Life insurance can save you
Common Cents
Ivan Cons
Most of us think of life insurance as a product primarily used to protect families with young children. No doubt this is true. However, life insurance has also become a valuable commodity when used for estate planning.
Many seniors purchase a joint and last survivor policy, the goal of which is to provide the cash necessary to pay both levels of government to cover capital gains on real estate or investment portfolios. It can also be used to protect the value of RRIFs, which are ravaged by taxation once both spouses are deceased.
Make no mistake about it: failure to plan well can lead to significant loss in estate value for your children and grandchildren. We spend a good deal of our lives trying to limit the amount of taxes we pay, yet many of us disregard the impact of death on taxation. These issues can be easily addressed and are not complicated.
Many seniors still have mortgages on their properties or have been forced to re-mortgage for financial reasons. Banks try to encourage the purchase of mortgage insurance to limit liabilities. The idea is sound, but one is much better off securing this insurance through a broker, for several reasons.
Mortgage insurance taken with a broker rather than a bank stays in force beyond the age of 70. You own the policy.
In this case, you do not need to reapply every time you change banks and the death benefit never decreases and you name the beneficiary of your choice.
There are many other applications for life insurance, but the first and most important step is to clearly review your insurance situation and apply the right strategies.
Contact Ivan Cons at: info@imcfinancial.ca
