Time to Review Your Insurance Portfolio?

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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?
o Term Life Insurance is generally used to pay off debts, a child’s education and most importantly to replace the income your family depends on from you.
o Permanent Life Insurance in its simplest form provides a level cost of coverage for life. It is most commonly used for final expenses and leaving a legacy to your family or a charity close to your heart. Consider that a $15,000 funeral expense today will likely be in the range of $50,000 40 years from now. Other final expenses can include taxes on real estate, investments or a business you own.

• If you have term insurance you should know that there are certain options available to you, but they often have deadlines. These options include lengthening the term or converting to permanent insurance with no underwriting. If you do nothing before the term is up you will see a substantial increase in the cost of your policy.

• If you have permanent insurance in place, there might be options to keep it in place without paying anymore premiums. If you are maximizing RRSP’s and TFSA’s you may have an option to increase your premium in order access tax free growth on non-registered investments.

• Changes to your income, your mortgage, your family dynamics, retirement and many other life changes will all have an impact on your life insurance needs

• Disability insurance is put in place to replace your income if you cannot go to work due to injury or illness. If your income increases, your expenses generally keep pace. This means you need to protect that lifestyle with additional coverage. Many people think their group plan has them covered, however, most plans will only offer a limited percentage of your income. It is up to you to be sure you understand what you have in place and a professional can help.

• Critical Illness Insurance has similar conversion options to life insurance. You may even be able to change your plan to one that will return all of your premiums if you stay healthy!

This is only a partial list of the options you may have and changes that can affect the relevance of your coverage. There is no downside to reviewing your insurance portfolio and in the best case you will just renew the peace of mind you received placing your policies in the first place.

Please contact us for additional information or to have us help you review your insurance portfolio by e-mailing joseph@curryfinancialgroup.com or calling 1-866-445-4424.

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I look forward to continue helping you and your family.

All the best,
Joe