• Funeral expenses;
• Significant debt;
• Children’s education;
• Daily expenses.

There are two main types of life insurance: term and permanent (whole life). Term insurance is generally used for temporary needs such as mortgages and loans and permanent insurance is often used for long-term expenses (like funeral costs) and may include cash values. It is good practice to put insurance in place when we are young and healthy, as age and health status can affect pricing. Depending on health status, postponing to apply for an insurance policy and waiting at retirement could result in high premiums or having to apply for guaranteed acceptance products. These types of products can have high price tags and generally offer a more limited coverage.

Life insurance can also play a key role in estate planning. For example, it can help cover significant taxes upon death and ensure that assets such as a house or family cottage remain in the family.

Life insurance can also benefit business owners. Adequate insurance can:

• Be a tax shelter for savings;
• Be a source of retirement income;
• Help alleviate debt;
• Be a way to finance a buy-sell agreement between business partners.

If you are considering life insurance to help protect your family’s future or protect your business, an insurance advisor can help you evaluate your long-term financial goals and determine which option best fits your unique needs and circumstances. Taking this important step with a professional ensures that you make informed decisions for lasting security.

Virginie Benoit
Insurance Advisor
Alliance Wealth Management
Tel.: 705-753-2971 | vbenoit@alliancewealth.ca

Planning. Achieving. Together.

Alliance Wealth Management is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of Caisse Populaires and their communities. Trade-mark(s) of Alliance Wealth Management are used under licence by Aviso Insurance Inc. Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.

The post Is Life Insurance Really Necessary? appeared first on Alliance Wealth Management.

In general, traditional credit or mortgage insurance only pays off loan balances in the event of death. The death benefit decreases as you repay your loan, even if the cost remains the same. The amount of coverage is not flexible and cannot be changed in the future, and cannot be converted to permanent life insurance. In the event of refinancing or changing lenders, existing coverage cannot be transferred and a new insurance application must be completed. The insurance policy and its rates can change at any time and once a loan is paid off, the life insurance ceases.

Term life insurance is an affordable solution that can pay a tax-free death benefit directly to your loved ones in case of death. These proceeds can be used to repay loans and mortgages, or any other family expenses. You can choose the amount of coverage that meets your needs, increase or decrease it in the future, or eventually convert it to permanent life insurance. The policy is automatically renewed at the end of the term and is unaffected by your loans and mortgages. The rates set when your policy is underwritten are guaranteed for the duration of the policy, as are the renewal rates.

A personal insurance application involves a more in-depth medical underwriting process, taking into account factors such as health, lifestyle and family medical history.

If you would like to look at your insurance options or be the owner of a personal insurance policy, ask us how term life insurance could help protect your family’s future. We can help you evaluate your long-term financial goals and determine which option best fits your unique needs and circumstances.

Virginie Benoit
Insurance Advisor
Alliance Wealth Management
Tel.: 705-753-2971 | vbenoit@alliancewealth.ca

Planning. Achieving. Together.

Alliance Wealth Management is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of Caisse Populaires and their communities. Trade-mark(s) of Alliance Wealth Management are used under licence by Aviso Insurance Inc. Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.

The post Insuring Loans and Mortgages appeared first on Alliance Wealth Management.

Every situation is different and there is no one solution that will suit everyone. Here is an example of a client who had set a goal of leaving $1 million to his family when he died. Why the million? He and his wife had discussed having three or four children, and he hoped to leave a few hundred thousand dollars to each of them.

Initially, the client had a 20-year term life insurance policy to cover his debts and ensure that his family was protected in the event of a tragedy. He first looked at how to keep this policy, only to find that he could not renew it because the price increases dramatically in the 21st year, and again in the 41st year.

The other option was to convert his current policy to a permanent policy, meaning he could change it from a term policy (that renews every 20 years) to a locked in or level premium life insurance (premium stays the same through the life of the policy). However, he probably couldn’t afford it yet, because depending on the age at which he would make the conversion, the price would exceed his budget.

However, there is another option for this client: Permanent Insurance. Instead of covering himself (at an older age), he could cover his children’s lives (at their young ages) to provide the legacy he wished to leave behind. By taking out a policy on his children using the Participating Whole Life Insurance Policy, he could create wealth for three generations: his children, his potential grandchildren, and himself.

With this strategy, he invests the equivalent of the price of a car, over 20 years. His children will then have a policy with a potential cash value of $250,000-300,000 upon retirement. As a bonus, they will be able to transfer that wealth to their own families through the death benefit, estimated at over one million dollars.

The Participating Whole Life Insurance Policy has several advantages:

• The policy provides a cash value that can be used or paid to the client’s children if they need financial support while the client is alive.
• The Cash Value and the Death Benefit will continue to grow over the children’s lifetime.
• Since he owns the policy, he can benefit from its cash value until he transfers ownership to his children when he retires. THEY MUST NOT CANCEL THIS POLICY.
• There are various options to access money within the tax-free policy.
• With this policy, the client creates wealth for 3+ generations and offers a solid strategy for future generations.

Every situation is unique and no solution is tailored to fit everyone’s needs. In the context of this client’s situation, this turned out to be very advantageous.

Planning. Achieving. Together.

Alliance Wealth Management is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of Caisse Populaires and their communities. Trade-mark(s) of Alliance Wealth Management are used under licence by Aviso Insurance Inc.

The post How to Leave 1 Million to Your Children appeared first on Alliance Wealth Management.