Category Archives: Life Insurance

Get Rewarded for Living Healthy!

Life insurance has never been a topic people like to discuss and it is definitely considered a grudge purchase by many. Part of the reason for the grudge purchase is that people feel their past health style choices will affect their insurance cost now and they will not be rewarded for making healthy choices in the future.

But there is good news on the Life Insurance front! Manulife is determined to change the way people look at Life Insurance with their new coverage called Manulife Vitality. This is a whole new kind of Life Insurance program designed to reward people for healthy living. It is a win/win for you, the consumer. A better price and better health!

Manulife Vitality allows you to earn points for making healthy choices and being active. All new members receive a Garmin wearable device (for free) and discounted GoodLife membership. Vitality has its own website and app to help you track your points, rewards and discounts.

Should You Put Money into Your RRSP?

Many of our clients come to us initially with the goal of putting money into RRSP’s, which they expect they will use once they get to retirement. While it often makes sense for at least some of your portfolio to be invested within an RRSP, it is not always the best option for your savings when all things are considered.

RRSP’s do have some advantages. When you deposit money into your RRSP (up to 18% of your income plus unused contribution space from previous years), you receive a deduction from income for tax purposes. Once invested within your RRSP your money will grow on a tax deferred basis until you withdraw it, at which point it is taxed as income.

As I have mentioned before in my blog posts, as the boomers retire they are going to be living longer, but not necessarily healthier lives. We will have less people contributing to the system and more taking out. At the end of the day if nothing changes, there will be a shortage of money available for the government to pay for all of the services we are used to.

“Even if the province wasn’t facing serious economic pressures, the health care system would still need to transform to address the coming demographic shift. Today, health care consumes 42 cents of every dollar spent on provincial programs. Without a change of course, health spending would eat up 70 per cent of the provincial budget within 12 years, crowding out our ability to pay for many other important priorities.”

Ontario’s Action Plan for Health Care. (Ontario 2012, p. 5)-

Based on this coming demographic shift, I often ask clients, “Do you think that tax rates will be higher or lower in the future?” Almost everyone agrees taxes will be going up. We have already seen it happen in the last year. The top marginal tax rate is now over 53%!

Time to Review Your Insurance Portfolio?

Estimated Reading Time: 120 seconds

Most of the people I meet with for the first time cannot give me any details about the insurance they have purchased in the past (or not purchased). They do not know what they are paying, if it is term insurance or permanent and the most shocking thing is they do not know if it even takes care of their needs.

Just like your will, or your retirement plan, you should take time to regularly review your insurance portfolio with a professional, to make sure it is still relevant for you, your family and your business.

Here is a list of some things you need to consider when reviewing your own insurance portfolio:

• Is your Life Insurance a permanent or term policy?

The 3 Types of People Who Buy Life Insurance

Estimated reading time: 90 seconds

Life insurance is the most effective way to make sure your family is taken care of financially.  In my experience, there are three types of people who buy life insurance:
  1. They love someone and don’t want to burden them with debts or cash flow concerns
  2. They hate the government and don’t want to pay 25-50% of their assets as estate taxes
  3. They don’t like paying lots of taxes and would prefer to grow their assets on a tax free basis, access them tax- free while alive or pass them along tax-free to their family or favourite charities.

Today’s post will focus on point #3 and how to keep more of your money.