financial-planning

March Newsletter/ Having a child and making sure they’reprotected for the new life.


Children come into the world bringing dreams, magic and a new life.
They also come with a lot of new responsibilities for parents and new
adventures. You to give your child peace of mind and a good start in
life.
Protecting your baby
In the first few months of your child’s life, you’ll have lots of worries—
take some off your mind with the insurance for babies that are available.
This type of coverage is designed to provide financial assistance so you can
take care of your family in the event of an accident and your family will be
protected.
Even when parents do everything in their power to ensure the health and
safety of their little ones, unfortunately shows that accidents are one of the
leading causes of infant death.
Protecting your growing child
After 24 months, your baby is learning to walk, talk and become more and
more independent. At this point you may want to protect your growing child
in the event of not only accidents, but also certain diseases.
For example, critical illness insurance will allow you to take a temporary leave
of absence to take care of your child if they become seriously ill. Given that
the risks are low for this, this type of insurance is generally very affordable.
You can use this insurance like a savings and or insurance .
Life insurance for your child
While insurance for yourself goes without saying, the decision to insure a
child, especially an infant, is much more emotional. Here are a few
considerations to help you decide.
Compensating for loss of income
The main reason to get life insurance is to compensate for the loss of income
that would result from your death. Obviously, your child has no income.
However, in the event of their death, you would likely need some time off to
recover and grieve.
Life insurance for your child could allow you to take time off work during this
time, without worrying about your financial situation, or to cover funeral
expenses at take care of your family.
Guaranteeing your child’s insurability
By taking out life insurance for your child while they’re still in good health,
you’re giving them protection that will last a lifetime! This will be enormously
beneficial to your child, especially if they have health problems later in life.
Should your child be diagnosed with a critical illness that prevents them from
taking out life insurance as an adult, they’ll be able to rely on the life
insurance you paid for when they were young.
Investing in your child’s future
As a general rule, in Canada, raising a child represents an annual expense of
$10,000, until the child turns 18.

November Newsletter/ Term vs. Permanent LifeInsurance

Term Insurance

  • Duration: Provides coverage for a specific period (e.g., 10, 20, or 30
    years). If the insured passes away during this term, the beneficiaries
    receive the death benefit.
  • Premiums: Generally lower than permanent insurance premiums,
    making it more affordable.
  • Cash Value: Does not accumulate cash value. Once the term ends,
    coverage ceases unless renewed.
  • Purpose: Ideal for temporary needs, such as covering a mortgage,
    supporting dependents, or planning for specific financial obligations.

  • Permanent Insurance

  • Duration: Provides lifelong coverage as long as premiums are paid.
  • Premiums: Generally higher than term insurance premiums, as they
    include both the death benefit and a savings component.
  • Cash Value: Accumulates cash value over time, which can be borrowed
    against or withdrawn (with potential tax implications).
  • Types: Includes whole life, universal life, and variable life insurance,
    each with different features and flexibility.
  • Purpose: Suitable for long-term financial planning, estate planning, or
    wealth transfer.

  • Summary
  • Term insurance is a more affordable option for those looking for
    coverage for a specific time frame without cash value benefits.
  • Permanent insurance is better for individuals seeking lifetime coverage
    and savings benefits, albeit at a higher cost.
    When deciding which type is right for you, consider your financial goals,
    needs, and budget. It’s often beneficial to consult a financial advisor or
    insurance professional for personalized advice.

October Newsletter/ Most common questions regarding L I F E I N S U R A N C E

L I F E I N S U R A N C E
What is the purpose of the life insurance?
Buying life insurance protects your spouse and children from the potentially devastating
financial losses that could result if something happened to you. It provides financial
security, helps to pay off debts, helps to pay living expenses, and helps to pay any
medical or final expenses.
What does the life insurance cover?
By paying a monthly premium or a lump sum to your insurer for life cover, you can
safeguard your loved ones from financial hardship if you die. The money can be put
towards funeral costs, payment of a mortgage, debts, or your family’s living expenses.
What type of life insurance provides death benefit protection?
If you want your life insurance to be able to pay out the death benefit no matter when
you die, you’ll want a permanent policy.
What voids life insurance payout?
But it’s important to be aware that there are a few instances where life insurance won’t
pay out. Top reasons life insurance won’t pay out may be because the policyholder lied
on their application, their death was the result of suicide, or they passed away during
the waiting period.
How do beneficiaries receive their money?
Bank account beneficiary rules usually allow payable-on-death beneficiaries to withdraw
the entirety of a decedent’s bank account immediately following their death, so long as
they present the bank with the proper documentation to prove that the account holder
has died and to confirm their own identity.
Who Needs Life Insurance?
Parents with minor children.
Parents with special-needs adult children.
Adults who own property together.
Seniors who want to leave money to adult children who provide their care.
Children or young adults who want to lock in low rates.
Stay-at-home spouses
Wealthy families who expect to owe estate taxes.
Families who can’t afford burial and funeral expenses.
Those with preexisting medical conditions.
Married pensioners.
Parents with thinking on theirs kids education.
Thinking to get married or having kids.
Business owners.
If you are ones of the list above and still don’t have life insurance….
call me.
Life insurance is intended to protect those that would be financially affected

September Newsletter/ Benefits of Life Insurance


People may be afraid to have life insurance for several reasons:

  1. Fear of Confronting Mortality: Discussing life insurance requires acknowledging and
    planning for one’s death, which can be uncomfortable and anxiety-inducing.
  2. Cost Concerns: Some people believe that life insurance is too expensive and fear they
    cannot afford the premiums.
  3. Complexity and Confusion: The various types of policies and options can be
    overwhelming, leading to confusion and fear of making a wrong decision.
  4. Distrust of Insurance Companies: Some individuals may distrust insurance companies,
    fearing they might not pay out claims or that there are hidden clauses that could render a
    policy void.
  5. Procrastination: Many people simply procrastinate, thinking they can get it later, and
    fear the commitment involved in purchasing a policy.
  6. Health Issues: Individuals with pre-existing health conditions might fear they will be
    denied coverage or charged exorbitant rates.
    Understanding these fears and addressing them through education and transparent
    communication can help alleviate concerns about life insurance. Here are some
    benefits about having life insurance.
    Including:
  7. Financial Security for Dependents: Provides a safety net for your family, ensuring they
    can maintain their standard of living.
  8. Debt Coverage: Helps cover outstanding debts, such as a mortgage, so your family
    isn’t burdened with them.
  9. Income Replacement: Replaces lost income, allowing your dependents to cover daily
    expenses.
  10. Estate Planning: Can be used to cover estate taxes and ensure your heirs receive their
    inheritance without financial strain.
  11. Business Continuity: For business owners, it can fund a buy-sell agreement or help
    cover business debts.
  12. Cash Value Accumulation: Certain types of life insurance policies, like whole life, build
    cash value that can be borrowed against or withdrawn.
  13. Tax Benefits: Death benefits are usually tax-free to beneficiaries, and cash value
    growth in permanent life insurance policies is tax-deferred.
  14. Peace of Mind: Provides peace of mind knowing your loved ones will be taken care of
    financially in the event of your passing.

March Newsletter/ Planning for end-of-life expenses amid soaring costs

In the realm of financial planning, there’s a critical aspect that often doesn’t receive
the attention it warrants until it’s too late: the cost of dying. The price tag attached
to end-of-life care and funeral expenses is climbing, propelled by inflation and
escalating health care costs.


Funeral costs


The average funeral costs between $8,000 and $15,000, encompassing expenses
from caskets and embalming to transportation, plots, flowers, services,
headstones, and funeral home fees.


Medical care costs


Although funeral expenses are steep, the cost of medical care in the final stages of
life is even more daunting. Medicare provides some relief, but hospital, palliative
care and hospice care costs continue to surge. Hospital stays can exceed $10,000
per day before insurance.


Planning for estate and legal considerations


Beyond medical and funeral costs, there are estate and legal fees to consider. The
process of settling an estate and distributing inheritances involves a complex web
of legalities, adding another layer of expense that can easily propel total end-of-life
costs beyond $40,000.
As the costs associated with end-of-life care continue to rise, agents and advisors
are tasked with a crucial responsibility: to help their clients plan comprehensively,
considering not only the joys of retirement but also the inevitable costs of dying. By
exploring all available options, from savings and investments to insurance products
and life insurance settlements, financial professionals can guide their clients toward
peace of mind for themselves and their loved ones