YOUR PROTECTION
"Fun is like life insurance; the older you get, the more it costs."
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~Kin Hubbard
There are a number of unexpected life events that can interrupt your financial goals for the future. Reviewing your financial objectives and protection needs is an important step towards reaching those goals.
LigonLevy Wealth can help you complete an insurance needs analysis to confirm what type of insurance, including how much coverage, may be right for you.
TERM VS PERM
Depending on your individual circumstances and financial goals, term and/or permanent life insurance can play a fundamental role in your protection and wealth building plan.
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What is the difference between term and permanent life insurance?
Term
What is it for?
Permanent
Temporary protection from the financial impact of death
Lifelong protection from the financial impact of death
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Combining protection with tax-advantaged cash value growth estate planning
Who is it for, mainly?
Young families and homeowners with a mortgage
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Business owners
Adults with a long-term perspective
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People who already make full use of registered investment accounts such as RRSPs and TFSAs
What are the advantages?
It's initially inexpensive, if you're young
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You can buy lots of coverage
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It's easy to understand
Guaranteed lifetime protection continues even if your health fails
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The cost is guaranteed to never go up (with most types of permanent insurance)
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Later in life, it's less costly than term insurance
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It provides tax-advantaged cash value growth opportunities for people whose RRSPs and TFSAs are topped up
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You can cash in or borrow against its accumulated value
What are the disadvantages?
Coverage is temporary; the protection ends when the term ends (if you don't renew)
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The cost goes up if you renew when the term ends (usually after 10, 15, 20 or 30 years)
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There's no cash value to borrow against or cash in
For young people, it's more expensive than term insurance
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Key benefits aren't obvious; professional advice will help you use it effectively
When is it most cost-effective?
When you're young
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When you need only temporary protection (e.g., until your mortgage is paid off or children are no longer financially dependent)
Can you convert it to the other type of insurance?
Yes
No
Can it supplement the insurance you have at work?
Yes
Yes
A needs analysis will help us find what's right for you.
TIME TO CONVERT YOUR TERM ?
You may think permanent insurance is too expensive.
Let’s weigh the cost of waiting.
MORTGAGE INSURANCE VS LIFE INSURANCE ?
Before you say yes to mortgage insurance, consider insurance coverage designed to protect you and your loved ones – not your lender.
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Get more for your money with term insurance.
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When you’re approved for a mortgage, your lender will offer you mortgage insurance. That may seem convenient, but before you say yes, you should know that you have other options.
Protecting your mortgage with an individually-owned term insurance plan offers better guarantees and greater choice. Quite simply, term insurance provides better value, more flexibility and in most cases, a lower cost.
COMPARE YOUR COVERAGE - WORKPLACE BENEFITS
You may have insurance coverage through your company group benefits plan, however, this coverage may not be sufficient or appropriate for your specific needs.
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Let's review your insurance and available alternatives for better value and complete coverage.
DISABILITY
“It won’t happen to me.”
If you believe that you’re not likely to take time off work due to an illness or injury, you’re not alone. Most Canadians don’t think they’re at risk, and even fewer have thought about the financial implications of a potential disability.
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The risk of disability is higher than you might think. In fact, 1 in 3 Canadians will experience a period of disability lasting longer than 90 days, indicating that we are overly optimistic about our chances of avoiding disability during our working lives.
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Let's assess your risk to find the right coverage plan for you.
CRITICAL ILLNESS
What is critical illness insurance?
Critical illness insurance is a form of health insurance that provides a lump-sum payment should you become seriously ill.
What are the types of illnesses covered by critical illness insurance?
Although they differ from company to company, typical illnesses and diseases covered by critical illness insurance may include:
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cancer
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heart attack
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stroke
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blindness
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Alzheimer's
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multiple sclerosis
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organ transplants
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kidney failure
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paralysis
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Critical illness insurance can help you:
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Reduce debt and other financial concerns while you cope with your illness
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Replace any reduced or lost income for you and your spouse, who may wish to take time off work to care for you
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Bring in additional help at home for you and your family
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Consider new medical treatments and medications not covered by private or government health insurance plans
LONG-TERM CARE
What is long term care insurance?
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It's easy to take our ability to perform day-to-day activities for granted. But this can change, especially as we age. This is why it’s so important to consider your future healthcare needs as you build and review your retirement savings and income plans.
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Long term care insurance provides an income-style benefit if you become unable to care for yourself due to aging, an accident, illness or deteriorated mental abilities. The money is for you and your family to use as you wish – you do not need to submit receipts for reimbursement – giving you more control and choice while helping to protect your savings and income.
You should consider this coverage if:
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You’re concerned your retirement income might not last for your lifetime if your health deteriorates and government programs are insufficient to meet your needs
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You want the financial resources to help you choose the type and level of care that’s right for you if you have an accident or need substantial care later in life as you age
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You want to protect your wealth and legacy from being eroded by the cost of care
Long term care insurance can help you:
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Bring care into your home so that you do not need to downsize or move to a facility right away
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Lessen the burden on care-givers and support your family financially if you are going to live with them if you need care
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Manage your care and expenses if you have an unexpected severe accident, at any age, that results in your needing substantial assistance from a family member or care-giver
CORPORATE OWNED INSURANCE
A corporation may own a life insurance policy for various purposes: key person insurance, business loan protection, buy-sell funding, funding capital gains tax on a business at death, executive compensation, retirement funding, wealth creation and more. It is important to ensure the tax implications of owning a life insurance policy corporately are understood and taken into consideration.
For individuals, no estate plan is complete without a Will. Similarly, no business plan is complete without a shareholders agreement. An important component of a good shareholders agreement is the buy/sell provisions allowing for the orderly transfer of shares upon retirement, disability, death, bankruptcy or matrimonial breakdown.
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Life insurance is the most efficient means of funding a buy/sell agreement on the death of a shareholder. We want to ensure you have the appropriate coverage in place.
ANNUITIES
Increasing life spans, the trend away from defined benefit (DB) pensions and lower and more volatile investment returns make saving for and income security throughout retirement a challenge for Canadians. Annuity products offered by life insurers provide innovative solutions and an excellent way of meeting retirement needs.
There are two stages to an annuity:
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1. Accumulating annuities provide a secure investment vehicle for pension plans, RRSPs, TFSAs and non-registered funds during the savings stage.
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2. Pay-out annuities can provide guaranteed income for life, just like a DB pension. Only life insurers can guarantee income for life.
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Annuities provide a range of investment options for consumers. Variable annuity products, with benefits linked to the performance of an underlying portfolio of assets, are backed by segregated funds. Younger Canadians continue to focus on wealth accumulation and retirement planning through these market value-based products.
