$2m Settlement Problem

[Filsilva]

http://www.moneyville.ca/article/1214204--divorcee-s-dilemma-how-to-handle-2m-settlementdivorcee-s-dilemma-how-to-handle-2m-settlement?bn=1

This is in the Moneyville Makeover section.

"Car loan and operating costs $8,664, home costs $7,764, critical illness insurance $6,312, property taxes $5,400, fee for guaranteed minimum withdrawal benefit, $5,137, groceries $2,880, personal care $2,700, travel $2,400, gifts and charity $2,400, medical insurance $1,897, income tax zero, other spending and savings $21,064. Total: $61,481"

She spends over $8000 a year on medical/critical illness insurance. In a province with free health care.

She has bought 47 purses.

I wonder how long her money would last without a plan.

I love how they say her situation is a "problem". A problem the average person would love to have.

[gooki]

She's getting screwed over on that critical illness cover.

What good is an extra $250,000 when you're critical ill and already have access to over $1,000,000 at any time?

Within 20 years she will have paid $126,000 in fees (assuming costs don't rise), and that's not even counting the the missed capital gain.

"Leesa has adjusted her spending to stay within her income. To further protect Leesa from a shock to her standard of living, Andreana suggested she buy $250,000 of critical illness insurance. She suggested long-term disability coverage, too, but Leesa did not qualify."...

...critical illness insurance $6,312