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 ...

By Joe Gilinsky, FCIS, TEP, RHU I had insured a client and his wife 8 years ago as it was their wish to protect their mortgage in the event of death so that the survivor would be in a position to retire the mortgage if he or she chose to do so. They had decided to insure themselves independently so that they would be the direct beneficiaries of each other’s insurance instead of the bank being in control of the funds. At the time of claim, it frequently is to the survivor’s benefit to receive and deal with the insurance proceeds to suit the needs of the claimant. In the interim, the husband had assigned the policy on his life to his business bank in order to secure a Business Line of Credit where the outstanding balance owing to the bank will be taken from the insurance proceeds and the residue, if ...

Of course it is!  Often quoted pension actuary, Malcolm Hamilton, finds in the Nov 27, 2009 Retirement Savings Research Program that for a 65 year old opposite-sex couple: at least one will live to approximately age 90; approximately 10% of couples will have one partner that lives 8 years beyond the normal life expectancy; approximately 1% of couples will have one survivor who lives 14 years beyond the normal life expectancy.  That's impressive! What does this mean to you? Couples entering retirement at age 65 can expect to have at least one partner still receiving income at age 90.  That's 25 years of income that needs to be provided by all sources.  This could be from the Canada Pension Plan, Old Age Security, RRSP/RRIF income, private pensions and other investment assets. In partnership with Investor ...

by Joe Gilinsky, FCIS, TEP, RHU When people ask me what I do for a living, my usual answer is: “I assist people to protect their families, their incomes, their businesses and their estates with the effective use of life insurance should they die too soon, live too long or become disabled and critically ill along the way.” As a result of hardships experienced by certain of my clients in recent years, I have realized that this act of “Protection” in our business has a far greater meaning than merely placing the insurance in force. I have always felt that we insurance advisors are the only people who deliver cheques to the bereaved whereas many others deliver only bills! I have a young, married client of 40 who cannot practice as a veterinarian because of a debilitating illness. However, the cheque that he receives each month as a result of his disability income policy ...

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

CLU Comment - May/Jun 2010   <-------- Click to open The CLU Comment is a publication distributed by CLU Institute®.  The most recent issue (May/June 2010) outlines what is taxable in the event your life insurance policy is “disposed of”.  Also there are recent proposals that may alter the way life insurance policies are valued when donated to a charity.  Both of these topics and more are discussed in this issue.  If you have questions or comments about the material provided, please call our office.  We look forward to speaking with you soon.  Background Information: DISPOSITION OF A LIFE INSURANCE POLICY Income Tax Act references: Subsection 148(1) – amounts included in computing policyholder’s income [on disposition of a life insurance policy] Section 54 and subparagraph 39(1)(a)(iii) – [exclusion of a life policy (other than a segregated fund contract) from the definition of capital property] Paragraph 56(1)(j) – life insurance policy proceeds [inclusion in regular income] Subsection 148(4)– income from ...