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

Insurance Planning or Insurance Buying ?

When you bought your insurance did you simply buy a policy or did you complete a analysis of your needs ? I meet people who tell me they have life insurance and feel they did a good thing by owning a policy like 1 million coverage . As a lump sum a policy of even 2 million dollars may sound like you are covered but are you ? Continuing income to your family on death may be needed to replace at time of death and it may be needed for say 20 years until your youngest graduates , how much lump sum in cash do you think is needed to do that ? Do you have capital gains on tax to pay ? What about education for your children or spouse to get into work force after your death ? Do you have a charity to which you which you want to leave money to ? When we complete the analysis of your life , disability , critical illness or long term care coverage . We will work with you and leave nothing to chance !

Business Life Insurance !

Sometimes business owners are left wondering what type of life insurance they should own and there is a quick answer . You should own the insurance that is only secured after your needs have been properly analyzed . With insurance like shoes , one size does not feet all . There are coverages which are needed and plan design is also of paramount importance . Why ? If you need protection for 5 years , do not get long term insurance . If you are disabled will your disability insurance come through to pay a monthly benefit . Critical Illness insurance properly structured provides much needed cash after surviving 30 days from things like heart attack , cancer , stroke to name a few conditions. Best doctors , within a critical illness contract , also is extremely valuable and my clients have spoken highly of service they receive . When you are not sure what to get , what to discard and what to keep call me .

Business focused life insurance !

Business owners are rarely aware what life coverages they own or if is properly structured . We have been providing complimentary life insurance audits to over hundreds of business owners . Results have been shocking and clients unprotected . Does your life insurance coverage reflect the provisions of your shareholders agreement ? Do you have coverage you no longer need ? Can you afford to keep a blind eye to integrated planning ? Legal , accounting , insurance , banking , and investments are all intertwined . If you want valuable planning assistance beyond buying a product call me !

Insurance Planing should be done yearly !

As a professional in the insurance industry , I have delivered some large cheques for life insurance , disability insurance and critical illness insurance over last 30 years . It is never easy and seams to get harder . In last month I have had four of those "I have some bad news " which shake me up to my core . People I know are facing difficult times : families , businesses and individuals I care for . My only consolation is being able to say that the financial responsibilities are going to be able to get taken care of by proceeds from insurance . I am strong in many things but sitting with a man who is dying to make sure all paperwork is done is one of the toughest things in the world . For people that think insurance profession is about the sale or commission we make think again ! Do your insurance audit on a regular basis as it is something you do for yourself , your family and your business .

Insurance and tax deductability of premiums !

I can not count the number of times I have heard people ask if they can deduct life insurance premiums as a business expense . The answer is yes and no ! The rules are very clear what can be deducted and how to structure insurance policies to meet CRA guidelines . As a business owner , you need to be certain what the rules are for deduct ability and follow them . Over the years we have run into situations where someone says " my sales agent said I could deduct the premium on my life policy " and we have had to explain the rules regarding deductability which were painful wake up calls  . You are allowed to structure your affairs to take advantage of planning opportunities but my suggestion is do not push the envelope . I will walk away from a file before I will advise a client to do something which can be contested by CRA . I want to sleep at night knowing I have done a great service to my client and not put them in a adverse situation with CRA . PPROFESSIONAL INSURANCE PLANNERS WILL CLEARLY EXPLAIN TO YOU TAX AS WELL AS INSURANCE PLANNING OPPORTUNITIES !   

Life insurance quotations !

How do you make God laugh ? Tell him your plans ! Same can be said for acquiring a life insurance quotation , SOMEONE GIVING YOU A RATE BASED ON YOUR SMOKING STATUS AND AGE IS ALSO A LAUGHING MATTER  . People assume getting life insurance is like going to a corner store and buying a quart of milk . Not so . At best , life insurance quotation is a estimate of what a person of your exact age and smoking status will pay . Oh you were given a standard quotation by some sales agent telling you that is the rate you will pay for a specific amount of coverage . Did that sales agent take into account you are a diabetic , bit on a heavy side and take blood pressure pills . OH , he did not take that into account when he quoted you a super preferred rate and assured you that is what you will be paying for coverage ? We get asked for quotations , we represent 12 leading insurers , and I explain to clients that will be a guess based on all the information about them , their siblings and parents , hazardous sports and or job that I was able to obtain in our various insurance planning meeting . IT IS JUST A QUOTE AND A ESTIMATE PEOPLE !

Can you afford to be disabled or have a critical illness ?

Critical Illness insurance is the best insurance one can own and probability of claim in a lifetime is only second to dying . Disability Insurance is also very valuable to those that wish to protect their ability to earn a income . These coverages come in all shapes and forms and need to be customized to cover your specific need . So you think group insurance is a solution ? Good luck ! Call a independent adviser who represents leading insurers and understands contractual obligations . Why ? Because your financial well being depends on it .

Review your life insurance and save money !

When was the last time you looked at the life insurance contracts you own ? Is a train coming down the tracks and you have no knowledge it is coming in your direction ? Are you ok with wheels falling off on your insurance train  ? It is very sad that most people are unaware what coverages they own and what is going to happen to their contracts in years to come . Did you know that with a insurance audit you will gain clarity on what you actually have and what is it going to cost you to stay on the same plan ? We are helping clients save premium dollars as well as tax dollars . A ten year term policy automatically renews at 4 times , or more , then the original premium when you bought the policy . If you are healthy , we can save you half of the premium your old contract will COST you on renewal . I know , you are too busy to consult with a professional who is independent and represents 12 leading insurers !

Life Insurance Planning not A Life Insurance Sale !

What do I mean when I say Life Insurance Planning ? In my estimation way too much insurance gets sold as a package . Package selling is when a sales person gets a client to buy a policy based on other criteria then need . I see this more often then I would like to admit where an individual has bought a policy without any planning consideration . I was brought in by a individuals lawyer to complete a insurance audit for his client who was sold a policy by a salesman from one of the major bank . When I asked the individual why he bought the policy he said because his stock broker at the bank suggested it . The client is not only a resident of Canada but also has US Resident status .Two policies were sold , one a whole life policy with 100 k annual premium and the other a Universal Life policy at 100 k premium for total death benefit of 5 million . I asked the client if he required that much life insurance coverage he said absolutely not . Also the beneficiary on the death benefit was  the Estate which creates many other problems which I do not have time to point out . Estate Planning should be completed before you start buying policies !

Insurance Audit can save your Financial Future !

Insurance is one of those things that people purchase and then put contract away for whenever ! Would you omit to have a regular medical check up ? Would you have your automobile brakes checked and or other parts that make it functional ? Do you have your furnace serviced ? Why then would you not check your most valuable financial instruments ? Insurance audit completed properly will give you a accurate snap shot where you currently stand with : life insurance , disability insurance , critical illness insurance and long term care . Are you paying too much or too little to have right coverage ? Who will bring you next cheque when you are disabled or sick ? Who will provide for your family when you are gone ? It is not about selling insurance and it is about delivering cheques when they are needed the most . We have delivered a number of cheques over the last 29 years and never have I heard a widow , corporation , disabled individual or a critical illness survivor say the cheque is too big and individual  was over insured !