What kind of life insurance should I buy?
That’s a question that crosses the mind of many people in all walks of life.
A young person finishes school and finds a job. His/her parents offer advice that they should be wise with their money and be sure to start a good financial plan that includes life insurance. What does that mean? Well, Mom and Dad own life insurance and they have spoken about disability insurance, but have never explained how it works. Most parents probably can’t explain how these plans can be set up and more importantly how they should be set up in specific situations.
So what happens? The parents contact their agent and ask to have insurance explained to the child. They recommend that the child call an Insurance company and get their own explanation because their agent has passed away and they haven’t spoken to anyone for years or the subject doesn’t even come up and the new adult is on his/her own.
When most young people start working with a firm they are, after a waiting period, enrolled in the group insurance plan with their new employer. This is an excellent start and probably all that is necessary while the individual is single and has no family responsibility.
When this “new young employee” decides to marry and buy a new home and start a family the financial planning should start and both spouses should sit with a life insurance advisor and learn about, and add to their financial portfolio, a reasonable amount of life insurance, perhaps additional disability insurance and nowadays a critical illness benefit. How much of each will depend on their circumstances.
If they own a home that has a mortgage, perhaps a short term renewable life insurance plan with critical illness coverage, to allow the survivor to reduce or pay off the mortgage to reduce the stress of a lost income in the event of an untimely death or critical illness. The critical illness product should be considered to provide a benefit that pays a lump-sum tax-free benefit to the survivor of a heart attack or cancer victim or victim of many other conditions. The critical illness benefit, following a thirty day survival is paid tax free and can be used to reduce or retire a mortgage or pay for medical assistance away from home instead of going on a waiting list for months when the required treatment is not available.
It is advisable to set up a plan in the beginning when income is low to provide a maximum death benefit or critical illness benefit for the lowest acceptable premium and modify the plan later to lock in a longer term rate as the funds (income) increase.
In other words, start with a Ten Year Renewable and Convertible plan in both life insurance and critical illness benefit and when there is more disposable income change all or parts of the plan to long term. Lock in a rate for life rather than be subject to guaranteed renewable rates that can become very expensive as you grow older.
It is important to speak with and continue to review and revise your insurance plans as your situation changes and that could be yearly, certainly every four or five years but no longer. Make sure you always know what the insurance plan you own, will do for you and your family as they mature.
Life insurance plans often become the forgotten investment in the grand scheme of things. It is a proven statistic more people have heart attacks and are diagnosed with cancer than homes being destroyed by fire or cars being destroyed in accidents. People pay more attention to their house and car insurance than they do to their personal life insurance products for their family. After all it will never happen to me! Right? Wrong!
Pick out a good advisor, create a good rapport, and make sure you revisit your plans on a regular basis. In general most people spend less time planning and reviewing their insurance portfolio than they do their weekly grocery list.
Please visit our site: Guaranteed lowest rates in Canada and a broker will be happy to assist you at no cost or oblibation.
http://www.assure-all.com/
Assure-All Associates
204 - 100 Craig Henry Dr.
Ottawa, ON
K2G 5w3
866 341 3220
info@assure-all.com
Wednesday, May 14, 2008
Canada Life Insurance for Women
Life Insurance for Women
Why Do So Many Women Lack Life Insurance?
Most modern Canadian households are dual-income households. These days it often takes two incomes to live comfortably. And while most men may have decent life insurance coverage, many women still lack it. If you are married, especially if you have children, would your husband be able to afford his and the children's accustomed style of living if you were to pass away? If you are single, who would assume the burden of paying for your final costs if you were to pass away? This may fall to your parents, who have hopefully planned well for their retirement but are also likely to be living on a fixed income, one, which does not take into account the possibility of you passing away before them. Many single women, especially those with children, may be on a tighter budget than dual-income couples, and as such, feel they can't afford life insurance. However, they may be surprised to know that a 25 year old healthy woman can purchase a $200,000 10-year term life insurance policy for under $12.00 a month (even lower than their male counterparts, as women are more likely to live longer, which lowers their life insurance costs). If you are a healthy 45 year old, that does not mean it is too late to buy affordable life insurance; your cost for the same policy as above would only be about $25.00 a month. If you have kids, it is especially important to make sure they will be taken care of if anything were to happen to you. Especially since life insurance is so affordable.
Also, as noted above, women tend to outlive men. Studies show that nearly six out of ten women in Canada are living on their own by the time they are 85. In addition, women generally outlive men by an average of six years. Consider the costs that will be incurred if you are living alone and your health begins to fail, as you get older. If your children need to take care of you in your senior years, many of them will not have provided for this eventuality in their budgets. If you have adequate life insurance coverage, those dependents will be reimbursed for your final expenses by your life insurance policy. That way they only have to deal with the grief of your passing, without the addition of any financial burdens incurred by it.
Women need life insurance protection for the same reasons men do, to ensure that whoever survives them will be provided with financial protection. Life insurance has always been one of the most cost-effective ways for both men and women to protect their loved ones. So why is it that women across the nation are so underinsured? It's time to change these statistics. Compare life insurance rates and policies today and see how affordable peace of mind can be.
Why Do So Many Women Lack Life Insurance?
Most modern Canadian households are dual-income households. These days it often takes two incomes to live comfortably. And while most men may have decent life insurance coverage, many women still lack it. If you are married, especially if you have children, would your husband be able to afford his and the children's accustomed style of living if you were to pass away? If you are single, who would assume the burden of paying for your final costs if you were to pass away? This may fall to your parents, who have hopefully planned well for their retirement but are also likely to be living on a fixed income, one, which does not take into account the possibility of you passing away before them. Many single women, especially those with children, may be on a tighter budget than dual-income couples, and as such, feel they can't afford life insurance. However, they may be surprised to know that a 25 year old healthy woman can purchase a $200,000 10-year term life insurance policy for under $12.00 a month (even lower than their male counterparts, as women are more likely to live longer, which lowers their life insurance costs). If you are a healthy 45 year old, that does not mean it is too late to buy affordable life insurance; your cost for the same policy as above would only be about $25.00 a month. If you have kids, it is especially important to make sure they will be taken care of if anything were to happen to you. Especially since life insurance is so affordable.
Also, as noted above, women tend to outlive men. Studies show that nearly six out of ten women in Canada are living on their own by the time they are 85. In addition, women generally outlive men by an average of six years. Consider the costs that will be incurred if you are living alone and your health begins to fail, as you get older. If your children need to take care of you in your senior years, many of them will not have provided for this eventuality in their budgets. If you have adequate life insurance coverage, those dependents will be reimbursed for your final expenses by your life insurance policy. That way they only have to deal with the grief of your passing, without the addition of any financial burdens incurred by it.
Women need life insurance protection for the same reasons men do, to ensure that whoever survives them will be provided with financial protection. Life insurance has always been one of the most cost-effective ways for both men and women to protect their loved ones. So why is it that women across the nation are so underinsured? It's time to change these statistics. Compare life insurance rates and policies today and see how affordable peace of mind can be.
Tuesday, May 13, 2008
10 Tips for Seniors to Maximize Their Income
1. Take CPP early. If you have reached your 60th birthday, you qualify for early CPP. Taking the benefit early means a reduction of income by 0.5% per month prior to your 65th birthday. For example if you take income at age 60, you will lose 30% of the benefit you would receive at age 65 (0.5% x 60 months = 30%). Despite this reduction, you will be receiving income 5 years earlier. According to our calculations, it takes 17 years before you "catch up" by deferring income to age 65.
2. CPP splitting. If the higher income spouse is earning a higher CPP income, then consider splitting CPP with your spouse. You must both have reached age 60 and have both applied for CPP
3. Watch your income tax brackets. Since we live in a marginal tax rate system, the more money we make, the more tax we pay. Jumping into higher tax brackets could be costly especially when moving from the 26% bracket to the 40% bracket. Be aware of where your total income sits.
4. Consider income splitting opportunities. Income splitting is key to creating more tax efficiency in retirement. Consider strategies like Spousal RRSPs, distribution of investment income and CPP splitting.
5. Draw RRSP / RRIF income in a low tax environment. Sometimes deferring RRSPs is not always the best solution. If you are in a low tax bracket today and you know future income sources (OAS, CPP, and Pensions) will push you into the higher bracket, it might be more beneficial to take money out of RRSP today.
6. Consolidate RRSPs into a mutual fund RRIF. With the low interest rate environment, consider mutual funds for your RRIF. Even a conservative portfolio will have an excellent chance of out-performing GICs.
7. Watch the type of income from non-RRSPs. Dividends and capital gains provide tax advantages to investors over interest income. Switching to investments that produce these tax benefits will help to create greater tax efficiency.
8. Allocate interest income to lower income spouse. Since interest income is 100% taxable, it is better to have the lower income earner take interest income in a lower tax bracket. Before you make any changes in your taxes, be sure to talk to an accountant or tax professional.
9. Consider income mutual funds for non-RRSPs. Income Mutual funds are an excellent tool to create income from non-RRSP investments. They are providing excellent yields and have extremely tax efficient distributions.
10. Draw income from life insurance. For those of you with significant cash values in your life insurance (life insurance for seniors), consider drawing income "tax-free". There are arrangements that can be made with banks to get money out of the policy without cashing out. Canada life insurance is a great opportunity to create income.
The best advice we can give to anyone trying to maximize income in retirement is to plan ahead. Proper income and tax planning requires proper evaluation of your total financial situation.
We take time out of our lives to plan everyday events like vacations, big purchases, and even the upcoming weekend but we often neglect planning our financial future. Our clients have access to one of the best retirement planning programs in Canada without cost. Consider our Portfolio Analyst service to ensure your finances are structured efficiently.
2. CPP splitting. If the higher income spouse is earning a higher CPP income, then consider splitting CPP with your spouse. You must both have reached age 60 and have both applied for CPP
3. Watch your income tax brackets. Since we live in a marginal tax rate system, the more money we make, the more tax we pay. Jumping into higher tax brackets could be costly especially when moving from the 26% bracket to the 40% bracket. Be aware of where your total income sits.
4. Consider income splitting opportunities. Income splitting is key to creating more tax efficiency in retirement. Consider strategies like Spousal RRSPs, distribution of investment income and CPP splitting.
5. Draw RRSP / RRIF income in a low tax environment. Sometimes deferring RRSPs is not always the best solution. If you are in a low tax bracket today and you know future income sources (OAS, CPP, and Pensions) will push you into the higher bracket, it might be more beneficial to take money out of RRSP today.
6. Consolidate RRSPs into a mutual fund RRIF. With the low interest rate environment, consider mutual funds for your RRIF. Even a conservative portfolio will have an excellent chance of out-performing GICs.
7. Watch the type of income from non-RRSPs. Dividends and capital gains provide tax advantages to investors over interest income. Switching to investments that produce these tax benefits will help to create greater tax efficiency.
8. Allocate interest income to lower income spouse. Since interest income is 100% taxable, it is better to have the lower income earner take interest income in a lower tax bracket. Before you make any changes in your taxes, be sure to talk to an accountant or tax professional.
9. Consider income mutual funds for non-RRSPs. Income Mutual funds are an excellent tool to create income from non-RRSP investments. They are providing excellent yields and have extremely tax efficient distributions.
10. Draw income from life insurance. For those of you with significant cash values in your life insurance (life insurance for seniors), consider drawing income "tax-free". There are arrangements that can be made with banks to get money out of the policy without cashing out. Canada life insurance is a great opportunity to create income.
The best advice we can give to anyone trying to maximize income in retirement is to plan ahead. Proper income and tax planning requires proper evaluation of your total financial situation.
We take time out of our lives to plan everyday events like vacations, big purchases, and even the upcoming weekend but we often neglect planning our financial future. Our clients have access to one of the best retirement planning programs in Canada without cost. Consider our Portfolio Analyst service to ensure your finances are structured efficiently.
Monday, April 21, 2008
Canada Term Insurance
Canada Term Insurance
For Canada Term Insurance of any type you will find the best priced Canadian Term Insurance at http://www.assure-all.com/
Canada Term Insurance can vary dramatically in price and coverage based largely on the company providing the insurance and the level of expertise of the Canadian Insurance Broker recommending the insurance. Assure-All Associates holds the prestigious title of the highest average years of experience per broker of any Canadian Insurance Brokerage! What this means is you will benefit from unparalleled experience and therefore secure the best coverage and price for your situation.
Also due to their volume and the vast number of insurance companies they deal with and their instant Canadian Insurance quote system, they are a perfect mix of convenience and value.
Visit them now for an instant Canadian Insurance quote, JUST CLICK HERE
For Canada Term Insurance of any type you will find the best priced Canadian Term Insurance at http://www.assure-all.com/
Canada Term Insurance can vary dramatically in price and coverage based largely on the company providing the insurance and the level of expertise of the Canadian Insurance Broker recommending the insurance. Assure-All Associates holds the prestigious title of the highest average years of experience per broker of any Canadian Insurance Brokerage! What this means is you will benefit from unparalleled experience and therefore secure the best coverage and price for your situation.
Also due to their volume and the vast number of insurance companies they deal with and their instant Canadian Insurance quote system, they are a perfect mix of convenience and value.
Visit them now for an instant Canadian Insurance quote, JUST CLICK HERE
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