Life Insurance and Living Benefits

There are some things that you should just try to avoid at all costs. For one: Brussels sprouts, those little cabbage looking things that your mother told you to eat, and supposedly are good for you. Fiber and protein are good, however it’s that funny texture and odd aroma that gets me. Too bad some retirement investments didn’t come with an odd smell that would ward off unsuspecting baby boomers. I’m referring in particular to one aspect of a Mutual Fund which most investors are simply unaware… Your Estate . The question that you should ask is “If I predecease my spouse, what path will the proceeds in my RRSP “Mutual Fund” take?” The answer may surprise you, as it does most people. Let’s say you have a mutual fund and you use it as your retirement savings. You have named a beneficiary- say your husband or your wife. Let’s also say you are 60 years old, even though you look younger. At your death, the mutual fund becomes part of your estate regardless to whom you stated as your b

As financial advisors, if we had a magic wand we could wave it over a family to provide the answer of  how much life insurance a family should own, when to buy it, and what type of coverage is the best; in reality, we don’t have such a wand, but we do have the answers to many questions. Life insurance is not as subjective as we think. We do know the answers to many of the questions already. We don’t know when we are going to die, but we do know eventually we will all pass away. In fact, this is what makes us different (in part) from the rest of the animal kingdom… humans know we are all going to die someday, monkeys don’t. Given this simple advantage, we have the opportunity to plan for the future.  Most people don’t know how they are going to die. Yet we do have the choice of how we are going to live. Good advice might be to live life every day and keep an eye out for the future… and plan not only for your future, but also for the future of those you love. Insuring your life

Summer is not officially over until September 21 st . However, “back to school” week is a sure sign of the fall! The fall is a busy time in our financial planning office, as people seem to use this time of year to tidy up many small items concerning everything financial. It might also be a good time of year for you to do the same, especially if you aren’t in this “fall time” habit. Many people have a list of items to refer to when it comes time for financial clean up. Here is a typical list: ·          Update beneficiaries on your insurance policies’ if required. ·          Increase your disability coverage if your income has increased. ·          Review your RRSP investments against your current Risk Tolerance questionnaire. ·          Top up your Tax Free Savings Account ·          Increase your RRSP deposits by 10% ·          Question your bank to see if you can save money by renewing your mortgage early. ·          Compare your bank mortgage insurance

My grandfather owned a bakery and he referred to a box of 15 donuts as a baker’s dozen.  When it comes to life insurance in Canada, I guess the same holds true. When looking at the premium for $225,000 for a female non- smoker at age 30 with 10-year term insurance, the premium was $18.83 per month with a common carrier. However, for the same person, we increased the benefit to $250,000 and the premium decreased to $12.60 per month.   That’s a 32% decrease in premium with an increase of 11% in coverage.  For a male of the same age, for $225,000 of 10-year term insurance, the monthly premium was $23.69 per month and the $250,000 premium was $16.65 per month. My grandfather would have been proud. The economies of scale are working on your side here! To learn other ways to save on your insurance, contact corry@maritimeweatlh.com 902-444-7000 Please like, share and comment on my newest post!