Life Insurance

Understanding Long Term Care Coverage

Understanding Long Term Care Coverage

I easily get wrapped up in our work and need a reality check. Nick Murray, a known voice among financial advisors, gave the keynote address.  Most notably, he focused on two key goals that seniors face: dignity and independence. These two goals must guide our retirement planning even before discussing investments, estate planning and insurance. More than ever, dignity and independence…

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Insurance Planning and the Golden Goose

Insurance Planning and the Golden Goose

Remember Aesop’s fable of “The Goose Who Laid the Golden Eggs?” The greedy owner couldn't wait for the goose to lay the next egg. He killed the goose, thinking he'd get all the gold up front. His eggs went runny! A smarter farmer would have taken proper care of his champion goose. He would have been rewarded with better quality…

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Crash Test Your Mortgage Life Insurance

Crash Test Your Mortgage Life Insurance

Thousands of crash test dummies have been sacrificed for our driving safety and I’m grateful every time I drive! We also need to crash test your financial plan against the catastrophe caused by disability, critical illness and death. This includes properly structuring your mortgage life insurance. The risks are very real. Here are numbers for non-smokers before the age of…

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Mortgage Life Insurance’s Perfect Storm

Mortgage Life Insurance’s Perfect Storm

You may not actually have full coverage when you buy mortgage life insurance from your bank. Wait… What?  There bank clerks who offer you mortgage life insurance are usually not licensed to give you insurance advice. The only advice you receive is in the form of a brochure. You are not offered much time to consider and evaluate the offer.…

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Protect Your Family from a Monster Mortgage!

Protect Your Family from a Monster Mortgage!

RBC has published their Housing Affordability Measure since 1985. It reflects the costs of owning a detached bungalow at market value. The higher the measure, the less affordable a home is. As an example, a measure of 32 per cent means that home ownership costs consume 32 per cent of a typical household’s pre-tax income. This includes mortgage payments, utilities…

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Life Insurance Rewards Good Health

Life Insurance Rewards Good Health

Over 30 years ago, insurance companies came to the blinding realization that non-smokers live longer than smokers. Non-smokers welcomed this revelation, especially when they found they could save piles of money in insurance costs. A few decades later, we experienced further improvements through “Preferred Class Underwriting.” We started asking questions like “If I exercise regularly, don’t drink too much alcohol, have never smoked in…

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Negotiate Your Term Insurance Renewal

Negotiate Your Term Insurance Renewal

Many of us go through this drill! We buy a term insurance policy that increases at a certain rate every 5, 10, 20 years or so. In our optimism, we ignore the impact of those increasing premiums. However, those years tend to pass by very quickly. Suddenly, we are faced with a doubling of our insurance costs, or worse! Many…

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Death and Estate Taxes

Death and Estate Taxes

Some life insurance companies preach the "theory of diminishing needs" for life insurance. It says that we will become self-insured by paying down debt, accumulating investment assets and reducing expenses. I once believed this theory. However, I have experienced otherwise. Life happens. As a result, needs for life insurance coverage often continue longer than we originally expect. Consequently, term life…

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Will a broken smartphone destroy your future?

Will a broken smartphone destroy your future?

The last time you bought a car, home appliance or electronic item, what add-on does the salesperson usually ask you to buy? Of course – the extended warranty. Most salespeople seem puzzled whenever I steadfastly refuse to buy the extended warranty. My answer is quite simple: “I only insure against catastrophic losses.” If my smartphone breaks down right after the regular warranty, is this…

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Insurance Planning is Like Using Power Tools!

Insurance Planning is Like Using Power Tools!

Having grown up in an age of real fireplaces and having done some old-school camping, I also helped gather firewood. I then patiently watched my dad quickly buck it into lengths using his chainsaw. Until I learned how to use it, it scared me! A chainsaw is a powerful, useful tool but dangerous in careless, inexperienced and uninstructed hands. Slowly,…

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