The Danger of Denial in Wills and Insurance Planning

wills and insurance planning

Mark Twain once said “Denial ain’t just a river in Egypt.” He was not in denial regarding his eventual death as he had a valid will assuring his daughters would be well taken care of! We are in denial in regards to wills and insurance planning. For example: 60% of Canadians die without a will, […]

Your Most Valuable Investment – Human Capital

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I had the privilege of speaking to a Grade 12 Economics class a few years ago and the experience affirmed my hope for the future. Judging by the depth of their questions, I know they will go far. My talk centred on the $50 trillion dollars in the equity markets of the world. I was […]

Understanding Long Term Care Coverage

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I easily get wrapped up in our work and need a reality check. Nick Murray, a known voice among financial advisors, gave the keynote address.  Most notably, he focused on two key goals that seniors face: dignity and independence. These two goals must guide our retirement planning even before discussing investments, estate planning and insurance. More […]

Insurance Planning and the Golden Goose

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Remember Aesop’s fable of “The Goose Who Laid the Golden Eggs?” The greedy owner couldn’t wait for the goose to lay the next egg. He killed the goose, thinking he’d get all the gold up front. His eggs went runny! A smarter farmer would have taken proper care of his champion goose. He would have […]

Crash Test Your Mortgage Life Insurance

Mortgage life insurance planning

Thousands of crash test dummies have been sacrificed for our driving safety and I’m grateful every time I drive! We also need to crash test your financial plan against the catastrophe caused by disability, critical illness and death. This includes properly structuring your mortgage life insurance. The risks are very real. Here are numbers for […]

Beneficiary Designations – Dangers and Benefits

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Like many teenage boys, I loved Shop class! After years watching my father use power tools, I was finally going to learn to use them myself! It wasn’t as easy as that though. We spent many hours studying their features, benefits and dangers. Finally, we were able to use them safely, always under the watchful […]

Mortgage Life Insurance’s Perfect Storm

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You may not actually have full coverage when you buy mortgage life insurance from your bank. Wait… What?  There bank clerks who offer you mortgage life insurance are usually not licensed to give you insurance advice. The only advice you receive is in the form of a brochure. You are not offered much time to […]

Protect Your Family from a Monster Mortgage!

RBC has published their Housing Affordability Measure since 1985. It reflects the costs of owning a detached bungalow at market value. The higher the measure, the less affordable a home is. As an example, a measure of 32 per cent means that home ownership costs consume 32 per cent of a typical household’s pre-tax income. […]

7 Things the Banks Don’t Tell You About Mortgage Protection Life Insurance

Mortgage Protection Life insurance is presented as part of the mortgage signing process with an implication that it forms part of the package. If you don’t apply for it, you must sign a statement declining the coverage and take on the responsibility of getting the coverage on your own. That’s way too much pressure and […]

Life Insurance Rewards Good Health

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Over 30 years ago, insurance companies came to the blinding realization that non-smokers live longer than smokers. Non-smokers welcomed this revelation, especially when they found they could save piles of money in insurance costs. A few decades later, we experienced further improvements through “Preferred Class Underwriting.” We started asking questions like “If I exercise regularly, don’t drink too much […]

Negotiate Your Term Insurance Renewal

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Many of us go through this drill! We buy a term insurance policy that increases at a certain rate every 5, 10, 20 years or so. In our optimism, we ignore the impact of those increasing premiums. However, those years tend to pass by very quickly. Suddenly, we are faced with a doubling of our […]

Life Insurance Lessons from Costco

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Buying life insurance is similar to the strategy used by Costco: you save by buying all elements of your coverage at one place instead of paying admin costs at numerous providers.

Life Insurance is a Bad Investment!

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If you do not have a need for life insurance and are holding it purely as a savings plan, you are still paying for the cost of the insurance portion of the package, and it is probably more expensive than other more sensible options.

Plenty of Life Insurance Options

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With many insurance providers and each offering different products and classifications, the possibilities can be confusing. Here’s a better way to choose life insurance.

Death and Estate Taxes

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Some life insurance companies preach the “theory of diminishing needs” for life insurance. It says that we will become self-insured by paying down debt, accumulating investment assets and reducing expenses. I once believed this theory. However, I have experienced otherwise. Life happens. As a result, needs for life insurance coverage often continue longer than we […]

Will a broken smartphone destroy your future?

The last time you bought a car, home appliance or electronic item, what add-on does the salesperson usually ask you to buy? Of course – the extended warranty. Most salespeople seem puzzled whenever I steadfastly refuse to buy the extended warranty. My answer is quite simple: “I only insure against catastrophic losses.” If my smartphone breaks down right after […]

Insurance Planning is Like Using Power Tools!

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Having grown up in an age of real fireplaces and having done some old-school camping, I also helped gather firewood. I then patiently watched my dad quickly buck it into lengths using his chainsaw. Until I learned how to use it, it scared me! A chainsaw is a powerful, useful tool but dangerous in careless, […]