Risk management for you and your portfolio: going beyond diversification

Most investors understand the key rule of not putting all your eggs in one basket. So, they typically protect their portfolio by diversifying with a wide range of investment products that can help them weather potential market storms.

In a similar way, you need to protect you and your family from any unexpected events that could derail your financial plan and negatively impact your lifestyle. Rather than take on these risks yourself, you could pass them on to an insurance company.

However, this is one aspect of risk protection that Canadians aren’t as good at. Three out of 10 Canadians have no life insurance,¹ while only 2.4 million have critical illness insurance.² Of course, we often like to think that serious events won’t happen to us. However, almost half of all mortgage foreclosures in Canada are caused by critical illness or disability.³
 

Given that there are several potential risks that you need to protect yourself against, it makes sense to have an insurance portfolio that’s focused on your particular circumstances, given that not all insurance products are suitable for everybody. Let’s break down the different types of risks that you might need to consider and the insurance policies that are available to protect you, your portfolio and your loved ones. 

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