What do we do when our term life insurance is up? Many get a surprise in increased cost.
The journey through loss and grief
My take away from a ted talk by Jason B. Rosenthal.
https://www.ted.com/playlists/776/wisdom_for_living_with_death_and_loss
Funeral and end of life planning
There are so many things to think about when it comes to funeral planning. Here is a resource to help with that process.
I do not need life insurance I will use my savings
I do not need life insurance; I will use my savings?
What happens when I die to my savings.
If I have savings in a bank
- Suppose your accounts are joint accounts. Then the joint name on the account has access to it.
- If the one who passed is the sole name on the account, then more often than not, the account gets frozen. Then the will and estate have to go through probate before the funds are freed. Let’s be clear this is going to take time.
RRSP/RIF and TFSA
- If you have a beneficiary listed, they will transfer to them.
- There could be tax implications for the one receiving, and one needs to be careful they do not go over their limit.
Example of tax
- person dies in June, and money is not transferred until December, and an increase in value occurs. One will pay tax on that increase.
- If no beneficiary listed you, it will go to the estate and maybe subject to probate.
Benefits of a Segregated fund through an insurance company
- TFSA and RRSP, and RRIF can be purchased through insurance segregated fund products.
- They are very competitive with mutual funds.
- Money passed to the beneficiary is outside the estate and tax-free.
- Using a segregated fund allows for the transfer of the assets to a successor with no tax impact as shared above.
- If the account value has dropped below the last account value reset, you will benefit and receive the higher amount.
- Make sure spouse is listed as a beneficiary to receive the death benefit options with Segregated Fund.
Finally, final expense insurance helps cover costs associated with dying, ensuring your family gets help fast and or a little extra.
Let’s start with a free financial analysis of where you are and what you need and get a plant that fits your uniqueness.
I’ve Been thinking about life insurance
We are a one-income family. Now I have struggled with that reality for some time. Not because I think my wife should work. No, we decided a long time ago that she would stay home to invest in our kids, and I would work. It was an excellent choice for us; perhaps it is different for you.
However, two things I have struggled with through the years.
One, can we generate additional income sources in our life. So, on top of doing some personal life coaching for people. At the moment of writing this, I am also developing another small business option around helping people master their money(Investment, insurance, debt reduction, financial Education, etc. – want to learn more? Let me know or looking for help )
Two, I have wondered what would happen if I would die or get seriously injured, what would my family do?
We have worked hard to have no debt in our life and keep reasonable control of our budget. But death is a massive disruption to life.
In one of my roles as a pastor, I have buried enough people to know the cost around the time of death, can be a burden for families.
So I am on a journey, learning about life insurance and investments and how it can help.
Life insurance is about trying to manage the potential of disruption and the financial impact upon my family. As a Dad, it is about taking responsibility for my family. My young family and wife depend upon my income.
As I look at financial planning in my life, I am coming to see this as a foundation for caring for my family.
What about you, how have you developed or planned for the risk of and reality of death?
What questions do you have about life insurance? Have you found a better option than life insurance?