Skip to content
News & commentary

Risk Management – Portfolio Insurance

Home News & Commentary Risk Management – Portfolio Insurance
Jon Glougie

Jon Glougie

All financial plans are a great way to plan for your future, but unless you are including a risk management component to your plan, you are leaving yourself exposed to potential risks that may render your plan useless.

Let’s be honest, how often does life go as planned?

Whether you are still working and saving for retirement or you already retired and withdrawing income from your retirement savings, one of the biggest risks to your financial plan is a life-threatening illness. Your retirement savings are intended to be used for exactly that… retirement!

If you get sick, will you need to use your retirement savings to get better? And if you do, what will the rest of your retirement look like? Will you have to reduce your desired retirement lifestyle?

Adding a Critical Illness insurance policy to your financial plan can help protect the very financial plan that it is being added to. In fact, you should consider Critical Illness insurance as Portfolio Insurance.

As an example, think about car insurance. You can spend $50,000 on a new car and then spend $2,000 (or 4% of the value of the asset) to insure it. It should be no different with a Critical Illness policy. If you have a portfolio worth $100,000, why not spend 2% of the portfolio value on an insurance policy that can protect the rest of your portfolio. Planning for the unforeseen risks will allow you to make your financial plan complete and protected from all of life’s uncertainties.


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

April 2025 Portfolio Management Team Update

April 2025 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth April 16, 2025 SUMMARY Market Review: Most global indices declined in March to cap a challenging quarter, before President Trump’s reciprocal tariffs announced on April 2 triggered the biggest slide in U.S. markets since the 2020 pandemic. The […]

Read more

March 2025 Portfolio Management Team Update

March 2025 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth March 25, 2025 SUMMARY Market Review: North American indices fell in February on mounting concerns about the impact of a global trade war. The selloff intensified into March, triggering a 10% correction in the S&P500 that wiped out […]

Read more

February 2025 Portfolio Management Team Update

February 2025 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth February 25, 2025 SUMMARY Market Review: Global equities began the year positively with solid returns in January, but volatility in recent weeks underscores the risks that lie ahead. The TSX rose 3.3% last month, trading at a record […]

Read more