Newsletter

May 2021

Life Insurance Premium Sale! 

For those who have been thinking that you need life insurance or currently own a life insurance policy, I guarantee you this is worth a quick read. And there is a solid chance that it will save you some money.   

 

If you have had your life insurance policy for a few years, you must re-evaluate the details of your policy… specifically your coverage amount, the term of your policy, and most importantly, the monthly cost.  And I would urge you to do this before May 31, 2021.  

Why the urgency?

 

For two specific reasons: 

  1. Since you purchased your policy, has your life circumstances changed?  Have you changed jobs, started a family, had more kids, bought a home, remortgaged a home or started a business?  These are all critical factors when making sure you currently have the right policy.

 

  1. One of the major national insurance companies that I work with is having a sale.  Until the end of May, they are offering 10% OFF life insurance premiums for the life of all new policies.  This sale is unprecedented and never happens.

 

I cannot stress to you how HUGE a deal this is.  I have been in the financial industry for over 18 years, and I have never seen such a significant reduction in monthly premium costs.

 

Before you go thinking that 10% is not that much of a savings, keep in mind that this savings is for the life of the policy.  *For example, if you were only to save $11.42/month over a 20-year term, that would be a savings of $2,740!  That reason alone is enough to find out more information. 

 

Depending on your age and the coverage amount, you may be able to get up to $2M of coverage with no medical exam! That is right… no nurses, no needles, and no tests!  Just a quick interview on the phone. 

 

These savings are only available through the end of THIS month, so you will need to act quickly to benefit.

 

The process is swift and streamlined… on average, completed over Zoom in less than 30 minutes.  

 

Remember, YOU are your most valuable asset.  

Let us make sure you and your family are protected with the best coverage at the absolute best cost.

February 2021

Learn more about segregated funds

We all love the idea of earning a great return on our investments, but how comfortable are we when the markets take a turn? For some, the ups and downs are just part of market life. Yet, for others, the ebb and flow can cause a lot of sleepless nights.

 

If you are looking for a little security, a segregated fund may be the right investment choice for you. Segregated funds, or seg funds for short, are similar to mutual funds in that your investment is pooled with other investors’ assets and invested for you. A fund manager is responsible for selecting the investments that make up the fund. Where segregated funds differ is in the guarantee.

 

Only offered through insurance companies, segregated funds include an insurance contract that protects your investment and makes it easy and efficient to pass your assets on to a beneficiary or beneficiaries.

Here are just some of the advantages of investing in a segregated fund.

 

  • Death Benefit Guarantees: 75% to 100% of your original investment (minus withdrawals) is guaranteed upon your death.​

  • Deposit Maturity Guarantees: 75% to 100% of your original investment is guaranteed upon reaching the contract’s deposit maturity date. If not, then it would be the market value at that time.

  • Potential creditor protection in the event of bankruptcy or lawsuit.

  • Excluded from probate. 

  • Private and confidential beneficiary designations.

  • Growth potential of the markets with access to investments from around the world.

If I pass away before the maturity date, is there a death benefit guarantee?

Whether your contract reaches the deposit maturity date or you die before maturity, you (or your estate) would receive the higher of the guaranteed value or the market value. The guaranteed value is 75% or 100% of your original investment (minus withdrawals), depending on the option you choose. Depending on the performance of the funds held in the segregated fund, the market value may be higher than what you’ve invested.

 

I have a will; why does it matter if my investment bypasses probate?

Probate is a public legal process that can be lengthy and expensive. Instead, your segregated funds can pass directly to your beneficiaries without having to go through probate, usually within a month or so and, there are no probate fees to pay or time delays, reducing the stress on your loved ones. Segregated funds remain private and confidential, making them an excellent option for estate planning.

How do segregated funds protect against lawsuits and bankruptcy?

Because segregated funds are considered an insurance contract, they may be protected under provincial law from seizure by a creditor in the event you should declare bankruptcy. This may be an important benefit for professionals, entrepreneurs and business owners who might be involved in an unexpected lawsuit or bankruptcy.

 

Segregated Funds, Financial Services, Guarantees, Canada

What investments are available with segregated funds?

In addition to these benefits, there is some other information that would be useful to know. For one, you might ask what sort of investments make up a segregated fund? Just like a mutual fund, a segregated fund can be extremely varied. You can find seg funds that are composed almost entirely of cash and bonds, and you can also find entirely aggressive seg funds or small-capital investments. The choices are endless.

 

Segregated funds can be used for a variety of saving needs, including:

  • Non-Registered Savings Plan

  • Tax-Free Savings Account (TFSA)

  • Retirement Savings Plan (RSP)

  • Retirement Income Fund (RIF)

  • Locked-In Retirement Account (LIRA)

  • Life Income Fund (LIF)

  • Spousal Retirement Savings Plan (SRSP)

  • Spousal Retirement Income Fund (SRIF)

  • Locked-in Retirement Income Fund (LRIF)

  • Prescribed Retirement Income Fund (PRIF)

  • Restricted Locked-in Savings Plan (RLSP) *For Federally regulated plans only*

  • Restricted Life Income Fund (RLIF) *For Federally regulated plans only*

Growth, protection and security for your future

With segregated funds, add another investment vehicle to your repertoire, and take comfort in knowing that your assets are well invested and protected, allowing you to build a fully diversified investment portfolio! 

June 2020

Property Tax Deferment

I bet you have questions. Are you wondering why you might decide to defer? 

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2 ways to qualify...

REGULAR PROGRAM

Any homeowner on title that is:

55 or older during the current year or

A surviving spouse of any age or

A person with disabilities

 

  • Registered owner of principle residence

  • Canadian citizen or permanent resident

  • Have lived in BC for over one year

  • Have paid previous years' property taxes, utilities, penalties, and interest

 

  • Have fire insurance policy

  • Have at least 25% equity of property's assessed value

  • Annual simple interest: Prime-2%

  • $60 one-time administration fee

  • $10 annual renewal fee

  • Must repay deferred property taxes with interest upon land title change, such as sale of home

FAMILIES WITH CHILDREN

Any homeowner on title that is financially supporting:

A child under age of 18 or

A child of any age with disabilities

 

  • Registered owner of principle residence

  • Canadian citizen or permanent resident

  • Have lived in BC for over one year

  • Have paid previous years' property taxes, utilities, penalties, and interest

  • Have fire insurance policy

  • Have at least 15% equity of property's assessed value

  • Annual simple interest: Prime rate

  • No administration fee

  • No annual renewal fee

  • Must repay deferred property taxes with interest upon land title change, such as sale of home

The Strategy...

Don't have kids or don't want to leave them with more cash?  Planning to live forever? No problem!

 

Use the cash value from the life insurance policy while you're alive for:  an emergency fund, additional retirement income, paying annual property taxes, charitable donations, or anything else!

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The best thing is, by deferring property taxes you're getting more

while paying no extra money out of pocket!