Rather than wake up to the sound of a blaring alarm, I wake up to the radio, which is far more pleasant and informative. Sometimes I lay in bed for a few minutes longer and passively listen to the clever radio hosts joke about the latest news – and this morning it was all about Taylor Swift and her 40 million dollar legs.

 

The 25-year-old pop princess’ legs were estimated at being worth 40 million while applying for an insurance policy to protect one of her biggest assets – those being her legs.

 

“It seems like a ludicrous sum, but if something was to happen to her legs, Taylor wouldn’t be able to give her signature stage performances,” a source said. “Her $200 million career would be in big trouble.”

 

A quick Google search later and look what I found:

 

• Julia Roberts’ smile is insured for 30 million
• David Beckham’s legs are insured for 70 million (soccer moves)
• Daniel Craig has a 9.5 million dollar policy on his entire body (think James Bond stunts)
• Jennifer Lopez’s derrière is insured for 300 million
• Mariah Carey’s legs are insured for 1 billon – that’s not a typo.

 

So, do you know what your biggest asset is?

 

I’ll tell you – it’s your ability to work. We all have insurance coverage to protect our homes from fire and theft – and yet, if you were to add up the value of everything you have insured, the figure would likely pale in comparison to the value of your single biggest asset – your ability to earn an income. So while the 40 million dollar legs seem a little steep, there is a bit of logic to these expensive body parts (while some may be questionable).

 

Instead of getting an insurance policy on your legs, consider the 3 main types of living benefits insurance available to you in case something should happen to impact your ability to earn a living.

 

Disability Insurance
Disability insurance replaces a portion of your income if sickness or injury keeps you at home for a sustained period of time and you are unable to work at your occupation.

 

Many employer group plans have a disability component, but they often have conditions that limit the amount of time you can be on a claim. And if you were to leave your employer, you would lose the coverage. Your personal disability insurance will protect you for many years and will not be altered if your occupation changes to a riskier one, or if your salary decreases.
Disability insurance typically replaces as much as 66% of your income. Keep in mind that when premiums are paid with your own after-tax money, the benefits are tax-free.

 

Critical Illness Insurance
Gaining popularity in Canada, critical illness insurance has already proven its worth in the UK, Australia, and the United States. It was developed by Dr. Marius Barnard, the brother of the first doctor to successfully complete a heart transplant, who recognized the financial burden entailed in the recovery from that procedure. Dr. Barnard’s philosophy is, “You need insurance not because you’re going to die, but because you’re going to live.”

 

Critical illness insurance provides a lump sum of money once an individual has been diagnosed with and survived one of a predetermined number of illnesses, including cancer, Parkinson’s, or Alzheimer’s diseases, or in such events as a heart attack, stroke, or bypass surgery.

 

The lump sum benefit may be used in any way you see fit – to seek advanced private health care at home or in other parts of the world, fund renovations to your home in accordance with your condition, enable your spouse to stop work and help care for you or maybe you just want to take a dream vacation or buy the cottage you always wanted. The possibilities are unlimited.

 

Long Term Care Insurance
Long term care insurance is the newest type of living benefit. It provides the necessary funds to pay for additional health care once you are no longer able to care for yourself. Funds are paid as a monthly income to cover the cost of either home visits from a qualified individual or a room at either a public or private care facility.

 

The costs associated with long term care can be quite excessive – anywhere from $1,600 – $9,000 per month – eating away at any retirement fund at full speed. With the policy in place individuals can receive a maximum benefit of $110,000 per year, tax-free, to cover the cost of their care. If
you are considering this coverage for yourself, you may also want to consider paying the premiums on a policy designed to cover certain older family members (i.e. our parents), whose future care may one day become our responsibility.