it yearly, re-stain or paint it every five years, apply sealant every two years, and replace damaged siding quickly. For vinyl siding, clean it yearly, paint it every seven to ten years, and replace it if damaged.

Should You Fix It Yourself?

Fixing small problems with windows by removing rot or applying some epoxy or caulk can be a piece of cake, but for larger issues, you might have to replace the window. When it comes to siding damage, get a professional. Trying to remove one piece of siding could pull up others and leave your house vulnerable.

Time It Will Take

A couple of hours once a season to inspect everything and perform some minor fixes — or the time it would take you to get dressed to go to the gym, do the laundry, clean the kitchen, start reading a good book, and then realize you’ve just been procrastinating about going to the gym.

Learn more about home insurance.

Rather talk to someone? Call 1-877-749-7224 or find an advisor near you.

Sources:

https://www.doityourself.com/stry/tips-for-regular-window-maintenance

Caring for Wood Siding

https://www.vinylsiding.org/homeowners/resources/cleaning-maintenance-tips/

https://blog.gaf.com/5-maintenance-tips-to-help-prevent-roof-leaks/

Great Rates and Expert Advice on Home Insurance

Get a free online quote* for coverage to protect you, your property, and your belongings from the unexpected.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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You’ve found the home you’ve always dreamed of with the cute little breakfast nook and the impressive deck in the back yard. You’re ready to put in an offer, take out a mortgage, and start making the invite list for your first BBQ. But before you hand out hot dogs, protect yourself and your investment.

Protect Your Investment: Home Insurance

Whether your dream home is perfect as is or you’ll need to redo its 1970s era kitchen, you don’t want to have to worry about the whole laundry list of things that could happen to your new home. It’s enough to keep you up at night! Banish those dark thoughts and sleep like a baby by getting home insurance.

What it Covers: Policies vary, but usually they cover theft and vandalism and damage caused by things like fire, lightning, and storms. It also provides liability protection in case someone is injured on your property and living expenses if you can’t stay at your place because of damage.

Cost: Varies based on things like value of home and contents, location, deductible, type of insurance, and number of claims.

What it Doesn’t Cover: Things like earthquakes and hurricanes are generally excluded. Ask your insurance provider for a list of exemptions.

Protect Yourself: Mortgage/Debt Insurance

We like to think that we’re invincible, but sometimes things happen that we don’t expect and suddenly we’re out of commission and unable to make money or pay our bills.

What it Covers: It pays your mortgage in the case you pass away, become unable to work, or develop an illness.

Cost: It depends on the value of your home and your age and health.

When it Kicks In: Mortgage insurance covers the full value of your loan if you die or develop a critical or terminal illness. If you become disabled, it will cover your minimum monthly payment while you’re disabled.

Find out more about home insurance for your property and HomeProtector Mortgage Insurance.

Rather talk to someone? Call 1-877-749-7224 or find an advisor near you.

Great Rates and Expert Advice on Home Insurance

Get a free online quote* for coverage to protect you, your property, and your belongings from the unexpected.

Learn More

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Between a busy career, designing the perfect nursery, researching stroller technology and devouring every bit of information on newborns, at one time your leave might have felt far off. Now that it’s almost here, how do you prepare to make the most of your leave?

Whether this is your first, second, third (or more) leave, some basic preparation and planning can help make the most of your time at home, while ensuring a seamless transition for your employer and coworkers.

Work Life

Once you’ve notified your employer that you are about to embark on this exhilarating adventure known as parenthood, help ensure a smooth transition for your employer and everyone else impacted by your leave. Schedule one or two meetings with your in-house HR department and manager a few months out, and again a couple weeks prior to your departure.

  1. Create clear guidelines on how you want to be contacted (if at all) and what is appropriate in terms of contact while you are out of the office. Depending on your level of involvement in projects or overall responsibilities, you may prefer occasional check-ins from a co-worker or a manager. Set the parameters — and stick to them — of how teammates should contact you.
  2. Confirm with your HR manager prior to your departure what your options are for unused vacation days, sick days, personal/lieu days. Depending on your company’s maternity/paternity policy, you may be able to extend your leave; however, it is better to ensure everyone knows your planned return date up front so no one scrambles to cover your responsibilities.
  3. Invest time in a thorough “While I’m out” document that can be easily shared and is saved in a central location for everyone relevant to access. Add in key details on specific programs or clients that will be useful background for someone pinch hitting while you are on paternity or maternity leave.
  4. Wrap up as many loose ends as possible in advance of the delivery date. Prep your out of office notifications, voicemail, desk/office area for your departure and remember that babies are on their own timeline. You may find yourself making an early departure because of your baby-to-be’s unexpected arrival.

Financial Life

The emotional highs of finally having your newborn at home shouldn’t be impacted by worries about finances or the future. While you are waiting to meet the newest member of your family, invest some time thinking about your new fiscal realities.

  1. Depending on your employment status, you may be eligible for benefits both financial and health-related through your employer. Be sure to ask for a detailed list that outlines what financial benefits (salary top up, eligibility for a shared bonus pool) you can apply for and/or exercise — including dental, vision, massage — while you are on temporary leave.
  2. If you are not already participating in a program, consider life insurance. Now that you have a newborn, this protection makes even more sense and financial planners will tell you this can be the basis of a sound financial plan for your family.
  3. Consider an RESP (Registered Education Savings Plan). University and/or College may seem a long way away when you are changing diapers, but the benefit of time allows you to save for your child’s academic future with a small contribution each month.
  4. If you qualify under Canada’s federal EI maternity/paternity benefits program, note that you can, “Begin receiving benefits during the eighth week before your due date (or actual week you give birth).” Don’t delay in applying as you may risk losing benefits. Applying online takes approximately an hour and requires several details from your employer, so best to apply before you are juggling a nursing newborn in front of a laptop.

Home Life

Regardless of how long you plan to be out on leave, prepare for changes in your daily social interactions. There are dozens of ways to engage with other new parents to help celebrate — and occasionally commiserate — having a newborn.

Most neighbourhoods have mom groups welcoming new members to share experiences, advice and activities. If you are new to an area, check out the local library, drop by a preschool or literally take a walk and ask any new stroller-pushing parent about what is available in your community.

Online baby/parenting forums and websites can help keep you feeling connected to the world during early morning feedings or between naps. Welcoming, entertaining and helpful forums like Canadian Moms Community and Baby Centre can keep you connected, and often wryly laughing with other moms, dads and caregivers when your daily social network temporarily changes.

Travel Life

The idea of travelling with an infant within the first few days of their arrival may seem overwhelming, but once you get into the swing of things, making the most of your leave can include visiting relatives or starting new family traditions. Preparation (like any outing with a newborn) is key; although, in the case of travel documents you’ll need your bundle of joy to be born before you can apply.

Once your baby is home, apply as soon as you can for a copy of their birth certificate and obtain passport photos. It can take four to six weeks or longer to receive the necessary documents for a passport application (based on how quickly you can access the necessary details.) Check the Canadian government’s website on child passports to help ensure your application is quickly approved.

If you are a single parent or travelling alone with your newborn, it is often recommended to obtain a notarized consent letter confirming permission has granted by the other parent (if applicable) to take your child out of province or country.

Return to Work Life

As the saying goes, parenthood, the days can be long but the years are short. Suddenly, after months of being home with your baby, the time will come for you to head back to work. While it may be a harder transition than leaving was, there are some key ways to make things easier.

  1. Although you may have already exercised extra vacation time, talk to your employer about returning in a staggered fashion if possible. Working three days a week in the office and two days a week at home (with childcare on hand) may help everyone adjust. If this isn’t possible, you — and your baby — may find it easier to use your last weeks to replicate your leaving for a few hours each day to get some well-earned me-time (a haircut, massage, clothes shopping) while preparing you both for being apart for longer stretches.
  2. Mothers who are breastfeeding will want to ensure there is a private and secure space for pumping. Before you return, talk with your HR department about providing a designated room, or implement a different plan to maintain nursing.
  3. Returning to work can mean changes to household roles and expectations. Having conversations on how to deal with these changes prior to returning to work can better prepare you and your family. Understanding new roles and responsibilities and committing to communication can help any potential conflicts when heading back to work.

Regardless of how much time you have on your maternity/paternity leave, becoming a parent for the first time, or multiple times, can be an adventure — and like an adventure, preparation can help you to make the most of it.

Learn about how Life Insurance can protect your family.

Rather talk to someone? Call 1-800-769-2568 or find an advisor near you.

 

RBC Life Insurance

Protect Your Loved Ones With Dependable Life Insurance

Learn More

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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