Is it about time to get your Life Insurance reviewed?

Is it about time to get your Life Insurance reviewed?

As part of Life Insurance Awareness Month, it’s time we talk about one of the most overlooked subjects, reviewing your life insurance policy.

Your need for life insurance changes throughout your life, this is the main reason you should review your life insurance. And no, this doesn’t always mean you have to pay more. Let’s take a look at a few factors to determine if you need to review your coverage.

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Age 25-40

It’s no secret, if you are between that ages of 25 and 40, this is when life insurance is often most needed. This is the age where many couples have their first children, buy their first house, and maybe, still have some other debts that need to be paid off. So the need for life insurance is great. But it’s also when money is tight. Which is why term insurance is one of the most popular forms of life insurance for this age group.

If you have recently had a child, increased your mortgage, or taken on extra debt, you should probably consider reviewing your life insurance.

To get FREE quote and shop the entire market to see what it would cost to own Life Insurance, click here.

Age 40-55

This is when life for many Canadians begin to change. Building your wealth, while preparing for retirement is more of a focus. And life insurance is a key component of that.

There are two factors you’ll want to consider:

  1. Can life insurance be utilized to help work your overall retirement plan?
  2. How can I cost-effectively utilize life insurance so when my time comes there is enough money my family doesn’t have to be out of pocket for funeral cost.

It’s very normal for Canadians to need to change their insurance in this age group. This is why reviewing your policy is so crucial.

Age 55+

Often this is when Canadians begin to think about insurance. And no, it’s not too late. But the truth is your options are limited.

In a perfect world, you can utilize the coverage you purchased in your 40s to take care of your final costs. But what if you haven’t, is it too late?

The answer is no, many insurance companies know that with an aging population the need for life insurance is increasing. Which is why they have guaranteed products to help the older population get life insurance they can afford.

If you still own the same policy from your 40’s it’s a good idea to review your options.

For more information or to speak with one of our non-commissioned staff members click the link below.

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Term Life Insurance – Reviewing Term 30 With Ivari

As brokers, we have access to every company in Canada which gives us an advantage to some of our competitors. However, one of the number one questions our clients ask us is: “Why would you recommend one company over another?”

Simply put, we want to find you the best policy at the best price for your given situation. It is our job to know what different companies offer and be able to recommend the best one for you.

Let’s break down one option so you can see why working with a broker who knows the market is crucial to finding you the best product.

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Mortgage Life Insurance Comparison TIP #3 – Transferable vs Non-Transferable

Mortgage Life Insurance Comparison TIP #3
Transferable vs Non-Transferable

Many Canadians have a lot on their plate, they spend time looking for their dream home, dealing with matters at work, negotiating mortgage rates, and much more. This is why Mortgage Life Insurance becomes an important decision, but not one they want to spend an unnecessary amount of time on. 

When we compare Mortgage Life Insurance from your lender vs going direct to an insurance company, there is one competitive advantage the insurance company offers. That is that their plans are independent (often referred to as Transferable). Meaning you do not have to change your Life Insurance just because you found a better mortgage and decided to change it 3 years after making your original decision.

Most of the times when you purchase Life Insurance through your lender, your Life Insurance also gets tied to the lender (Non-Transferable).

That means if you switch lenders in the years to come your Life Insurance will need to be repurchased at the time of signing your new mortgage.


Here are the problems that comes with waiting until the new mortgage signing:

  1. You are now older, so your rates will be more expensive to get the same amount of coverage 
  2. Its another decision you have to make 
  3. Your health may have changed, potentially making you either uninsurable or insurable at a much hire rate. 


By taking the easy option and just taking the coverage that the lenders have to offer you at the time of purchasing your mortgage, you run the risk of putting yourself in a more risky situation for later on. 

Be smart about the coverage you take on. After all, the purpose of it is for the people you love and care about!


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Mortgage Life Insurance Comparison – TIP #2

Mortgage Life Insurance Comparison - TIP #2

When it comes to Mortgage Life Insurance there is a massive difference between what your policy looks like from your lender and what your policy looks like if you go direct to an insurance company.
 
Before we start, make sure to read our first article about decreasing your Mortgage Insurance coverage amount.
 
But let’s compare TIP #2 – where the proceeds go when you purchase coverage through the bank, your benefits are paid to the bank at the time a claim is filed. This means you no longer have a mortgage to pay for. However, when you consider purchasing coverage directly through an insurance company you not only get level coverage, but the benefits are paid directly to your loved ones.
 
Why is this so important?
 
Well, let’s assume you purchased a $500,000 mortgage and at the same time purchase $500,000 of life insurance direct from an insurance company. And you were able to pay your $500,000 mortgage to $400,000. But this is when a tragedy happened and your spouse passed away. You would receive the full $500,000 of coverage. Which means you could choose to pay off your mortgage and still have $100,000 leftover. And the best part is…
 

It’s the more affordable option when compared to your lenders’ coverage.


WATCH A SHORT VIDEO ABOUT MORTGAGE LIFE INSURANCE

 

Want to know more? Contact one of our non- commissioned advisors as they would be happy to help.

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Mortgage Insurance TIP #1 – Decreasing Coverage Amounts

Mortgage Insurance TIP #1 - Decreasing Coverage Amounts

It’s no secret that when you sign a mortgage in Canada you have to also sign off on a Mortgage Protection Plan (MPP). This often seems like a good deal to many families. You pay a little extra every month and in the event, you or your spouse passes away your mortgage is paid off. However, you will also want to ask yourself if this is a good deal. You see, many Canadians shop for the best mortgage, why not shop for better Mortgage Insurance coverage?

One TIP that many Canadians overlook is the coverage you get through MPP is a decreasing amount of coverage. Meaning every month you pay the same amount for less and less coverage. But it doesn’t have to be this way.

When you go direct to an insurance company you get a level amount of coverage. This is very important because if something ever happened to your loved one, you would be able to pay off your mortgage and have some money left over. And the best part is, it’s the more affordable option. With most of our clients saving 40% when compared to MPP.

If you want to shop the market to find the best coverage for your own situation you can click the link below and get an instant quote.

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What Parents Need To Know About Taking Control Of Their Finances After COVID-19

What Parents Need To Know About Taking Control Of Their Finances After COVID-19

We all know COVID-19 changed the world. As things begin to get back to (the new) normal parents need to know these finances tips.

 

TIP #1 – Take a look at your numbers

 
The first step to taking control of your finances after the COVID-19 pandemic is to thoroughly analyze them. For many Canadians, they have been used to a world where money came in to their accounts and they paid their bills. Not really having to manage their money.
 
We understand that for some of you, you’ve had less income during these tough times. Less income mixed with the same amount of expenses can be emotionally draining.
 
Here’s a PRO TIP, separate the emotion. Most parents will continue to struggle because the emotions they experience looking at their bank statements dictates their actions. But that doesn’t have to be affecting you. After all they are just simply numbers and we are about to show you how to get your finances back on track.
 


TIP #2 – Make a list (keep, shop, discard)

 
There are two focuses you need to have: Income & Expenses
 


INCOME

 
For Canadians who are really struggling you might need to look for new way to produce income. For some of you working extra hours might make more sense. But the idea here is you have enough income to maintain the expense that you want to keep.
 


EXPENSES

 

Look at where your money is going. And ask yourself, what do I NEED to keep. These might be things like your insurance, child’s education, groceries etc. These are the non-negotiable.

 
Next we want to look at items you need to shop. Things like you cable TV, phone bills, internet are all things you can shop around to see if you can find a better plan at a better price.
 
Some banks and credit card companies such as TD Canada Trust have realized that due to COVID-19, people will have a hard time making monthly payments, hence now offering payment deferral programs. Make sure to check with your financial institution before doing this as some companies will limit the total amount of credit you have if you choose to defer payments.
 
Last, find those things you can cut out. Is your gym billing you even though they are not open? You can put a stop payment on them right away.
 
By doing this you’ll be able to take control over your finances. And get back to the new normal.
 


TIP #3 – Seek professional advice

 
When all else fails seek professional advice. You see, it’s okay if you don’t have all the answers. However reach out to someone who can help might be the best next step. Get someone that can help you understand your bills and get control of your new finances after COVID-19 pandemic.
 

For any other questions you can feel free to reach out to our team over here at TIP Services and one of our non-commissioned advisors would be happy to help.

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Why Established Real Estate Investors Love Purchasing Life Insurance

Why Established Real Estate Investors Love Purchasing Life Insurance

How does life insurance fit into an overall strategy?

 
Well, the truth is that depends on your personal situation, there is no one size fits all. However, there is one strategy that many real estate investors seem to enjoy taking advantage of. 
 
And that’s the leverage Life Insurance strategy. Let’s break this down. 
 
First money is deposited into a Life insurance policy (specifically a whole life insurance policy). This gets you an Initial Death Benefit as well as a Cash Value. The initial death benefit helps produce the capital required at the time of death.
 
Whether it is there to cover taxes (estate preservation) or its there because your loved ones need additional capital to help replace your missing income the death benefit is there from day 1. But also, you get a cash value, think of this as a saving account. Just by depositing into your life insurance policy year over year, your cash value grows roughly at 4% (depending on how you set up your policy). But this is where things get interesting. 
 
What real estate investors have been doing is they then take their policy to a lender. And lend back 100% of what they deposited, this means, they are only out of pocket what they pay for the loan. You see, what most real estate investors know is the strength of leverage, and even small appreciation can add a lot of money when leverage is involved.
 
This means their seemingly small returns are amplified, making life insurance a worthwhile investment while they are alive. While all along they have the initial death benefit. 
 
 

What happens to the loan? 

 
Well, that depends on the investor. Most investors seem to be fine carrying debt. Meaning they do not have any intent in paying off the loan. I mean why would you? If what you pay for the loan, is less then, what you make in growth in the cash value it is a no brainer. 
 
 

Are there any further benefits?

 
First, the amount you pay out of pocket for the loan is tax-deductible. As well a portion of the policy is deductible, called Net-Cost-of-pure-insurance or NCPI for short. This gives you a slight benefit to what your net cost is at the end of the year.
 
 

What’s the risk?

 
Well, with any good investment there are risks. What an investor has to consider is their capability of funding the policy and loan year over year.
 
Most of the strategies require a 10-year deposit window having the required capital to invest is crucial. So you do not want to create a policy that spreads you to thin. Secondly is interest rates.
 
We are in a low-interest-rate environment as we speak, should there be an increase in interest rates can the investors sustain the loan payment? 
 
 
 
This strategy is not for everyone. It does offer a different take on life insurance, and can defiantly be used to help propel the right client forward. But like any strategy consult with your advisor beforehand. 

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What You Need To Know About Guaranteed Life Insurance

What You Need To Know About Guaranteed Life Insurance

What Is A Guaranteed Life Insurance?

 

Well, it’s life insurance that regardless of your situation, you can purchase even if you have been declined before.

 

What’s different about guaranteed life insurance? 

 
This depends largely on the company you apply with. Depending on your health condition these insurance companies may limit the amount of coverage you can receive. Most guaranteed issue policies range between $5,000 and $1,000,000 of coverage. The difference between those policies comes down to the number of questions you will have to answer. For more coverage, you will need to answer more questions.
 

Additional Limitations

 
For some people who have recently experienced major health concern, there might be some other stipulations. One of them being a 2 year wait period. Meaning if you were to pass away in the first 2 years, your beneficiary will only receive the amount you have paid in premium, not the total death benefit. After the first 2 years your beneficiary will receive the full amount of coverage.
 

Length Of Term 

 
How long the coverage lasts depends on the policy. You can get the coverage that is level and will be there for you as long as you need it. For some people who have recently purchased a property or have a debt, they would like to cover a term 10 or term 20 coverage option might make more sense.
 

Price 

 
The cost to own guaranteed life insurance is slightly more expensive than a normally underwritten policy. This is why if you are in good health, you should try and apply for a normally underwritten policy first. As a normally underwritten policy will be more affordable.
 

Who Is This Right For? 

 
This is great for people who are later in life, looking for coverage. People who have some medical conditions that might make it hard for them to apply for other coverage. Or anyone who has been declined for life insurance in the past.
 

What Are The Other Options? 

 
The other options would be considered to be a traditionally medical underwritten. Yes, there will be some questions you need to answer pertaining to your health. But as well, there will be some version of a medical test (salvia kit, urine sample, or blood profile) that might be required as well.
 

How Do You Know Which Is Right For Your Own Particular Case?

 
It’s best to contact an unbiased broker. Our friendly non-commissioned staff is trained to help guide you from application to approval. For any additional information please feel free to contact us for more details.
 

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Life Insurance Over The Age Of 55

Life Insurance over the age of 55

Can you still purchase life insurance over the age of 55? It’s no secret that the longer you wait to purchase life insurance, the more it will cost you. But what do you do if you are over the age of 55? 

Well, good news. Insurance companies have realized for years that the “boomers” are getting older. Many of which never purchased life insurance when it was more affordable. Which poses a problem insurance companies decided to solve. 

Many companies today offer a wide variety of programs for people 55 and older. 

We can say confidently, there’s a plan for you. The biggest factor in choosing a plan is your health.  For people 55 and older who do not take:
 

  • Prescription medication 
  • Ingest nicotine products
  • Have had, or do have a serious illness  

Then a traditional insurance plan that is medically underwritten is your best option. The reason for this is your cost to own life insurance will be less then our next option. 

Guaranteed issue. Guaranteed issue policies were created because people are getting older. Many of which need life insurance but have some condition that may have prevented them from getting coverage in the first place. 

Guaranteed issue might be slightly more expensive then traditionally underwritten polices. However, they are the easiest way for your loved ones not to be out of pocket when your time comes.  


For more information feel free to reach out to us and a non-commissioned advisors will be happy to help. 

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The Top 10 Tips By Experts For Purchasing Life Insurance

The Top 10 Tips By Experts For Purchasing Life Insurance

Confused about your life insurance options? Here are our TOP 10 tips when purchasing life insurance.

1. Purchase life insurance when young

It is no secret, the older you get, the more it cost to own life insurance. Considering your need for life insurance is greatest when you are young (with a family, debt, mortgage etc) it is also when it is most affordable. It always makes more sense to look at your options when you are young.

2. Go for level premiums if you are thinking long term

Level premium means you know exactly what you will pay for your policy. Term 100, Whole Life, and universal life all offer level premiums. Level premiums mean you can plan for the future and know regardless when that day comes your family will be taken care of.

The alternative would be a increasing policy, also known as term insurance. Where your premiums start low but over time increase. Eventually term coverage becomes unaffordable. But there is good news, you can purchase term insurance to cover temporary liabilities like your mortgage. This will keep your cost down while getting you the coverage you want.

3. Think about your income

When you pass away so does your income. More and more families today rely on 2 incomes to survive. Life insurance can be used to help replace some of that income so your families won’t suffer.


4. Consider Critical Illness and Disability Insurance

Life insurance is there to protect your loved ones in the event you pass away. But what if you become unable to work or critically ill? If you or your family would not be able to continue to pay your expense you should consider disability insurance or critical illness.

Disability coverage will continue to pay you an income in the event you are unable to work due to injury or sickness.

Critical illness protection pays out a lump sum if you are ever diagnosed with Cancer, heart attach or stroke. Some polices will have more illness covered. Look into your options when purchasing CI.

When purchasing life insurance its best to consider disability and critical illness insurance too.

5. Change your life style

For some of you your weight or life style is what is increasing your cost to own life insurance. There are actually companies that will lower their premiums for people who are actively improving their life style.

6. Review your policy

Your need for life insurance changes over the span of your life. It’s best to review your policy every few years as you may need more or even less coverage.


7. Application process is easier than you think

Most people forget this but you need to be approved before you can accept the coverage. That approval process is the application. Ask your advisors what the application process is and what you can expect. Here is the hint: it is easier than you think.


8. Choose the best policy for you

 

As mentioned, you have a few different options when purchasing life insurance. The best way to choose what policy is right for you is to understand why you want the coverage in the first place. Are you looking to cover a mortgage, replace a income or cover final expense. Then ask whether your coverage protects you. It is that simple.

9. Get a few options before deciding

Most people do not understand what options exist when purchasing life insurance. Regardless of the company you are looking at its best to get a few options to really understand which is best for you.

10. Not deciding doesn’t only affect you, it affects your family

The hard truth is that by not deciding means your family and your loved ones are not protected. It is always better to get some coverage in place, then let your loved ones suffer.

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