RSPs Need Protection Too!
RSP season must be a delight for the people selling advertising. The ads pitching RSPs are everywhere, online and offline.
We are taught from an early age to save for retirement with annual (or more frequent) RSP contributions, but few people consider the tax consequences of simply getting their own money back. Hint: they have to pay income tax on all the withdrawals at their marginal tax rate. At death, providing there is no spousal roll-over, all contributions are taxed. That means $1M of RSP/RIF income would be subject to $460,000 of tax.
Aside from these ultimate tax liabilities, protecting retirement goals can be very difficult if certain life events occur. For example, what would happen if somebody suffers a heart attack or stroke or gets diagnosed with cancer?
W. Brett Wilson - the Dragon spoke!
Brett Wilson was the keynote speaker at a luncheon I recently attended in downtown Toronto. The event was hosted by Canoe Financial of which he is a principal. Do you remember Brett from Dragon’s Den? He was the mensch. (His personal website is refreshingly different and really interesting)
He shared his personal story and it turns out he is genuinely a self-made nice guy.
Brett’s advice to university students (and in all likelihood to us mature people J) resonated with me on 3 key messages:
Pssst...are you paying hidden finance charges on your insurance premiums?
Most people who pay monthly instalments for term life insurance, term or permanent critical illness insurance or long term care insurance don’t realize they are paying expensive financing charges of 8%+ for the “benefit” of paying monthly!
This does not apply to permanent universal life insurance but does apply to whole life insurance.
Consumers are accustomed to paying for their car insurance or home insurance on a monthly basis where the calculation is often a straightforward ‘annual premium divided by 12’.
Jack's Story - Part 2
Happy and HEALTHY 2013
Here’s an update to Jack’s Story, a post from November 19th .
Jack’s three children don’t get along at all. They live in different cities in the U.S. and Europe, with nothing in common but DNA. They are the very model of a dysfunctional family, unable to agree on anything, including the time of day.
Critical Illness Insurance....still a well-kept secret
“The cost of cancer can be devastating to Canadians, because the medications they often need to take at home can wipe out their life savings, said the Canadian Cancer Society.
I agree with them completely – Canadians desperately need that coverage asap.
Insurance for the UNinsurable
It’s no secret: the people who need insurance the most usually can’t get it.
There are many reasons for insurance underwriters to just say no: the applicant is too old, too short for their weight, has a poor personal or family health history, a criminal background, exotic travel, a passion for dangerous sports, etc.
It isn’t discrimination, just sensible business practice for the insurance companies who would obviously prefer to insure very healthy people in excellent shape with perfect genes who are least likely to get sick. They get to choose their risks, knowing they will lose money if they pay out too many claims.
Lost and FOUND - Jack’s Story
Back in the early 1990s, when I was just getting started in my career, Jack was already a retired entrepreneur and senior citizen.
We met through a mutual acquaintance (my late mother of blessed memory), and soon became friends. Jack was an active widower with grown up children and grandchildren who didn’t live in Toronto.
I remember accompanying him to his bank branch where he introduced me to the bank manager. They added me to the approved list for access to his safety deposit in case something happened.
ROP RIP?
It’s no secret that I love Critical Illness Insurance (CI), and it continues to amaze me that most insurance advisors in Canada have NEVER sold a policy! In my professional opinion, any insurance advisor who isn’t telling clients about CI is negligent.
When illness strikes, having CI often means the difference between losing a mortgage and losing the family home. It happens all the time.
The statistics are scary - you’ve probably seen them - 1 out of 3 Canadians will get cancer (and that’s just one of about two dozen covered conditions)
Huge Changes
The life insurance industry in Canada is undergoing huge changes while attracting little mainstream news coverage.
RBC Insurance recently cancelled their distribution contracts with most of their Managing General Agencies (MGAs). They went from 83 MGAs to just 14.
105-year-old Toronto woman forced to wait 10 years for long-term care told to wait two more
Why Key Person Insurance is important
Canada's Healthcare system is sick (and costing us lots of money)
It's no secret that our healthcare system forces Canadians to wait in line for medical treatments.
We developed ELITE U.S. Healthcare™ to provide funding and help people get immediate access to the world's best healthcare .
(Everyone knows someone who was forced to wait to see a specialist, or begin treatment.)
Buying insurance products online can be risky
Buying insurance products online can be risky – it is absolutely not the same as booking a theatre ticket or a buying some music to download. We live in a world of MISinformation, and much of that is available online. Canadians really need the advice of Trusted Advisors. Many online insurance sellers suggest otherwise. I disagree. Read THIS .
What do you think?
RBC will exit the market on many insurance products
I’ve been telling people there will NEVER be a better time to buy critical illness insurance, life insurance and other living benefits. Just last week Manulife raised premiums on Critical Illness insurance by as much as 30%.
Now comes RBC Insurance announcing major changes: they have decided to exit the market on many great products - see this article in the Financial Post " RBC latest to pare insurance products"
Insurance premiums are heading in one direction: UP
Welcome to My Blog
I want to personally welcome you to my blog. The purpose of this blog is to provide readers with my professional insights and observations coupled with the latest industry information to keep you informed. This is where you can have your own questions answered to help you make well informed decisions to protect yourself and those you love.
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Take care,