Personal Life Insurance Planning

/in , /by

Personal Life Insurance Planning

When thinking about life insurance, one of the most important steps is figuring out how much coverage you need. Everyone’s situation is unique, but a helpful starting point is understanding your coverage options and thinking about the areas of your life that need protection.

Understanding the Different Types of Life Insurance

There are four main types of life insurance: Term, Term to 100, Universal Life, and Whole Life. Here’s how they compare:

Term Life Insurance

Term life insurance provides coverage for a specific number of years—typically 10, 20, or 30 years. It offers fixed premiums for the length of the term, and if renewed, premiums will increase based on your age. This type of insurance provides a fixed death benefit during the coverage period and does not build any cash value.

Ideal For: Families with children, people with mortgages or temporary debts

Death Benefit – Common Uses: Income replacement, mortgage protection, child education

Term to 100

Term to 100 offers lifetime coverage with level premiums that are payable until age 100. It is a cost-effective way to get permanent insurance, as it does not accumulate cash value. The policy provides a death benefit as long as premiums are paid.

Ideal For: Those wanting lifetime coverage without investment features

Death Benefit – Common Uses: Final expenses, estate taxes, leaving a small legacy

Universal Life Insurance

Universal life insurance is a flexible form of permanent insurance that includes both a death benefit and a tax-advantaged investment component. You can adjust your premium payments and death benefit within certain limits. The policy’s cash value depends on how much you contribute and the performance of the chosen investments. Funds can be used for investment growth, savings, personal use, and retirement planning.

Ideal For: People who want long-term coverage with savings but require flexibility

Death Benefit Uses: Advanced estate planning, long-term wealth transfer

Cash Value Uses: Emergency funding, retirement planning, education funding, large purchases

Whole Life Insurance

Whole life insurance provides permanent coverage with level premiums and a death benefit. It also builds cash value over time, which you can borrow against, withdraw from, or use to help pay premiums. The cash value may be accessed for emergencies, supplementing retirement income, large purchases, or other long-term needs.

Ideal For: People who want long-term coverage with savings

Death Benefit Uses: Estate planning, legacy, long-term protection

Cash Value Uses: Emergency funding, retirement planning, education funding, large purchases

brandableContent

The need for life insurance

Once you understand your options, the next step is identifying the purpose of the insurance in your life. Most needs fall into three main categories:

Dependents

Whether it’s young children, a spouse, or even elderly parents, many families have one or more people who depend on their income. In these cases, life insurance plays an important role in maintaining the household’s financial stability. It can help pay for groceries, monthly bills, childcare, tuition, or even a car replacement down the road. Think of it as a financial bridge that helps your family maintain their standard of living while they adjust to life without your income.

Debts

Do you have a mortgage? A home equity line of credit? Maybe a personal loan or credit cards with balances that carry over month to month? If something unexpected were to happen, life insurance can ensure those debts don’t fall on your family’s shoulders. A properly structured policy can provide enough to pay off major liabilities, giving your family financial breathing room and the security of keeping their home or lifestyle intact.

Final Expenses

End-of-life costs often catch families off guard. Between funeral expenses, legal and accounting fees, final tax returns, and probate costs, the total can easily reach into the tens of thousands. A life insurance policy can provide immediate funds to help cover these costs without dipping into savings or relying on credit. For many retirees or aging parents, this is one of the biggest reasons to have a policy—even a small one.

Bringing It All Together

Choosing the right life insurance depends on your personal and family goals. Whether you’re protecting your home, your loved ones’ lifestyle, or planning for future expenses, there’s a policy that fits your needs.

If you’re not sure where to start, a good first step is reviewing your current debts, thinking through future costs, and considering who depends on you.

We’re here to help you choose the right coverage—get in touch.

Disclaimer

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Always consult a qualified professional regarding your specific situation. We are not responsible for any actions taken based on this content.

The Five Steps to Insurance Planning

/in , , /by

The Five Steps to Insurance Planning

One of the first “grown-up” things you do is to get insurance. Maybe it’s renters’ insurance when you’re first starting out. After that, you move on to life insurance, home insurance, and car insurance.

Whatever your insurance needs are, meeting with a licensed insurance agent can help ensure you have all the coverage you need.

Find an insurance agent

The first thing you need to do is to find an insurance agent. Ask trusted friends or family members if they can recommend one. Look for reviews online and make sure that the person is licensed – this is required in all provinces.

Meet with your insurance agent

Your insurance agent may ask you to bring some information to the meeting – such as your current salary or the estimated worth of your house. The point of your first meeting is to determine what kind of insurance you need.

Review your insurance options

One of an insurance agent’s primary duties is to help you make an informed decision about your insurance coverage. Your insurance agent should explain the following:

  • What a policy does and doesn’t cover
  • How much a policy costs and what your deductible is
  • How to file a claim if needed

Your insurance agent will talk to you about different scenarios where you could need insurance to help determine the best coverage for you.

Purchase insurance

Once you’ve settled on the amount of coverage you need, your insurance agent will then check to see if you are eligible for any discounts. They will then let you know how much your policies will cost and enroll you in them.

File a claim

If you get into a situation where you need to file a claim, your insurance agent can help you file a claim and update you on its progress.

It’s essential to be adequately insured – so contact an insurance agent or us today!

Retirement Planning

/in , , , , , , /by

brandableContent

Most of us understand the benefits of sensible retirement planning. Still, it doesn’t feel relatively straightforward when it comes to creating your retirement strategy and putting it into effect. The reality is that, while there are lots of variables to consider, it isn’t as challenging to create an effective plan for retirement as you may think.

Firstly, let’s consider the merits of a retirement plan. Firstly, the plan will aid you in setting clear goals for your retirement, such as the age that you want to finish work and what you want your retirement to look like in terms of lifestyle. Secondly, it will help you establish how much you need to save to have a retirement that meets your objectives. Thirdly, a plan will allow you to choose your investment options wisely.

How you know how much you need to save is a common question. This depends on three factors:

  • Your age. It makes sense that starting to save for retirement when you are younger means that you need to save less money than starting later in life.

  • Benefits available to you. There is a range of federal government benefits that you might be eligible for, such as the Canada Pension Plan or Old Age Security.

  • Your plans for your retirement will inevitably affect how much you need to save to fund it.

If you haven’t started saving for your retirement yet or have less in your retirement savings plan than you would like, take a look at our top tips to accelerate your savings.

  • Make the most of RRSPs and TFSAs to minimize your tax bill and make your money grow faster.

  • Take advantage of any pensions or savings plans that your workplace offers, as your employer’s contributions can add extra value to your fund.

  • Look at your spending habits to identify opportunities to cut back outgoings and save more.

  • Think about putting spare money into your retirement fund.

Taking steps to create an effective retirement plan is a decision that will pay off as you approach later life, allowing you to have the savings for the retirement that you deserve.

Talk to us; we can help.

Group Insurance vs Individual Life Insurance

/in , , /by

Group Insurance vs Individual Life Insurance

“I already have life insurance from work, so why do I need to get it personally?” or “Work has got me covered, I don’t need it.”

While it’s great to have group coverage from your employer or association, in most cases, people don’t understand that there are important differences when it comes to group life insurance vs. self owned life insurance.

Before counting on insurance from your group benefits plan, please take the time to understand the difference between group owned life insurance and personally owned life insurance. The key differences are ownership, premium, coverage, beneficiary and portability.

Ownership:

  • Self: You own and control the policy.

  • Group: The group owns and controls the policy.

Premium:

  • Self: Your premiums are guaranteed at policy issue and discounts are available based on your health.

  • Group: Premiums are not guaranteed and there are no discounts available based on your health. The rates provided are blended depending on your group.

Coverage:

  • Self: You choose based on your needs.

  • Group: In a group plan, the coverage is typically a multiple of your salary. If your coverage is through an association, then it’s usually a flat basic amount.

Beneficiary:

  • Self: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

  • Group: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

Portability:

  • Self: Your policy stays with you.

  • Group: Your policy is tied to your group and if you leave your employer or your association, you may need to reapply for insurance.

Talk to us, we can help you figure out what’s best for your situation.

Contact US

Why Insurance Is So Important If You’re A Single Parent

/in , , , /by

Why Insurance Is So Important If You’re A Single Parent

Your kids mean everything to you – and you want to make sure they’re protected no matter what. As a single parent, you must have the right health and life insurance options in place to make that happen. We recommend you consider all of the following types of insurance:

  • Disability insurance

  • Critical illness insurance

  • Accident insurance

  • Life insurance

Disability insurance

Disability insurance can provide you with an income if you become disabled and cannot work – whether it’s for a short period of time or a long one.

Most workplaces offer disability coverage, but it’s tied to that particular job, so you’ll lose coverage if you leave that job. As well, the coverage from your employer’s plan may not be sufficient to cover your needs if you become disabled.

It’s particularly important for you to look into disability insurance if you work as a contractor or have a job with no benefits.

Critical illness insurance

Critical illness insurance can help you pay for the costs associated with various serious medical issues (such as a heart attack, cancer, or a stroke) that aren’t covered by any other health plans or disability insurance. As a single parent, you may find the payout from a critical illness insurance policy especially helpful for paying for extra childcare or lost income if you cannot work.

Accident insurance

Life is getting busier than ever – and there are more and more of us on the roads. Unfortunately, more people on the roads mean more accidents. If you buy accident insurance for yourself or your children, the payout from the policy can bring in some extra income at a critical time of need if any of you are in an accident. You can use an accident insurance payout to help pay for anything from lost income to private home care.

Life insurance

Life insurance is critical as a single parent as your children are dependent on your income. Generally, we suggest that you get a policy that is worth at least 10 times your annual income, but you may need more if you have a lot of debt or you need the money to last a long time.

Your children should be the beneficiaries of your policy and you can name a trustee (such as a grandparent or other relative) to look after the money on your children’s behalf until they reach a specified age.

We can help!

If you have questions about what kind of insurance is best for you, we’re happy to answer them! We’ll walk you through all your options and put together an insurance package that’s just right for you. Call us today!

Permanent versus Term Life Insurance – What are the Differences?

/in , /by

You know you need life insurance – but you’re not sure which kind is best for you. We can help you with that decision.

There are two main kinds of life insurance:

  • Permanent, which lasts for your entire life.

  • Term, which is only good for a set amount of time.

No matter which type of life insurance you buy – permanent or term – you can rest easy knowing you’ve provided financial protection for your family.

Permanent life insurance

Permanent life insurance is good for your entire life unless you choose to cancel it. It’s an excellent choice to give you peace of mind that you’ll always be covered, even if you develop major health issues later in life.

There are also benefits to having permanent life insurance beyond guaranteed lifelong coverage:

  • You can use the policy to build up a cash value – making it a good choice for low-risk investing.

  • You may be able to use your permanent life insurance policy as collateral for a loan, making it a good choice for business owners.

The main drawback to permanent life insurance policies is that the premiums are often more expensive than term life insurance premiums. If, however, you’re thinking long-term and can afford the premiums, permanent life insurance is a great way to ensure you’re always protected and can have some guaranteed money for your estate.

Term life insurance

Term life insurance is either valid for a set amount of time (such as five or ten years) or until you reach a set age – for example, 60. You should generally be able to renew your life insurance at the end of each term, but your premiums may go up.

Term life insurance premiums are cheaper than permanent life insurance premiums – at least, you are younger and healthier (as the risk of you dying is lower). Your premiums will increase as you age or develop health issues.

You can’t use term life insurance as collateral for a loan or use the policy to build up a cash value. There are lots of benefits to term life insurance, though – it’s a good choice for you if you want low premiums, easy-to-understand insurance, and only need it for a set amount of time – such as while you have a mortgage or young children.

We can help you decide between permanent and term life insurance

If you’re not sure what kind of life insurance is best for you, we can help. We’re happy to talk to you to get more information about your insurance needs. We can then discuss what each type of insurance will cost you and which type of insurance we feel is best for you.

Give us a call today!

Life Insurance after 60- is it necessary?

/in , , /by

You may have had life insurance for as long as you can remember. You wanted to make sure that your family would be taken care of and be able to pay their bills if anything happened to you.

But now that you’re older and your children are grown – and hopefully your mortgage is paid off – you may not feel you still need life insurance. This could be a valid assumption; however, there are some circumstances under which it may still make sense for you to have life insurance. They are:

  • You still have substantial debt.

  • You have dependent children or grandchildren.

  • You want to leave a financial legacy.

You still have substantial debt

No one likes the thought of leaving their loved ones to pay their debts if they die. If, however, someone has co-signed a loan with you – for example, for a mortgage or a car – and you die, then they will be on the hook for the entire amount.

If you have life insurance and name your co-signer as the beneficiary, this will help relieve any financial burden your death could cause them.

You have dependent children or grandchildren

If you have children who are still dependent on you because they have a mental or physical disability, life insurance can be an excellent way to ensure they will still have access to funds after you die.  Lifelong care can be expensive, and a life insurance benefit will go a long way to helping fund it.

You may have grandchildren you are caring for or that you are not responsible for but want to leave money they can use towards higher
education.  A life insurance payout can be a great way to help a grandchild get a good start in life without having to go into debt.

You want to leave a financial legacy

You may not have dependent children or grandchildren but still want to leave them something when you die. Life insurance can be a great way to do this without cutting back on your spending during your lifetime.

Life insurance can also help make sure that you have something to leave everyone in your will. If you have a family cottage, it can
be complicated to leave it to more than one person or family. Life insurance gives you the option to leave one person or family the cottage and another person or family the cash equivalent.

We can help you!

If you’re unsure whether or not it still makes sense to have life insurance after the age of 60, we’d be happy to sit down with you and talk through your options. Give us a call or email us today!

Why Should I Review My Life Insurance?

/in , /by

Why Should I Review My Life Insurance?

It’s great that you’ve taken the critical step of buying life insurance. However, have you reviewed it recently to make sure that your policy is still suitable for you? It’s important to review your life insurance policy annually to check that it is up-to-date and see if you require any additional coverage.

There are several reasons you may need to change your life insurance policy:

Significant life events

Suppose you have experienced a significant life event in the past year, such as getting married or divorced or having a child. Then, It is important to consider changing your beneficiaries to make sure that your life insurance proceeds are distributed appropriately.

If you don’t update your beneficiaries, a previously named beneficiary could still be legally entitled to the money you want others to receive.

Changed jobs

Have you changed jobs? Or better yet, did you get a promotion? With the higher income, you may need more life insurance to account for extra income your family will be accustomed to or account for a change in your employer-based life insurance policy.

If you’ve started a new business, you’ll likely need additional life insurance to help cover debts you may have taken on to start your new business. Plus, since you’re self-employed, you won’t have any employer-based life insurance anymore.

You’ve taken on some debt

If you’ve recently taken on some debt – such as a credit consolidation loan or a home equity loan – more life insurance may be a good idea. Additional life insurance can provide your loved ones with some much-needed extra income to help pay off debt or even pay for basic living expenses if you die.

Supporting family members

If your parents have moved in with you or have moved into assisted living, they may require financial support. Additional life insurance can help pay for this increased financial load.

If you have children ready for college or university, they’ll still need financial support from you. You can help secure their financial future with a life insurance policy that will help cover tuition costs.

Bought a new home

You don’t want to leave your spouse or partner the burden of paying off a mortgage alone. Additional life insurance coverage can ensure they will have the funds they need after you pass and won’t be forced to sell at a stressful time.

A loved one has a change in health

If a loved one has recently had a change in their health or a significant medical diagnosis, then it’s essential to review your life insurance coverage. Your loved one may need expensive medical treatment or in-home support – which life insurance can help cover if you die.

If you have any questions about your life insurance coverage or want to make any changes, give us a call!

When should I buy life insurance?

/in , /by

When should I buy life insurance?

Life insurance can benefit you no matter what stage of life you’re at. It’s never too soon or too late to buy life insurance. Not only will it give you peace of mind, but it will also provide your loved ones with financial support after you die.

Types of life insurance

There are two main types of life insurance:

  1. Term life provides temporary coverage for a set amount of time (for example, 10, 15, or 20 years).

  2. Permanent coverage is life insurance that never expires.

Term life is generally cheaper as it is only good for a set amount of time. Permanent insurance will cost you more in the short run but may work out less expensive in the long run as your premiums do not tend to increase as you age.

Life insurance in your 20s

In your 20s, you may feel like you’re immortal and have lots of other things you want to spend your money on. But you also likely have responsibilities – such as student loans your parents may have co-signed for or a mortgage with your partner. If something happened to you, your loved ones would be left alone to pay for that debt. Life insurance could help fill this financial gap.

Also, another great reason to get life insurance in your 20s is that it’s very affordable! You will have a low insurance premium because you are considered low risk.

Life insurance in your 30s

By the time you’re in your 30s, you may have several financial responsibilities – including a mortgage and children. If you’ve only had term insurance up to this point, you may want to consider converting it to permanent to help give yourself lifelong protection.

Even if you have life insurance through your workplace, you may want to buy additional life insurance. Separate life insurance can help cover you if you lose your job or lock-in rates while you are relatively young and healthy.

Life insurance in your 40s, 50s, 60s and beyond

At this stage in your life, you may still have a mortgage or dependent children. You may have even bought a cottage or a vacation property. No matter your financial responsibilities, if your estate doesn’t have enough cash to cover them, it’s essential to have life insurance still.

Now is an excellent time to lock in permanent insurance. However, if you find the premiums too high or know you only need life insurance for a set amount of time, term life may still work for you.

Your next steps

Now you know about the two main types of life insurance and why it’s crucial to have it, no matter what age you are. If you’re not sure where to go from here, contact your insurance advisor or us – we can help you figure out your next steps!