Coronavirus & Portfolio Insurance

Jon Glougie

March 4, 2020

Based on what we saw in the last week of February, the coronavirus had many investors in a panic, but generally just over the value of their investment portfolio. While it’s easy for us to look at the virus and it’s impacts on the financial markets, we also need to ask ourselves how an illness might impact us if we get sick. We should also consider how both our health and the health of our investment portfolios can often be intertwined. Critical Illness insurance can act like portfolio insurance. If you get sick and you need money for treatment, without a safety net, you may need to access money from your portfolio. If the markets have a week like the last week in February, and you need money from your portfolio, you may be forced to sell good investments at the wrong time. With a Critical Illness insurance safety net, you can receive a tax-free lump sum cheque from the insurance company upon diagnosis. This will ensure that you won’t have to dip into your investment portfolio (when the stock market is down) if you need money for treatment(s). Now is as good a time as any to ensure that you and your portfolio are well taken care of.