Archive for February, 2012

Video About Final Expenses Your Estate Will Pay

It costs money to die – see how Final Expenses all add up

In Canada there are no special Estate Taxes as there are in the US. Instead there is one more tax filling your estate needs to complete called your terminal tax filing. Upon death, all your worldly assets are assessed for taxation, and capital gains and tax sheltered savings in vehicles like RRSPs will all come due and become taxable at their fair market value on the date you died. So, the final tax bill can be a huge part of your final expenses.

Along with taxation, your final expenses include all the other fees payable by your estate upon death. Theses fees include:

• morgue fees
• funeral home charges
• legal fees
• executor fees
• probate fees

And there could be more depending on how you arranged your affairs. It all adds up and costs thousands of dollars. Even the most common funeral in Canada runs around $9,000 on average (and that doesn’t include all the taxes owing).

One solution to pay for all these costs at death is via permanent life insurance (either whole life or universal life insurance). Proceeds from a life insurance policy are paid out tax free to your estate or names beneficiaries who can then pay off all these mounting costs.

Get life insurance advice to offset final expenses

Our brokers at Life Guard Insurance can show you how cost effective life insurance can be to generate the much need cash flow you will need for final expenses. Contact us today and we can walk you through an estate plan to cover the many final expenses and taxes at death.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about final expenses would be very much appreciated.

VIDEO: Renting vs. Owning Your Life Insurance

Term vs. Perm Life Insurance – Which is better?

In this video we discuss term vs. perm life insurance – the age old debate. which type of life insurance is better. Well, I’m not going to answer that question for you since there is a place for both in your insurance and risk planning portfolio. The major differnece, to keep things simple, is one is like renting an apprtment and the other is like buying th ehouse.

Term life insurance is much cheaper in monthly premiums than buying permanent life insurance. However, it is designed for a short period of time, like 10 or 20 years, to protect you from the financial cost of shorter term things, like paying off the mortgage or the cost of raising children. In the end, if nothing happens to you and you are still alive at the end of the term (or whenever you cancel the policy) the premiums you have paid are like a sunk cost. Very much like renting an appartment. You have the home to live in while you rented it, but when you move out there is no money given back to you by your landlord.

Permanent life insurance is different. With permanent life insurance you are “buying the house”. The cost of buying permanent life insurance is based on how long the life insurance company thinks you are going to live (statistically). This is like amortizing the cost of you life insurance over the rest of your natural life (or you could quick pay the policy in 10 to 20 years by paying even more today). In the end you will actually own the underlying block of money you originally bought as a death benefit – but you insured for the full amount form day 1. Permanent life insurance also has a cash value, which makes it an asset to you. You have equity in the policy. The trade off is that perm life insurance will cost you more than term.

Find out more about Term vs. Perm Life Insurance

Get some advice from one of our brokers at Life Guard Insurance about term vs. perm life insurance, and which type of insurance is right for you.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about term vs. perm life insurance would be very much appreciated.

Canadian Banks Do Not Act In the Spirit of The Bank Act

The Bank Act: Following the letter of the law not the spirit of the law

Most Canadians are not aware of laws in The Bank Act to prevent Banks in Canada from actively selling personally owned insurance products to clients. The federal government of Canada has decided to try and keep the insurance and banking industries separate. There are many good reasons for this (see the previous three articles about how the banks operate and how they might sell life insurance if they were allowed). The overriding argument by the government and the insurance industry is that Canadians will be much better served by licensed insurance professionals who make it their primary focus to sell and service insurance products vs. offering credit. A financial professional needs to specialize in their field to be good at it. Doing a little of everything leaves clients lacking in-depth and knowledgeable advice.

The insurance industry is very complex. It is divided into two main parts – 1) Life and Health Insurance; and 2) Property and Casualty Insurance (also called Home and Auto). Insurance professionals would need to hold different licenses in each area to do that side of the business and most choose one or the other because each is so complex. Asking bankers, who are also specially trained to sell credit products to then also be licensed and up to speed on insurance would be too much. This is why The Bank Act separates the two industries: insurance professionals can’t lend money and bankers can’t sell insurance!

What does The Bank Act actually say?

The Bank Act has broken up the sale of insurance products in bank branches into two categories: Authorized Insurance Products and all Other Insurance Products. Here is a list of what the banks are authorized to sell in branches:

• Credit or charge card related insurance
• Creditors’ disability insurance
• Creditors’ life insurance
• Creditors’ loss of employment insurance
• Creditors’ vehicle inventory insurance
• Export credit insurance
• Mortgage insurance
• Travel insurance

All these forms of insurance are based on group insurance principles and are attached to an existing loan or mortgage from the bank (except for travel insurance). The insurance is designed to pay for all or part of the loan, and no money is payable to the insured person. So, in effect the insurance protects the bank from the credit it extends the client. This is arguably the least valuable or worst type of insurance you can buy.

All other types of insurance are prohibited for sale in banks. These would include personally owned life and health insurance products, home and auto insurance, business insurance, etc. The legislation goes further than to just make it illegal to sell the products. Promotion of such products is also illegal. Here is a brief overview of prohibitions on the bank from the 2006 Parliamentary White Paper, Banking On Insurance:

Moreover, sections 8 through 10 of the Regulations prohibit banks from conducting other activities in the area of insurance, including:

• sharing customer information with insurance companies (subsidiary or otherwise), agents or brokers;
• providing telecommunications devices (e.g., telephones and computers) to customers for the purpose of linking customers with an insurance company, agent or broker; and
• conducting business in a location that is adjacent to an office of an insurance company, agent or broker, unless the bank clearly indicates to its customers that the two premises are “separate and distinct.”

Tied Selling: Another thing clearly spelled out in The Bank Act (Section 416.1(1)) is the concern over tied selling. The Canadian government wants to protect consumers against one all encompassing financial services company that compels people to buy other insurance products in order to get what they really need, like a loan. The Act reads: “A bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the bank and any of its affiliates, as a condition for obtaining another product or service from the bank.” This is another major reason why banks are not allowed to sell insurance products in branch.

Are Canadian Banks Following The Bank Act?

I think this is a good question. Are banks really adhering to these laws, or are they finding ways around them? The answer is very simply they are trying very hard to get around the law. Let’s look at a number of examples in the last 5-6 years that shows the attempts by Canadian banks to circumvent The Bank Act and sell insurance.

Adjacent Branches

One Canadian bank in particular (but the others are now starting to follow) has been building adjacent insurance branches next to their banking branch for over 5 years now. You have probably seen them – a larger bank branch with an insurance office stapled on the side. To conform to the law, there is no connection between the two “building” from the inside and they are constructed completely separately. But to the consumer, they look like one single unit. The branches have very similar logos (mainly the colour scheme is reversed for the insurance logo), the signs are placed on top of each other on the street, and the two “separate” branches are part of the same bank box construction. Since most banks in Canada build branches that are stand-alone buildings, the adjacent insurance branch looks like it is part of a single offering of financial services from the bank. All that’s missing is some colourful footprints on the sidewalk leading from the banks door over to the insurance door that say “Insurance This Way” on them.

Bank Website Selling Insurance

This was a contentious issue for the government who tried to stop banks from promoting insurance products via their websites. On Oct 11, 2011 the Minister of Finance, Jim Flahrety final had enough of the back and forth and imposed new regulations. “We want to ensure the Bank Act reflects the new reality of online banking, to avoid attempts by banks to do on their web sites what they are prohibited from doing at their branches,” said Minister Ted Menzies, Minister of State for Finance. “We must make sure there is a level playing field where small businesses can compete, thrive and create jobs.” Until this time the bank’s website was not considered a part of the branch, as defined by legislation, and banks had been aggressively promoting their insurance products online. People would get message alerts when logged into their online banking to try sell them life insurance and home and auto insurance regularly. This is a clear contradiction, as banks aggressively promoted online banking as a way to do your everyday banking more efficiently, but for the purposes of insurance sales it was not an electronic extension of your branch.

Mail Out Offers for Insurance

Many Canadians still receive their bank statements in the mail every month. This was another great opportunity to market insurance products by the bank. Mail out stuffers about life and home and auto insurance were regularly put in with your monthly bank statements. These stuffers would direct you to the website or a call centre to get quotes and apply for coverage. Again, this is a violation in the spirit of The Bank Act, since the monthly bank statements coming out are again an extension of the services from your branch, so it would be your branch promoting the sale of insurance products. Does it really matter whether or not is occurs on branch premises or not?

Quasi-Banks Selling Insurance in Branch

There are a number of “banks” that do not fall under The Bank Act. These include Credit Unions and some regional/provincial banks formed under different legislation. The Credit Union Act also prevents Credit Unions from selling unauthorized insurance products to members, but they have been pushing hard to change that. This is another ongoing battle where Credit Unions are employing a staff of licensed insurance agents to sell life and health insurance, but they are doing it outside the bank branch. This means client information is being passed from the Credit Union branch network to insurance agents (who are also employees of the Credit Union) for the purposes of selling insurance to their members. Even though this is a clear violation of The Bank Act, it might be not as clearly defined in The Credit Union Act (I haven’t researched it as much). There is at least one regional bank formed under distinct provincial legislation that does not have any particular restriction to selling insurance through their branch network. This “bank” (that is not a bank) is sending referrals directly from branch staff to licensed insurance agents for the purpose of selling life and health insurance policies. Sales appointments are taking place inside the branches and in many cases, branch staff that are not licensed to sell insurance are acting on behalf of the agent for things like policy deliveries and getting paperwork signed by clients.

It’s a really hard line for the banks to follow. They want to enter the insurance business, selling life insurance, health insurance, home and auto insurance, etc. They have built some of Canada’s largest insurance companies. Having their policies distributed through the existing independent broker network to sell their products is fine – not a violation of the Act. Using an in house sales force and call centres that reach clients completely separate of the branch network and any of its affiliated business units is also fine – not a violation. But how do you control it. Every activity of the sales force would need to be scrutinized regularly to prevent abuse. How to you really keep the staff from the adjacent insurance branch from forming relationships with bank staff next door.

I know the banks have tried hard to comply with the letter of the law, but the spirit of The Bank Act is not being followed. Banks in Canada are trying every legal way to get around the Act to sell insurance (to the point the Federal Government had to amend the regulations regarding websites to qualify them as part of the branch services to stop the promotion of insurance products). In the end, Canadian banks are very large, very powerful organizations that have a lot of power with our government and over the regular people of Canada. These restrictions are in place to protect you – the consumer. It’s a fight that is far from over.

What do you think?

Tell us what you think about The Bank Act, its restrictions for banks selling insurance products, and whether or not you think the banks are acting fairly and in good faith. We would love to hear your feedback.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about Canadian Banks violating the spirit of The Bank Act to sell insurance would be very much appreciated.

Smoking Cigarettes Costs More for Insurance Premiums

The elevated risk of being a smoker for life insurance

If you are among the 20% or so of Canadians who regularly smokes cigarettes, then you will be faced with a higher cost for your life insurance. In fact the insurance companies treat smoking very black and white. If you have had even one cigarette in the last 12 months they will consider you a smoker and increase your premiums. I guess there is no reasonable graded scale for smoker, quasi-smoker and non-smoker. Either you smoke cigarettes or you don’t. And if you do, then you present an elevated chance of health risks and a shortened life expectancy.

Not every smoker suffers from common illness related to smoking. We have all heard the stories of so-and-so’s great uncle who smoked 2 packs a day and lived to 95 without any health problems. Even if people like that do exist, there are still hundred who suffer cancer, heart disease, emphysema, and many other smoking related illnesses. Being a smoker puts you amoung that group, and it is the statistical average risk of the group the insurance company is looking at – not at you individually (unless you already have a serious smoking related illness).

BIG TIP: If you ever quit smoking, and are off all forms of tobacco and nicotine products for a period of 12 months (include nicotine gum and the patch) then you can have your life insurance premiums reduced to non-smoker rates. Once you have qualified for non-smoker rates the life insurance company can never again raise your rates, even if you take up smoking again in 3 or 4 years. You can save more money than just the cost of cigarettes when you quit – your life insurance premiums will probably be cut in half too.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about smokers having to pay more for life insurance premiums. would be very much appreciated.

Can You Buy Life Insurance If You Smoke Marijuana?

Many Marijuana Smokers Qualify for Standard Smoker Premiums for Life Insurance

The majority of people in Canada who smoke marijuana just do so occassionally. In this video I want to explain to you the difference between casual/recreation marijuana use and habitual marijuana use when buying life insurance. Life insurance companies take a very different view-point of the risk you present the company depending on how much marijuana you smoke on average.

For those who only occasionally use marijuana, like 2 to 3 times per week, they will just be treated like a standard smoker (assuming no other medical conditions). Habitual marijuana users will not be looked on so favourably. I think there are many reasons for this. The old argument that marijuana use is a gateway drug to harder substances is a factor once a person is using it very regularly. Also, there is a stereotypical lifestyle that is associated with habitual marijuana use that is not very healthy. But, I think the biggest factor is the hard evidence that people who regularly smoke marijuana do have much higher instances of health problems and an unhealthy socioeconomic standard of living.

Even though this might not be you, the insurance company is looking at broad statistics, and any risks you bring, be they lifestyle choices or health problems, are evaluated on the average or most typical outcome. So, your choice to smoke marijuana, either occassionally or regularly, with result in either standard smoker premiums or an increased premium (and even a possible decline if you smoke a lot).

Marijuana users can get confidential insurance advice

I hope you find this video helpful. And, as always, if you would like to speak with a qualified insurance broker about whether or not you could qualify for life insurance, please contact us. We can give you private and confidential advice about your insurance planning considering your marijuana use.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about buying life insurance when using marijuana would be very much appreciated.

How to Get Non-Smoker Premiums if you’re A Cigar Smoker?

Lite to Moderate Cigar Smoking can Qualify for Non-Smoker Rates

If you’ve ever looked at buying life insurance and you smoke, you know there is a large difference between smoker and non-smoker premiums. If all you smoke are large cigars (not cigarillos, which are the size of a cigarrette but use cigar tobacco) you can very easily qualify for non-smoker premiums and save a lot of money.

Almost all life insurance companies in Canada offer some leniency when it comes to smoking large cigars. The typical allowable amount is an average of 12 cigars per year or less (that’s one per month). If you are an occasional cigar smoker – like you’ve done it while on vacation in Cuba or go to a cigar bar a few times a year with friends, then you can easily qualify for non-smoker premiums without much trouble. Once you smoke more than 12 vigars per year, all insurance companies except one will rate you as a smoker, and you cost for life insurance will more than double.

There is one life insurance company that has more favourable treatment for cigar smoking – Canada Life. They allow up to an average of 52 cigars per year (that’s one per week). So if you like to indulge in cigars on a somewhat more regular basis, then Canada Life is your best choice for life insurance because their non-smoker premiums are still very competitive and you can get it even if you are a moderate cigar smoker.

One thing you can’t qualify for is preferred rates, or discounted premiums for a non-smoker in good health. Even if you are an outstanding athlete, a few cigars per year means you can only get standard non-smoker premiums. No discounts.

Hope you enjoy the video above and leave us a comment below about other useful life and health insurance videos you wish to see. If you need help getting lower premiums for your life insurance, please contact us to speak with a life insurance broker in your area.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about getting non-smoker premiums as a cigar smoker would be very much appreciated.

Video about Various Investment Products Available from Life Insurance Companies

Seg Funds, and Annuities and GMWBs, Oh My!

In this short 4 minute video we showcase the various investment products available to Canadians from life insurance companies. Many of the products are very similar to those available from the Mutual Fund Dealers Association (MFDA) while others are turly unique to the life insurance industry.

When it comes to designing income generating products, life insurance companies are far more advanced than traditional investment management firms. With the guarantees they can offer as insurance contracts, Canadians can invest their money into an Annuity or a GMWB/GLWB (Guaranteed Minimum/Lifetime Withdrawl Benefit plan) and know they will have a steady stream of income for the rest of their life.

Investment products produced by insurance companies you can buy from a life insurance broker are:

• GICs (Guaranteed Investment Certificates)
• Accumulation Annuities (like a GIC but an insurance contract with a named beneficiary)
• Segregated Funds (pooled investments like mutual funds but with a death benefit and maturity guarantee)
• GMWB/GLWB – allows you guaranteed income with possible upside when the stock markets go up
• Annuity – guaranteed income for a term or the rest of your life for a heaped deposit

We hope you enjoy our Insurance Industry Investment Video.

Transcript of Insurance Industry Investment Products

You have a lot of choices when it comes to investment products. You may already have well-known investment products like Mutual Funds and GICs.

 

But did you know that Life Guard Insurance offers a wide range of investment products produced by insurance companies?

 

Many are similar to well-known investments. Some are exactly the same. And some are unique, and only available through an insurance contract.

 

The first type of investment is Guaranteed Investment Certificates or GICs, also called Term Deposits.

 

A GIC is a fixed-term investment that pays a guaranteed interest rate until it matures. These are among the safest investment products.

 

The return depends on prevailing interest rates and how long you invest – three months, one year, two years, five years and up.

 

GICs are guaranteed by Assuris for up to $60,000, or 85% of the promised guaranteed amounts, whichever is higher.

 

Second are Accumulation Annuities — a guaranteed investment very similar to GICs.

 

Because Accumulation Annuities are offered only by a life insurance company, they have different guarantees.

 

They also have the added benefits of a beneficiary designation and potential creditor protection.

 

Third is a Segregated, or Seg Fund. This is like a mutual fund — a pool of investors’ money managed by professionals to provide a good return over the long-term.

 

Seg Funds are actually insurance contracts with two components: an investment that produces the return, and an insurance contract that covers the risk.

 

Unlike mutual funds, seg funds guarantees from 75% to 100% of your principal will be available upon maturity.

 

Seg funds also offer creditor protection and allow you to name a beneficiary to avoid probate and legal fees.

 

The next investment is Guaranteed Minimum or Lifetime Withdrawal Benefit Plan – GMWB or GLWB. This investment product guarantees you will never lose the principle you invest and you will have a steady stream of income throughout your retirment.

 

These have been very successful helping Canadians transition from saving for retirement, to generating income in retirement.

 

Both offer a guarantee on the withdrawal of 5 to 7 percent of their portfolio each year.

 

The GLWB is a lifetime benefit, while a GMWB is a benefit for 15 to 20 years.

 

And finally, an Annuity is an excellent income generating investment product.

 

Simply put, an Annuity is a contract between you and a life insurance company.

 

You invest money. The insurance company provides you with a steady income for a fixed term or the rest of your life.

 

Annuities are a popular alternative to Registered Retirement Income Funds, especially for people in their later years who no longer want to follow their portfolios or take any risk.

 

Your annuity income will depend on the amount you invest, the interest rates at the time you purchase the annuity, your gender, your life expectancy, and your age at the time you bought it.

 

As you can see, there are many choices for investing your money to create income and wealth.

 

Life Guard Insurance has a network of professional brokers that can answer your questions and help you decide which investment products might be right for you. Call us today for all your investment needs.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Insurance Industry Investment Products would be very much appreciated.

Disability Insurance Income Protection Important to the Super Rich

Even being with financial independence, Sydney Crosby bought disability insurance

In the last day or two it has been all over the news that Sydney Crosby, the world superstar of hockey and one of Canada’s favorite sons, might have to retire from the game and claim on a massive disability insurance policy he bought – $20 million benefit. Upon hearing this story I immediately thought Sid the Kid was very smart to purchase disability insurance to protect his income. Then, after hearing he paid $1,000,000 for the coverage, all up front, I began to question if this was a wise move with his money.

You see, Sydney Crosby is a wealthy, superstar hockey player. He is the face of hockey, both in Canada and in the more lucrative US market. I’m sure, even if he is forced to retire because of continuing concussion symptoms, he would have a great career inside the NHL, and his endorsement deals would go on for many more years before his bankable name fades. Why then, being already financial secure and with bright future prospects even off the ice, would Sydney Crosby spend $1 million to buy disability insurance? This article works through some of my thought process of whether or not it is worth it for Sydney to buy the insurance and how his income protection policy compares to personal income protection available to regular working Canadians.

Crosby’s policy was very limited compared to personal disability insurance

Let’s look at Sydney’s actual policy. It seems to be very limited in nature. Not everything is clear from the news reports on how the policy was designed, but one thing is: Sydney’s disability must be TOTAL and IRREVERISBLE so that he never returns to the game of professional hockey once retiring from the NHL. If Crosby is forced to retire due to a disability, his benefit ($20 million) would only be his if he never returns to hockey again. If, somehow, medical advances and recovery treatments allowed Sid the Kid to return to playing professional hockey in the NHL, he would have to pay back the entire $20 million benefit.

What we don’t know is if the condition causing the disability had to come from an on-ice accident, or if he was covered 24 hours a day, both on and off the ice. We also don’t know if he was insured against illnesses, like cancer and heart disease, or was the coverage just accident related. These would also be limiting factors if they were part of the policy.

Simply because of the dangerous nature of professional sports, insurance companies design specialized insurance products for pro-athletes making the mega-salaries. These are not the common off the shelf disability insurance policies that regular Canadians can get. And, quite frankly, they are more expensive for the amount and type of benefit the person is getting.

As a comparison, a 40 year old man in good health and a non-smoker, needing $5,000 of tax free income from a disability policy (personally owned) would pay around $200 per month for a top of the line, professional disability insurance policy. The type of benefit on this plan would cover:

• Disability from both injuries and illnesses
• Disability benefit of $5,000 per month payable to age 65
• Coverage for your regular occupation through to age 65, so the insurance company can’t force you back to work flipping burgers in McDonalds to get you off the books
• Coverage for total disability and partial disability, meaning you could still receive half your benefit even if you were working part-time
• Ability to go on and off claim with multiple disabilities or recurring disabilities throughout your life
• Premiums locked in and guaranteed never to increase

There are even more bells and whistles that can be added to a personal/professional disability insurance plan that would make the benefits much more valuable than Crosby’s policy.

Total cost of Sid’s policy is similar to personal disability insurance, but all up front

Sydney Crosby had to fork over $1 million, up front, to get his disability insurance coverage. That is a hefty price tag to pay for insurance that, if you’re lucky, will never pay out a dime. Only if he is forced to retire from the game and career he loves will he see his benefit of $20 million. A sad scenario, but typical of all disability insurance claims. So, let’s look at this with some basic math (no present/future value of money calculations thank you – this is supposed to be understandable).

Sydney Crosby spent 5% of the total benefit up front to have disability insurance of $20 million. Does personal disability insurance cost the same, more, or less? Taking the example above of $200 per month for $5,000 coverage and we can quickly see this man is paying 4% of the cost of the benefit for a much more comprehensive policy. AND, our 40 year old man does not have to pay everything up front. He pays installments over time. If he ever did become disabled, his premiums would be waived until he is able to return to work. If he never returns, his premiums are gone forever.

Let’s take an example. Our 40 year old man buys his disability policy and pays $200 per month for benefits. At age 55 he becomes permanently disabled for the rest of his life. How much did he pay in and how much benefit will he get? He has contributed $36,000 for his first 15 years of coverage. At age 55 he will receive benefits for the next 10 years, until age 65. He is then paid out $600,000. His total cost to benefit ratio in this scenario is 6%. Not a bad investment to have 10 years of lost earnings replaced for only 6% of the total value of those earning. We only realize the true value of insurance at claim time – before that it feels like a monthly bill.

Income protection is worth the cost, even for rich people with financial independence

On reflection, Sydney Crosby did a very smart thing. If he is forced to retire because of his concussions, he will receive the largest disability insurance payout in NHL history. He doesn’t really need the money to live, but he is liable to lose his $7.5 million per year salary. Sid has only played 7 years in the NHL. Gretzky played 20 NHL seasons and Bobby Orr only 9 before knee injuries forced him out of hockey.  His $20 million payout only covers about 3 years of his gross income as a player. Sid is still potentially losing 5 – 10 more years of NHL mega-salaries, which could add up to over $70 million.

Who knows how long the endorsement deals will last. Who knows if he will suffer from concussion symptoms his entire life and never able to hold down a regular job. Who knows if endorsement deals will dry up over night. Who knows, who knows, who knows! And that is why you buy disability insurance. Because your continued income is just too valuable to gamble away, and your whole future depends on your ability to earn.

Have you taken steps to protect your income?

For most people in Canada, continued income is even more valuable than it is to Sydney Crosby. Unless you are independently wealthy, able to retire comfortably today, you need income. And what if that income is at risk every day you walk out your front door? Does your employer offer comprehensive disability benefits? Are you self employed without coverage? How long could you last financially if tomorrow you couldn’t go into work, and were disabled indefinitely?

At Life Guard Insurance we have insurance brokers across Canada who can design a disability insurance plan to protect you income and lifestyle. Contact us today for your personal disability insurance income protection plan.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about Sydney Crosby’s disability insurance policy would be very much appreciated.

Getting Instant Life Insurance Quotes has Never Been Easier

Easy Access to Instant Life Insurance Quotes in Canada

It has never been easier in Canada to get free, unfettered access to instant life insurance quotes than with Life Guard Insurance. Unlike most other websites in Canada, Life Guard Insurance never asks you for your name, phone number and email address just to run a simple online quote. We know that many Canadians are just browsing, and would like to do their shopping without being bothered by sales people. That is why we don’t put barriers in your way to getting as many instant life insurance quotes as you want.

Think of it like shopping in an electronics or clothing store. There is so much to see and take in you just need some time to browse around and get a feeling for the merchandise and what you are looking for. People walking through the doors of a store might come in different categories:

• The casual shopper: who is there just to browse around and isn’t likely to buy anything today.
• The deal shopper: who is looking through the stock, and might buy today if they find a really good deal.
• The confused shopper: who has a problem and thinks there might be a solution in the store, but doesn’t know what that might be.
• The motivated shopper: who knows exactly what they want and flags down a sales person the minute they walk in the door to get in and out of the store ASAP.

The same goes online when people are visiting the website. We feel that running instant life insurance quotes could fit into any of the four shopper categories, and really only the last 2 are looking for immediate service.

Doing multiple instant life insurance quotes

Imagine you need some life insurance. You might not be sure how much you actually need, but you want to see how much it costs for different amounts of coverage. Then you see different types of products you can quote – Term 10, 20 and 30 or Term 100 and even Whole Life Insurance. Hummmm. Maybe you want to get many different quotes to see what the price differences between the products are.

If you were using a life insurance website that asked for your name, phone number and email address each time you ran a quote that could get very annoying. Also, the insurance company on the other end of the website now gets multiple hits from you checking different products and amounts of life insurance. You could get phoned (tele-spam) and emailed (email-spam) over and over again, just because you were doing multiple comparison quotes.

Wouldn’t it be nice to know you can use an online system, like our Quoting Tool at Life Guard Insurance, as much as you want and never enter your personal information and never be marketed to just for browsing online.

After you’re done quoting we would like to help if you have questions

At Life Guard Insurance we have life insurance brokers across Canada ready to help you, if you ask. Just like in that store above, there are lots of sales people hanging around waiting to serve you. All you have to do is ask. We provide a contact form right on the Quote Centre webpage, or you can use one of our many other contact forms on the website – or just call us at 1-877-811-4043. We can connect you with a professional life insurance broker in your local area who can help find you the most cost effective and highest value life insurance policy to meet your needs.

Limitations of Instant Life Insurance Quotes Online

There are a number of limitations to using the online life insurance quoting tool. It isn’t the same as speaking with a licensed life insurance broker who can customize a life insurance plan for you and your family. Here are some of the limitations you might face:

• Cannot show joint life insurance policies or multi-life policies which are cheaper than individual plans
• Cannot show universal life insurance quotes because they are too complicated
• Only simple life insurance plans can be quoted, so no:
  • Disability Insurance quotes
  • Critical Illness Insurance quotes
  • Long Term Care Insurance quotes
  • Complex Life Insurance quotes
  • You won’t see the cash values of permanent life insurance quotes online, so you can’t really compare apples to apples

These problems are easily remedied. You can use our specialized online quote request forms (linked to above) of you can contact us to be connected to a local life insurance broker who can get you the customized quotes you need when shopping for life and health insurance online.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about instant life insurance quotes online would be very much appreciated.

Video about Estate Planning in Canada

How legal council, professional accountants and life insurance help with estate planning

Our latest video about estate planning shows how, through preparation and forethought, you can be prepare for the eventual costs of death – taxation and final expenses. Depending on the value of your estate there are major tax consequences at death, which can be dealt with through drafting and executing an estate plan. Also, putting in place a legacy through your estate plan can make sure loved ones are looked after, charities or organizations you support are given funding, and business continuation plans can be fulfilled.

Proper estate planning involves many important dosuments:

• A Will to make sure your wishes and desires are fulfilled after your death.
• A Power of Attorney to make sure you personal and business affairs are properly managed if and when you can not longer look after them yourself.
• A Personal Health Directive to tell your family and medical professionals what level of care you want if you are so ill you can no longer communicate your wishes.
• Life Insurance Policies to make sure at death that tax free cash flows into the estate to minimize the tax burden and/or to named beneficiaries and fulfills your wishes.

This video will help you understand the many things you should think about when designing an estate plan, and to make sure you have all the pieces in place, with the help of qualified professionals, to make sure your estate is intact and passes to those you want to give it to.

We hope you enjoy this 3 minute video.

 Transcript of Estate Planning in Canada

They say there are two certainties in life: death and taxes.

 

You can’t escape them, but you can help your family deal with both issues… through Estate Planning.

 

An Estate plan lets you decide while you are healthy, how, when and to whom, the proceeds of your accumulated wealth will be distributed.

 

You probably know you need to have a Will. Along with that, your estate plan package includes a Power of Attorney, Personal Health Directive and Life Insurance Policies.

 

But these are only one part of the puzzle you should solve for your family now, so your final estate settlement will go as smoothly as possible?

 

There are many pitfalls that can get in the way of fulfilling your final wishes:

 

Things like Taxation…Family conflict over your will…Excessive legal costs …Double taxation… and other legal and tax issues.

 

To design an estate plan that will work for you and your family, you need the help of several professionals:

 

A lawyer with estate experience, who knows the legalities of wills, powers of attorney and personal health directives.

 

An accountant familiar with estate taxes.

 

Brokers with Life Guard Insurance can refer you to the best Estate & Tax Lawyers and Accountants in Canada to assemble your estate planning team.

 

Your insurance broker also plays a significant role in your final Estate Plan, to help you optimize your wealth and the legacy you leave behind to your loved ones or charitable organizations you support.

 

An exempt insurance policy is the most cost effective way to create tax-free cash flow at death.

 

This easily accessible cash is very beneficial during settlement of assets. Life insurance proceeds can be used to pay off the final tax bill to the estate and preserve the wealth in the estate.

 

Life insurance proceeds can also be used to fund charitable donations through the estate, which creates very favorable tax deductions.

 

It is also a way of moving wealth to a direct named beneficiary without public disclosure of assets through the will and wealth losses due to legal, executor and probate fees.

 

Take a look at the list of ten estate planning tips on our website so that things go smoothly for your heirs later on.

 

Do you have a solid estate plan in place? If not, or if you would like a thorough review of your estate plan, contact Life Guard Insurance.

 

 Life Guard Insurance is in partnership with a network of professional life insurance brokers across Canada. We can put you in contact with an insurance broker in your area who will give your unique situation the special attention it deserves.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Estate Planning in Canada would be very much appreciated.