The Holidays are in the distant past and a New Year has begun. Like many of us (myself included!), you may have made a list of the standard resolutions to follow through on this year (exercise more, eat healthier, etc…), but here’s one to consider that you probably often think about but rarely (if ever) act on:
Movember – Prostate Cancer Awareness Month
November 25th, 2011We’re more than halfway through November and you’ve likely noticed that the moustaches are in
full force… and all for a great cause. Prostate cancer is the most common cancer to afflict men. In
fact, the frequency of prostate cancer among men rivals that of breast cancer among women. The
numbers are scary: 1 in 7 men will develop prostate cancer in his lifetime. In 2011 alone, approximately
25,500 men will be diagnosed with prostate cancer in Canada and 4,100 will die from it (source:
Canadian Cancer Society).
So, what can we do to protect ourselves from this silent, indiscriminate killer? Well, one step you
must take is to get yourself checked out regularly, especially for men aged 40+. The next thing to do
is to protect yourself financially. Our ability to earn an income is arguably the single most valuable
financial asset that we have. Being unable to work for a year could cripple you financially. So, what to
do about this?
First, check your group plan through work. Do they offer critical illness coverage or at least long-term
disability? If so, what illnesses are covered and what percent of your income is covered while you’re off
work?
Second, speak to an independent insurance broker about a private Critical Illness insurance policy.
Introduced in Canada in the mid-90’s, these plans have gained in popularity as the prevalence of
cancer has spread. Covering over 20 illnesses, these plans pay out a lump sum after 30 days of being
diagnosed. Some plans also offer a pre-payment of 10% of the value of the plan for any immediate
surgery that’s required. Such a plan can go a long way toward giving you and your loved ones financial
peace of mind while you’re going through one of the toughest challenges in life.
So, what do these plans cover and who are some of the companies that offer Critical Illness insurance?
The leading insurance companies offering this type of plan are Canada Life, Sun Life, BMO Life, Manulife,
Equitable Life and Standard Life. The list of illnesses covered include:
Cancer
Heart Attack
Stroke
Coronary Artery Bypass
Alzheimer’s
Severe Burns
Parkinson’s
Kidney Failure
Paralysis
Deafness
Benign Brain Tumour
Aortic Surgery
Loss of Limbs
Loss of Speech
Blindness
Multiple Sclerosis
Motor Neuron Disease
Bacterial Meningitis
Coma
Heart Valve Replacement
Occupational HIV Infection
Aplastic Anaemia
Major Organ Failure
Major Organ Transplant
And here’s one final thing for you to do this November: if you haven’t already, donate to one of these
brave moustache wearers and help the cause. Last year, the Movember movement in Canada raised
$22.3 million. Let’s do better than that this year! A good place to start would be to visit the site of a
good friend of mine who’s been doing this for a number of years. He’s been a long-time supporter of
the cause and any small donation makes a big difference.
If you’d like to learn more about how to protect yourself financially from the risk of being struck down
by a critical illness, contact me today and I’d be happy to help.
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Guaranteed Income for Life?
September 28th, 2011Should You Protect Your Retirement Savings with Guaranteed Income for Life?
Given the turbulence that we’ve seen in financial markets this past month and since 2008, it’s
left many investors wondering “where’s a safe spot for my money?”
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What is Guaranteed Acceptance Life Insurance?
July 14th, 2011Guaranteed Acceptance Life Insurance is another name for Guaranteed Issue Life Insurance. Guaranteed Acceptance policies provide the insured life insurance protection without medical tests and without having to answer any health questions.
This differs from ‘No Medical’ Simplified Issue Life Insurance, in that, although there are no medical tests, the applicant must complete anywhere from three to 12 health questions.
Most Guaranteed Acceptance policies are available directly from the carrier. RBC Insurance, BMO Insurance and Manulife Financial among others offer guaranteed acceptance policies.
One big caveat with guaranteed acceptance policies is that most plans have a two-year waiting period on the death benefit, meaning that if the insured dies in a non-accidental death in the first two years, the policy is limited to a return of the premium and, in some cases, interest as well.
Simplified issue no-medical plans are often available with coverage from day one. They also have higher face amounts and lower monthly premiums. Unlike most Guaranteed Acceptance plans, simplified issue plans also offer discount rates to non-smokers, rather than a blended non-smoker and smoker rate.
Guaranteed Acceptance Policies are good options for individuals who have been declined for health reasons (i.e heart attack, stroke, cancer diagnosis, diabetes etc). It’s also a reliable product to cover off lower amounts for funeral expenses for elderly clients who are concerned with leaving the burial costs to the next generation.
Coverage amounts range from $1,000-$250,000. There are shorter term options available for those younger than 70 years of age and permanent options available for clients over 70.
For more information on Non-Medical Life Insurance in Canada, please contact me by phone at 604-805-9843 or e-mail at insurancepeaceofmind@gmail.com
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It’s never too soon, but it may be too late
May 28th, 2011I’d like to share with you a story about a tragic incident that occurred to an acquaintance of mine early this year. This gentleman (let’s call him John) runs a successful business with his brother (let’s call him Peter). Both are married, with John having two young children and Peter and his wife making plans to have a brood of their own in the near future.
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The Truth About RESP’s
April 6th, 2011Keywords: RESP, education savings, financial planning
What do you think of when you hear the acronym RESP? Do you think of it as a highly effective financial tool to save for your child’s education? Do you think of it as an integral part of a family’s financial plan in saving for the future? If you rolled your eyes, laughed out loud, snorted your coffee across your key board or had any sort of negative reaction to these questions then you are not alone.
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Buyer Beware
February 24th, 2011Are you comfortable with your lenders version of mortgage insurance? It’s buyer beware!
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Leveraged Investments
February 7th, 2011Leveraged investing is an alternative take on traditional investing. With traditional investments, you set aside money as you earn it, possibly on a monthly or annual basis. With leveraged investing, instead of making small contributions over time, you put a large sum of money to work for you today, taking advantage of compound returns on a larger base pool of money.
This is a powerful tool that can greatly accelerate the growth of your savings. Here’s a simple example of the strategy:
1) There are a number of institutions in Canada that will grant a private investor up to $100,000 for a leveraged investment. For this example, let’s say you obtain a leveraged investment of $50,000
2) This $50,000 is then invested into a series of funds as decided on by you and your advisor.
3) Each month, you set aside a portion of your income to pay interest on the leveraged investment. In this case, the monthly interest would be Prime +1%, or 4% per annum. This works out to $167/month.
4) In Canada, any interest paid for the purposes of investing is generally tax deductible. This means that at the end of the year, you’re able to get back up to 43.7% of the total interest that you paid over the course of the year, which could potentially drop your monthly borrowing costs to only $94/month.
Consider this comparison:
Option #1: Set aside $167 per month into an investment earning a 6% annual return, or 0.5% per month.
Option #2: Borrow $50,000 and pay monthly interest of $167/month. Assume that the $50,000 investment also earns a 6% annual return.
Result at the end of 1 year:
Annual Growth, Option #1 = $70.34
Annual Growth, Option #2 (After interest paid) = $1,000.00
This difference is substantial and will increase over time.
Please note that while leveraged investing will magnify any gain in your investment, it can also magnify your loss. There are real risks with leveraged investing and it’s important that you fully understand the pros and cons of the strategy before committing. We would be happy to walk you through these risks to determine if you’re the right candidate for the strategy. Please contact us for more information.
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Mortgage Insurance
February 7th, 2011Mortgage Insurance vs. Life Insurance
One of the main benefits of Life Insurance is the peace of mind it provides. An insurance policy lets us know that our loved ones, or those relying on us are provided for if the unthinkable happens. However, some families who have purchased the products offered up by the mortgage lender have found this not always to be the case.
In this post I’d like to outline some of the key points to consider when offered the standard coverage from your mortgage lender.
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Disability Insurance
January 31st, 2011The ability to earn an income may be the single most important asset for any individual. However, many do not even consider what would happen to them if they ever lost this asset. When you’re disabled due to an injury or illness, your income may stop but your daily, monthly and annual expenses likely won’t. This risk is real: 1 in 3 people in Canada will be disabled for 90 days or more at least once before they reach the age of 65*.
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