Looking to buy life insurance?

Posted on January 22, 2021January 18, 2021 by Matthew Laker

So you are ready to buy life insurance, let me help.

Two ways I can help

1.Provide a complimentary Financial Analysis so you have a good assessment of where you are at and what kind of coverage you have. We call this the EFA (Expert Financial Analysis) (See – 3 Reasons to do an EFA)

2.Shop the market to find the best solutions for your needs.

How does it work? Three easy steps?

1.Set up the first appointment (over Zoom) to take the Expert Financial Analysis (EFA). No obligation to buy anything.

2. Set up the second meeting, and I will share the analysis results and some potential significant next steps to help you reach your financial goals. You will now have a working financial plan.

3. You decided the next step. I will be there to coach and encourage and educate along the journey.

All this can be done over Zoom. It’s like having a free coach on the sideline, cheering you on.

Next Step Contact me today.

Understanding whole life insurance.

Posted on January 15, 2021January 3, 2021 by Matthew Laker

What is whole life insurance?

Whole life insurance is part of what is called permanent life insurance. It provides coverage over the life of the insurance. It does not expire or require renewal and cannot be cancelled by the company unless you do not pay the premiums.

Premiums

Often the premium is level over the life of the contract.

Premiums are set based on longterm assumptions around investment returns, expenses and mortality cost. The insurance company will project out how much this will cost over the lifetime of the contract.

The part of the premiums that is above the cost of death are invested for the company.

Premiums can be paid annually, semi-annually or quarterly or monthly. The cost does increase a little as you move away from the annual cost. Many people find it easier to manage to do monthly payout.

Death benefit options (Guaranteed or adjustable)

Guaranteed

The death benefit and premiums do not change over the life of the policy. Even if the insurance company’s cost goes up and mortality costs increase, it stays the same.

Adjustable

The death benefit and premiums become adjustable based on experience. The death benefit and premiums are guaranteed for a time, then reviewed and adjusted. This can increase or decrease the amounts.

Nonparticipating vs participating polices

This is about how the surplus of cash is handled. A surplus of cash may occur if the cost is down, or investments are higher.

In Non-participating polices – after making sure the provincial requirement of reserves levels in the policy is kept. The insurance company keeps the surplus as profit. If there is a shortfall, the company bears the burden of that shortfall.

In participating polices- the company will use some of the surplus to keep the reserves at the level required by law. However, if not needed there, the surplus may be distributed to the policy holder.

Different payment options are available for such policies (reduction in premium, accumulation, paid-up, term insurance, death benefits and cash values.

For example, if one chooses a paid-up option. the annual policy dividend could be used to purchase an additional amount of death benefit or help cover the premiums.

Limited payment whole life

There are different payment options from ongoing, to single to limited. The idea of limited works like this, lets say at age 45, you buy a life policy, but you buy a 25-pay. This means you pay for 25 years, and at 70 the premiums stop, but you have coverage past the age of 70.

Cash Value

The policy over time will build a cash along side the policy that grows tax free. This can be used for different things such as a loan. The owner if they were to surrender the policy before death would be entitled to a portion of this cash value.

Where to start

It is good to start with a financial review of where you are at and what you will need. There is no need for getting something you do not need.

Contact me today about getting a free financial analyst.

Health concerns and life insurance

Posted on January 8, 2021January 9, 2021 by Matthew Laker

Do you believe you need life insurance but have some concerns regarding your health?

You are not alone. Please do not give up; I can help.

First, you are right about the need for life insurance, and if you have health challenges, it can be hard to get insurance.

Second, your health challenge does not mean that you can not get health insurance. I know you may even be worried about the cost as health problems can increase the cost of insurance.

As a broker with Experior, on your behalf, we can access a number of different companies that give you options. Yes, you have options.

Just because you have a medical challenge should not stop you from getting life insurance.

Some people simply do not want to have to do any medical exams or deal with blood work. You have options.

There are life insurance products out there called “simplified.” That means that you have options.
So what questions do you have?

Would you like to learn more?

Let’s talk.

What can life insurance be used for?

Posted on December 29, 2020January 3, 2021 by Matthew Laker

Life insurance = protecting your income.
The best time to buy life insurance is now.

Life insurance is about protecting your loved ones. One advantage of life insurance is it is tax free for the beneficiaries.

Life insurance can be used to:

Pay off debts, for example, a mortgage or credit card debt.

It can help to keep a certain standard of living for those who are dependent on you.

You can leave an inheritance to your family.

It can help pay for estate fees and burial expenses. Many forget that there is a cost to death. For example, if you leave a cottage to someone, they will have to pay tax on that.

What every your beneficiaries want. This is good because it gives them control.

Every significant change in life should bring an evaluation of your life insurance needs.

Do you have any questions?

Are you looking for life insurance or like an evaluation of what you have?

Why life insurance is better than mortgage insurance

Posted on December 23, 2020April 30, 2021 by Matthew Laker

1. You are not paying for diminishing protection.

I did not think about this at first when I was buying a house. The mortgage insurance pays the balance of the mortgage left at the time of death. That payment goes to the bank and not to you.

What this means is you bought your house for $400 000. Let’s say there is $200 000 left. You pay the same premium throughout the diminishing mortgage, and they will cover that 200 000 left on the house when you die.

But if you got life insurance for 400 000 to cover the house in case of your death. Your beneficiary get $400 000 to direct where you or they want.

2. Better estate planning.

When buying mortgage insurance, you are just thinking about one debit. But what if you could step back, take a financial analysis and assess where you are at and what are your future needs and goals. Life insurance can take into account a broader range of needs and help you better protect your family. The beneficiary can be helped with funeral costs, other debt and provision for a legacy to your grandchildren.

3. It stays with you.

If you change lenders, this does not mean that your insurance will move with you. That will mean an increase in cost. Your life insurance will stay with you no matter where the mortgage is.

4. Health is assessed at the time of underwriting.

What many people do not understand is many mortgage insurance is assessed after you die. So if there was an existing issue you may not be covered. CBC did a series on this.

When you get life insurance it is assessed as you are applying. If the policy is issued that means you have it. That is not the case with the other way.

So do you need a review of where you are at let’s talk.