I do not need life insurance I will use my savings

Posted on June 3, 2021June 2, 2021 by Matthew Laker

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.

Final Expense Coverage

Posted on May 14, 2021June 13, 2021 by Matthew Laker

What is Final Expense Coverage?

The end of life is a stressful time for families. To help lower the decision-making process and stress at that time, we create a plan now.
This plan will look to cover the expense of your burial, funeral cost, as well any outstanding debts, probate fees, or other expenses.

Why Do I need it?

To not burden your loved ones with decision-making during their time of grieving, you preplan. This plan involves lowering the financial burden on your family. This also lets them know of your wishes for the funeral, etc.

Tax-free Benefits
Funeral Protection can become a tax-free benefit when used to fund an Eligible Funeral Arrangement with a licensed funeral provider in Canada.

Protection

For those who have investment funds that you want to leave to your family, we can set up protection so that creditors can not access them.

Funeral Planning

Here is a great tool to help you plan your funeral from one of the companies I work with –

Download: The funeral planning worksheet.

Let's meet for a complimentary meeting and get you set up.

Life insurance or prepaid funeral

Posted on February 23, 2021February 16, 2021 by Matthew Laker

Making a plan for final expenses is an important part of serving your family and managing your financial house.

There is a cost that comes with dying. There are options you have in helping cover those costs.

One option is a prepaid funeral or life insurance policy.

A Prepaid funeral lets you pay upfront for your funeral. Most let you set up the type of funeral you want and cover most, but not all of the expenses related to your funeral. Typical, you pay a lump sum or monthly installments. Any interest earned on the money is used to help pay the increased cost in the future. One advantage is you lock in cost at today’s prices.

A life insurance policy gives you and your family some flexibility. As well, it could give your beneficiaries a more considerable death benefit. The death benefit could be used to cover all the funeral costs and extra costs that will come with closing your estate. I would suggest alongside that have a conversation and write out in your will or other documents your wishes for your funeral. That part will not cost you, just some time.

Many have chosen prepaid funeral because they want to get everything taken care of for their family. However, with the same about of energy one can choose life insurance and still make those plans they want to.

Before you jump into that prepaid funeral. Hit the pause button and let me compare and look at the options that you have. Those options will be better for you and your loved ones. It will not cost you anything. There is no obligation, lets just talk about options. Let’s set up a 60 min meeting over zoom.