Continuity

Your old term insurance policies may be worth more than you thought!  Before you surrender an old term insurance policy that you no longer require, consider the underlying value that the policy may have if it were converted to a permanent policy.  A permanent insurance policy, even with no cash value, often has inherent value to it because of the insured’s age, health status, or the pricing on the policy.

Have a look at this Case Study, to see the value that can be created from a permanent insurance policy.  As always, please contact us if you would like to see how this could work for you!

Have a look at this article from the Financial Post from October 6, 2011, which discusses how the current low interest rate environment is driving up the cost of universal life insurance – making the time to buy NOW!

Financial Post – Buy Insurance Now

Want to increase your income in retirement, preserve your capital for the next generation, and possibly even decrease your corporate capital gains tax?  Then an annuity may be the solution for you!

Most people know about GICs and RRIFs, but it seems annuities are not as often discussed in the retirement income marketplace.  So let’s have a look at the basics.

The main characteristics of an annuity are:

• Guaranteed set payments for the life of the annuitant
• Higher annual income than traditional investments, as a portion of the payment is a return of capital
• Favorable tax consequences when receiving income payments as a large portion is considered return of capital and is therefore not taxable
• Loss of remaining capital amount upon death (can be resolved with corporate insured annuity)

There are a number of different ways an annuity can be set up, to best meet your retirement income needs, as well as achieving any legacy goals for your estate.

To get more details on how an annuity may fit your retirement goals, please have a look at the attached document which analyzes how an annuity could be put to work for a 70 year old.

Annuities – What Can They Do for You

Of course if you are interested to see how this could work for you, please give us a shout!