We hear a lot about financial literacy these days as Ottawa promotes its efforts to educate Canadians about money management, saving and investing.  Clearly, the first steps begin with our kids, and not just in the classroom. Parents, grandparents, and other caregivers can provide some of the building blocks to economic maturity by sharing their own experiences with money.  Here are 3 ways you can help them understand basic financial concepts. Let them manage their own income.  It’s important for your kids to have their own money to manage – and mismanage.  They will learn a lesson (albeit painful sometimes) when they spend their entire allowance on an impulse purchase. Help them set goals and allocate their money.  Set goals for donating, savings and spending and give them separate piggybanks to allocate the chosen portion of the money they earn. Show them the power of compound growth.  Open a savings account, GIC or other ...

It is great to see that we are moving further towards consumer education and financial literacy in our country.  A large part of our jobs as financial advisors is to raise the education and awareness of our clients, so they are more comfortable making decisions and more importantly, sticking to their decisions.  A new guide has been released that helps consumers understand the basics of insurance. Here is a clip from the FCAC's recent Press Release: "The Financial Consumer Agency of Canada (FCAC) is officially launching its new publication, Understanding Insurance Basics. This publication provides a definition of insurance, and explains how it works and why we might need it. "Insurance is an important part of financial planning, but the field may sometimes be daunting," says FCAC Commissioner Ursula Menke. "This new publication is a starting point for your research: it describes the most common types of ...

Why start the discussion? Owners of small businesses and other key executives spend a lifetime to acquire the knowledge, experience, judgment, reputation, relationships and skills that make them valuable to the business. When these people are taken out of the business due to death or illness, the business loses a key member of the management team which in most cases, has a severe financial impact.  What are some of the issues when losing a key person? lenders may cut back credit creditors may press for immediate payment debtors may delay making payments employees and customers may lose confidence, and competitors may take advantage of the situation. In small business situations, finding an immediate replacement with the same qualifications as a deceased or ill key person is difficult and can be expensive. How do businesses replace this expertise? This is a difficult endeavour, as it is often necessary to look outside of the business to find a replacement.  If anyone has ...

This is a great question as life insurance provides protection where other asset classes may not.  The right to designate a beneficiary under a life insurance contract must be taken seriously, as there are different rights and protection available depending on who is named, and how they are named. Beneficiary Designations: Irrevocable:        Where a beneficiary is designated as “irrevocable” the owner has in a way given control over to the beneficiary.  The owner may not surrender that contract or make any other changes that would impact the potential benefits of the policy without the consent of the irrevocable beneficiary.  A creditor would not be permitted to force the owner to surrender the contract during the life of the policy. At death, the death benefit would be paid directly to the irrevocable beneficiary so that the proceeds would not be subject to the claims of creditors of the owner of the policy. Revocable:          Where ...

We are proud to introduce Insure Right - five steps that will provide clarity about your insurance needs. Ask yourself this: “If I die suddenly, will my family have enough money to maintain their current lifestyle? What if I become critically ill or can’t look after myself? Who will pay the bills or look after me?”   Anything can happen. That’s why it’s important to get all the coverage you need to protect your lifestyle, your family and everything you’ve worked hard to achieve.  Knowing that buying life and health insurance can be a daunting task, we have decided to make it easier for you, with Insure Right: five steps to help you determine the right life and living benefits insurance coverage for your specific needs.   REVIEW THE 5 STEPS WHEN YOU ARE READY TO LEARN MORE, CONTACT A CREATIVE PLANNING ADVISOR

If you are a shareholder of an incorporated business and considering life insurance, you may have wondered “Should my life insurance policy be personally owned, or through my corporation?”  Unfortunately, the only true answer to this question is “it depends”.  Unless specifically restricted, all individual life insurance policies can be personally owned or corporately owned and the correct choice for you will depend on the following factors: What is the purpose of the insurance? Who will ultimately receive the proceeds of the insurance? How quickly will the funds be required after death? Are there creditor protection concerns within the company? Are there any liability concerns? Are there any family law concerns? Let’s explore some of the reasons a business would require life insurance: Key Employee Protection – companies will buy life insurance to protect the business in the event that there would be a financial loss if a key employee were to die or become disabled. Buy/Sell Funding – ...

By Joe Gilinsky, FCIS, TEP, RHU “Insurance companies are in business to make money and not to pay claims”. “How can I be sure that my policies will pay out if I die or become disabled?” These are concerns of many people whom I have met and served during my 27 years as a Life and Health Insurance advisor. Several have had experiences where insurance claims were denied outright or circumstances where the claimants had to wait many months and sometimes years for payment of their claims. It is therefore understandable that claims for unpaid “Insurance” proceeds cause great concern and aggravation amongst the insurance buying public. I am here to dispel this concern particularly about Life, Disability, Critical Illness and Long Term Care Insurance where it is indeed a myth that the insurance companies avoid paying claims by any means possible. I have not enjoyed my involvement in the paying of claims ...

Based on the traffic reports on the 400 every week, there are a great number of families preparing for trips up to the family cottage.  Over the past few months, we have been getting into conversations about cottages, and they have now expanded to include much more than what was on the barbecue this past weekend (which was delicious). Whether you own a cottage, or will eventually inherit one, an open dialogue is important.  There’s no argument here – the following problems are all nice to have! There are many things to consider in any plan that involves family and different generations, but perhaps the most difficult is just starting the conversation.  This is a very awkward subject for some families, where Children may feel especially uneasy opening up this subject with their parents, but it’s in everyone’s best interest to deal with any issues early on. In fact, many parents find ...

When you are approved for a mortgage, your lender is obligated to offer you mortgage insurance.  That may seem convenient and honourable, but… before you say yes to mortgage insurance, you should know what buying creditor mortgage insurance really means.  Here are some key areas to consider:   What’s the difference?  I can save so much money by using the bank – AND I don’t have to give blood! Individual insurance plans require you qualify medically BEFORE you can receive your policy.  This means that the insurance company is fully aware and comfortable with insuring you. If you have creditor insurance and need to claim for an illness or death, the bank will NOW start to investigate your health history… and have the freedom to deny a claim if you incorrectly answered one of their questions. If you file a successful claim, the BANK is the automatic beneficiary of your certificate.  By using Private / ...

Critical illness insurance is a form of financial protection that provides a lump-sum payment in the event of the diagnosis and survival of a serious illness. Here are a few questions we hear on a regular basis: I’m in great health - Why Do I need Critical Illness Coverage? There are several factors to consider when making the decision to purchase Critical Illness insurance: Anyone can become critically ill - and survival is more likely than ever because of advancements in medical science Not all medication and surgical procedures are covered by government health plans There may be gaps in employer-sponsored group coverage Most Canadians are not prepared for the impact a critical illness would have on their finances There may be tax consequences associated with withdrawing funds from retirement savings to fund recovery How many Canadians actually get sick each year? Every year in Canada, ...

Since all of our insurance and investment advisors are independent, and partner with our firm by choice, our clients wonder who CPFG is, and why our advisors choose to operate under our banner. To answer this question, it is important to clarify who we are not. We are not owned by an insurance company or a bank – we are 100% independent. Although we may have great relationships with some insurance and investment companies, we are not married to one, and in actuality, work as advocates of our clients when dealing with insurance companies – from a new policy to helping work through the claims process. Visualize a boutique law or accounting firm – there’s usually a group of partners who either started the firm or are its new leaders, they manage their practices and clients as well. A team of highly skilled associates manage and build their practice, and may be ...