The TK Advisor - The TK Group Ottawa Blog about Life Insurance, Critical Illness Insurance, Wealth Mangement and Estate Planning

Estate Planning , Do you need it ???????

Some people think that Estate Planning is only valuable for the rich and many times will not think of engaging in the process of organizing their affairs.Also , people think that Estate Planning is death planning so they avoid it all together.

Estate Plan can be fairly straight forward or complex. The magnitude of the Estate Planning process is dependent on a number of considerations : nature of assets that are owned ,family situation , business considerations , residence status of beneficiaries ,charitable;e donations , shareholder or partnership considerations are some items to look at .

Will planning should be the first consideration that needs attention. Personal as well as a business will has to be considered for anyone involved in a business arrangement. Power of Attorney should be created so that if an individual is incapacitated , there is a chosen individual who can act on behalf of a disabled person.

Shareholder or Partnership agreements should be created for anyone that has business interest with partners . Even if spouses own the business together they should have a shareholder agreement implemented .Some agreements have been in place a long time and they need to be reviewed . We have also met business owners who have gone to the expense of creating a shareholder agreements but did not bother to sign the document.

Trusts are convenient vehicles that have many purposes but individuals have not either been told how they can benefit them or they have decided that they do not want to set one up due to various reasons . In a proper situation the cost of setting up and maintaining a trust is very small when considering the benefit , it is like a pimple on an elephants behind .

Insurance audit has to be completed to ensure that existing contracts are properly created to protect all parties and not create a taxable event . Operating company, holding company ,partnership ,trust and or individuals can own policies . The best way to know how to structure your insurance programs is working with professionals who work within a team environment to provide you with integrated financial advice.

Properly created Estate Plan will give you tax efficiency ,peace of mind , harmony in family and meets your wishes.

Do not buy insurance buy freedom instead ?

Insurance coverage is not what you need and you already know that .What you need is cash to take care of your heirs when you die , take care of you and your family at time of disability and or critical illness .

Just today I was delivering a critical illness policy to my client when he asked me if a mutual of acquaintance of ours has critical illness coverage . I asked him why he is asking me that and he said that the individual has to undergo a triple bypass.

Can you , your family and your business survive a major illness ? This illness is not just yours but everyone else's who depends on you.

You are absolutely correct when you say that you can be over insured however I have never heard anyone say that the cheque we delivered on death , disability or critical illness was too much . I have heard though , I wish we would have bought more .

Never lose sight why you would want to buy protection : freedom , comfort ,safety , business continuance ,education ,standard of living , immediate medical treatment anywhere , business relief ,you love someone , estate preservation , keeping family united are only a few reasons !

Will Planning

Will is a very important instrument that you should have . If you are a business owner , a business will should also be given serious consideration to save on probate fees . I have met a number of business owners who have not gotten around to completing their will . I recently was introduced to a successful business man who when told about a need for wills suggested to me that he would go to the Grand and Toy to get a will kit . After a brief conversation with him , he realized that his corporate lawyer should be consulted as there are business assets in Canada as well as in US . Working with business owners for over 27 years some things just do not change , they forget to properly take care of themselves and their families . I have been asked on a number of occasions if I am a lawyer by people that do not know me and they are a surprised that as a insurance specialist I would have a wide range of knowledge . No I am not a lawyer  , just a professional in the financial services industry that has decided that I will provide much more then a product to our clients . I can introduce you to lawyers who I know are specialists in will planning  .Take the time and consult a lawyer who will take time to explain the provisions of will planning as it relates to you and a lawyer who will not instruct his assistant to print out a standard will for you to sign . In Ottawa , we have a number of legal firms that will do fabulous work for you and ask your friends to refer you a lawyer that is experienced . Every insurance agent is not a specialist as every lawyer is not in will planning .

Critical Illness Insurance and Long Term Care

I am puzzled why these products are not more sought out by consumers . Maybe the better answer is why are the insurance people not approaching their clients to secure this coverage . In my estimation , these two products may be the best insurance policies that you will ever get for yourself . Yes the insurance agents complain that Critical Illness is harder to get due to medical underwriters but in no way is it impossible . One professional once said to me at a social gathering , I was told by a insurance agent I will not get Critical Illness insurance because of my family history . The agent went to her trusty company general guide and followed the suggestion from her "ONLY" insurer she is allowed to sell for and they told her not to bother . Needless to say , our client , and his wife now have a critical illness policy today .Critical Illness is valuable to ultra wealthy and anybody else that can qualify for coverage . There are ways to structure this coverage to even qualify for tax deductibility of premiums. Long Term Care is even less presented to the potential clients . Why ? There are not many insurers selling this coverage and sales people , just like Critical Illness , rarely take the time to understand it . My assistant encouraged me to look at this coverage for our client base and it was a real eye opener . Again , work with a knowledgeable " TRUE BROKER " WHO CAN SHOW YOU A NUMBER OF PRODUCT DESIGNS AS WELL AS FROM A NUMBER OF INSURERS . Do not allow yourself to buy a off the shelf product without examining all the options . Remember , Critical Illness policies are not savings plans , they can return a premium in 10 or 15 years if you have not claimed but you have paid a considerable additional premium for this "PRIVILEGE ". Remember , you are buying protection so get as much coverage as you can afford .

Money for your health !

Are you in good health ? Do you know for sure ? What would happen if you survived a Critical Illness ? Doctor tells you after your heart attack that you are recovering and you can go back to work in 4 to 6 weeks . Great you say ! How will your life change ? Will you have 5 appointments a day and work again at night ? Let me tell you one thing for certain , everything gets questioned after a Critical Illness like a heart attack . You will want to change your lifestyle , statistics say that 70 percent of people that have a heart attack make the necessary changes to prolong their life , to extend your life . What allows you to change your life style , work and personal life ? Money ? Critical Illness provides you with a lump sum after survival of 30 days .We have already delivered two 500000 dollar payout within last year alone to clients who are very thankful they had the coverage . While your health is good , get your coverage in place . You should consider this coverage for your husband , wife or your partner . The other persons Critical Illness will ABSOLUTELY have a impact on you .

I urge you to get your coverage while you are healthy enough to qualify !

Long Term Care

There is a wonderful product which was created for people that want to make sure their future care is guaranteed through a relatively new product . Being a broker , we represent a number of insurers which have gotten into this market and we always custom design a solution which best suits our clients. The policies can be customized to meet your individual needs eg . increasing coverage with inflation , return of premium on death , joint coverage to name only a few of your options . Unfortunately , the number of insurers that offer this product is still limited but with aging population this will change . This coverage is not only available to clients near retirement and can be purchased by younger individuals .

Insurance is a valuable tool , do not miss out on its magic !

Properly created insurance program will protect you , your family and your business . Unfortunately you will not be around to see the true merits of a well crafted life policy but your beneficiaries will . Critical Illness insurance is a must but most of the people overlook this valuable coverage . Why ? Ignorance about how this can be of exceptional value at difficult times . If you want , the Critical Illness policy can give you back ALL the premiums if one day you decide that no longer is the coverage needed. I can tell you first hand the benefits of this coverage but do not wait !