Countless are the stories of how life and health insurance improve peoples’ lives, families, business… even retirement and estate planning.
Wouldn’t you want the personal control that insurance offers to help manage or “change” the future. Some tasty bites here show how your insurance is serving you today, or what you’ve been missing. And if you suspected insurance would cost too much – put that out of your mind because I’ll show how Insurance is a powerful and distinct asset that can prove to be nearly FREE. Stay with me here…
- Ann is raising three children and making ends meet financially after losing her husband Bill to cancer. Fortunately the life insurance cleared a mortgage and debts, and pays Ann a life-income which is a bit like Jim sending her $6,000/month from heaven. Jim’s love keep providing for his dear wife and growing children by the power of life insurance.
- Charles and Deb treasure time with grandchildren and freedom to travel widely. Careers and business meant paying a great deal of taxes. Too much tax in fact! They want to ensure their estate will stay in the family — not be shared with government. Getting life insurance today will use pennies now to clear tax bills tomorrow …and preserve wealth for the family they love.
- Ed got rid of the mountain of debt they took on during Fran’s illness. Her final year of care was vital to the whole family, yet it forced the surrender of retirement savings and taking on 2nd and 3rd mortgages. Days after Fran’s funeral, Ed received her insurance benefits. After clearing everything and becoming debt-free, Ed took a deep breath to begin building a vision of how he and their teenage children would move forward.
- Gina and Herc achieved early retirement by wisely diversifying assets and reducing risks. Selling a business helped (see “Exit Strategies”). Real estate, insurance and other investment assets combine into a low-risk low-tax high-income (see “Life Income Mandates”). A surprise question from Gina was, “How is it, the insurance value never goes down when other things fall?” It led to the discussion of “vesting” that protects rising value in their whole life insurance.
So what’s the real deal with Life Insurance?
- Secures lasting Value because your Life has Value.
- Protects our loved ones when we can’t do it ourselves.
- Reduces the risks and shocks of other forms of investing.
- Combined with other assets, helps secure Income for Living.
- Removes impossible burdens that no family should carry.
- Helps us outlive and outperform our own mortality.
- Avoid betting you’ll die before a mortgage renews.
- Cuts costs of mortgage / business insurances.
- Cascades wealth to future generations.
- Peace of mind, today/tomorrow.
FREE? Is insurance ever free?
Love, Freedom, Life & Future
Jan paid $41/month for 4 years and her family received $650,000. It wasn’t exactly free …but what did it really cost, after all? Paid 330-times her deposit.
Ken paid $120/month for 3 years and received $250,000 himself – while living. This sum eased debts and medical bills, and helped his wife take time off work during Ken’s treatments and recovery. It gave life! ..and paid 58-times his deposit.
Lou had life-insurance in the family business that helped migrate the firm to new owners at 30% higher than “fair market value”. The insurance cost pennies compared to the grossed-up value of selling the business. (See more, page 65 ff, A Lifetime Of Wealth – And How Not To Lose It.”) Priceless!
Mary and Neil deposited $500,000 over time into an estate policy destined to clear $2Million of future taxes. Along the way, they also used the policy’s value to flip other properties and increase their wealth. As part of their wider financial strategies they have gained 400%, or more.
So why aren’t people using insurance to their full benefit?
- They hated paying for insurance.
- No one explained the value properly.
- Life is short – there wasn’t enough time!
- Fear of discussing illness, death, and taxes.
- Lack of comprehensive financial planning strategies.
- Didn’t foresee how such events hit families and businesses.
- Unaware how a family can become a statistic in financial risk.
- Employee and mortgage insurance covers a year or two.
- Decided to gamble for awhile, took a chance.
- Missed the Value of Life and Loved Ones.
Wherever you are today…
I hope you’ve learned something here that you can use. Most important is what you’ll do now to explore and fill any gap in your own plans. I’m serving primarily in southern Ontario, Canada. Wherever you are in the world make sure to reach an advisor who can serve you and your family with honesty, care, and integrity.
I also welcome you to reach me directly, even today, to discuss any aspect of what we’ve touched on here. If you’d like a brief series to keep this fresh over the next couple of weeks, click here to subscribe and get your FREE DOWNLOAD of my book “Protecting Life, Loved Ones, and Future Dreams.” (or hardcopy from Amazon, click here).
Here is your link to the series and Free E-Book: https://guaranteedincome4life.ca/insurance/
Life Insurance spells Freedom for our personal life dreams and our loved ones. It is a magnet for money when you need it most. It’s an asset class that brings new opportunities and heightened security to other investments you own. It secures value in your Business planning. It clears heavy obligations in your Estate planning. Life and health insurances help overcome life’s hazards and risks knowing the journey ahead will be rich and resourceful after all.
Brian Weatherdon, MA CFP CLU CPCA MDRT
905-637-3500 x 223 . Brian@SovereignWealth.ca
This article / blog is not an offer to sell or provide any form of financial, insurance, or other securities contract(s) but is intended as general information to help consider personal needs, and the resources at hand in one’s community to gain certified, licensed, registered assistance from those suitably and legally authorized to provide it. For further resource to consider and calculate personal life/health/estate insurance requirements refer to the opening chapters of “Protecting Life, Loved Ones, and Future Dreams” ….hard-copy at Amazon or local book stores, or free E-Book via https://guaranteedincome4life.ca/insurance/.
Freely share this letter whenever it can help a neighbour or friend, and ease the concerns of someone you know. Introduce us — we love to help.
Yours in Financial Security for LIFE!
Brian Weatherdon, MA, CFP, CLU, CPCA. 905-637-3500
627 Guelph Line, Burlington, Ont. L7R 3M7. 1-877-937-3500
Brian@SovereignWealth.ca
Author: A Lifetime Of Wealth — And How Not To Lose It (2013). Protecting Life, Loved Ones, and Future Dreams (2013). Your Business, Your Retirement: Halton Retirement Study (2015).
** This monthly letter touches on key strategies in Canadian and global investing and financial planning. This letter is not an offer to sell any kind of security, insurance, or program. Historical returns and risk measures are not a valid guide to future performance. Returns are from publicly available sources and research from a variety of firms including but not limited to GLC, RBC, CIBC, Mackenzie, Franklin Templeton. Opinions reflected in this letter belong solely to the author and no other body is responsible for the content expressed here. We value opportunity to consult alongside your legal and accounting firms to advance your financial security and unique goals. We are grateful always to receive your comments and questions.
Great comments Brian on the use of Life Insurance on Death as well as while still alive.
This is still so widely misunderstood.
Value of a financial plan with Life Insurance is priceless.