Estate Planning and Insurance

Estate Planning and Insurance

INSURANCE



Do you want the Canada Revenue Agency to be the beneficiary of up to half of your estate? If you are like most people, you may want to learn about the Registered Asset Preservation Plan.

Choosing the type of life insurance you and your family need is an ongoing exercise. When children are young and dependent on your income, cash flow is restricted and lifestyle needs are high. The type of life insurance most people purchase at this stage of life is "term”. The premiums are low when you are young, therefore, it’s easier to purchase larger amounts to provide contingency funds in the event of premature death.

Depending on the type of policy, premiums typically increase every 5, 10 or 20 years. As you become older, premiums can be expensive and coverage usually expires at around age 75. The situation many people face after the kids have grown up and the mortgage is paid is that their need for life insurance coverage has become permanent. Those permanent needs are typically related to funding estate settlement costs, estate equalization among heirs, estate creation for a surviving spouse, and funding charitable bequests.

However, if you’ve had a significant change in your health you may not qualify for coverage at an older age. Fortunately, many term life insurance policies have been created with an eye to the future, beyond the expiry period. They typically include a provision allowing the owner to convert a temporary insurance policy into a permanent plan, without providing medical evidence.

Converting your term insurance plan to permanent insurance coverage can provide a financial cushion to protect your accumulated wealth. The first step is to review your insurance needs – especially if you anticipate a premium increase in the near future. Permanent Insurance can also offer the ability to Convert Taxable Dividends into Tax Free Divdends for corporations.

Whatever our clients issues are, our in-house Estate & Insurance Advisors are available to meet face to face with our clients.

The Insured Annuity is an insurance concept that has the potential to provide greater income with the tax-advantaged treatment of your non-registered funds, especially when compared to conventional guaranteed interest instruments.

Insurance can also be used to help Keep the Cottage in the Family.