Insurance Planning for Young Families

For young families, making sure your family is financially protected can be overwhelming, especially since there’s so much information floating online. This infographic addresses the importance of insurance- personal insurance.

The 4 areas of personal insurance a young family should take care of are:

  • Health

  • Disability

  • Critical Illness

  • Life

Health: We are so fortunate to live in Canada, where the healthcare system pays for basic healthcare services for Canadian citizens and permanent residents. However, not everything healthcare related is covered, in reality, 30% of our health costs* are paid for out of pocket or through private insurance such as prescription medication, dental, prescription glasses, physiotherapy, etc.. Moreover, if you travel outside of Canada, medical emergencies can be extremely expensive.

Disability: Most people spend money on protecting their home and car, but many overlook protecting their greatest asset: their ability to earn income. Unfortunately one in three people on average will be disabled for 90 days or more at least once before age 65. Disability insurance can provide you with a portion of your income if you were to become disabled and unable to earn an income.

Critical Illness: For a lot of us, the idea of experiencing a critical illness such as a heart attack, stroke or cancer can seem unlikely, but almost 3 in 4 (73%) working Canadians know someone who experience a serious illness. Sadly, this can have serious consequences on you and your family, with Critical Illness insurance, it provides a lump sum payment so you can focus on your recovery.

Life: For young families, if your loved ones depend on you for financial support, then life insurance is absolutely necessary, because it replaces your income, pay off your debts and provides peace of mind.

Talk to us about helping making sure you and your family are protected.

Guide to Covid-19: Government Relief Programs in Canada

The intention for our “Guide to Covid-19: Government Relief Programs in Canada” is to help businesses and individuals to cut through the noise and make sure they’re getting all the help they can receive from the federal and provincial programs.

Federal programs include:

  • Small Business Wage Subsidy

  • Canada Emergency Wage Subsidy

  • Canada Emergency Business Account

  • Canada Emergency Response Benefit

  • Student Loan Programs

Individual provincial programs include:

  • Utilities

  • Housing

  • Student Loan Programs

Financial Advice

An advisor can help you determine where you are today financially and where you want to go. An advisor can provide you guidance on how to reach your short, medium and long term financial goals.

Why work with a Financial Advisor? 

  • Worry less about money and gain control. 

  • Organize your finances. 

  • Prioritize your goals. 

  • Focus on the big picture. 

  • Save money to reach your goals.

What can a Financial Advisor help you with? 

Advisors can help you with accumulation and protection

Accumulation: 

  • Cash Management – Savings and Debt

  • Tax Planning

  • Investments

Protection: 

  • Insurance Planning

  • Health Insurance

  • Estate Planning

How do you start? 

  • Establish and define the financial advisor-client relationship.

  • Gather information about current financial situation and goals including lifestyle goals. 

  • Analyze and evaluate current financial status. 

  • Develop and present strategies and solutions to achieve goals. 

  • Implement recommendations. 

  • Monitor and review recommendations. Adjust if necessary. 

Next steps…

  • Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals. 

  • Feel confident in knowing you have a plan to get to your goals.

Happy Diwali!

Diwali, the Hindu festival of lights, is a four-day event celebrating good over evil, giving and forgiving, uniting and unifying. 

Our homes are decorated with ‘diyas’ which are small, clay lamps that are lit and represent bringing light and goodness into our homes, hence the festival of lights….

Our daughter, Zara, decorating ‘diyas’ to place in and outside of our home.

 

I’m so grateful that my family and I can share this celebration with you! 

Celebrating light, hope, and goodness around the world……

 

All our best,

The Tailor Family

Self Owned vs. Bank Owned Mortgage Insurance

Before buying insurance from your bank to cover your mortgage, understand the difference between self owned mortgage life insurance and bank owned life insurance. The key differences are ownership, premium, coverage, beneficiaries and portability.

Ownership:

  • Self: You own and control the policy.

  • Bank: The bank owns and controls the policy.

Premium:

  • Self: Your premiums are guaranteed at policy issue and discounts are available based on your health.

  • Bank: Premiums are not guaranteed and there are no discounts available based on your health.

Coverage:

  • Self: The coverage that you apply for remains the same.

  • Bank: The coverage is tied to your mortgage balance therefore it decreases as you pay down your mortgage but the premium stays the same.

Beneficiary:

  • Self: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

  • Bank: The bank is beneficiary and only pays off your mortgage.

Portability:

  • Self: Your policy stays with you regardless of your lender.

  • Bank: Your policy is tied to your lender and if you change, you may need to reapply for insurance.

We’ve created an infographic about the difference between personally owned life insurance vs. bank owned life insurance.

Talk to us, we can help.

Wills for young families

As any parent of young children will know, finding a spare minute can be a hard task and taking time to draw up an estate plan for the future is something that often falls to the bottom of the priority list. However, it is important for all families to have a basic estate plan in place to provide financial security for their children in unforeseen circumstances.

Below are some key areas to consider when creating such a plan:

  • Appoint guardians for your children

This is the most important reason for parents with young children drawing up an estate plan. Choosing who will raise your children if both parents were to pass away is such an important and personal decision – and one which should be made by the parents, rather than decided by the courts. Once decided, don’t forget to discuss your decision and ask the potential guardian if they would be willing.

You should also consider who is best placed to manage your children’s inheritance until they come of age. This is often the same person as the guardian but it can be somebody else of your choosing. As part of this, you could establish a trust for your children which is an effective way of managing their money and can also reduce costs.

  • Draw up a will and living will

The key function of a will is to set out how your assets should be distributed when you die. It is therefore one of the most important components of the estate planning process as it outlines your wishes and how your family will be taken care of.

A living will is also an important document to have, as it gives details of your preferences for end of life medical care in the event that you become incapacitated, rather than putting such responsibility upon your loved ones at a difficult time.

  • Decide upon an executor or trustee

When drawing up your will, you should detail the person who will be responsible for managing your estate when you pass away. The executor or trustee will carry out duties such as finalizing your financial affairs, distributing your assets as per your will, selling any properties etc.

  • Name your beneficiaries

Although your will is, in many ways, the most important document, it is important that you also clearly specify who you want your assets to be left to in your life insurance and retirement accounts, as these documents take precedence over what is detailed in your will. Note that, if you want to leave assets to minor children, you should name the trust rather than the child directly.

  • Review your life insurance needs

Ensuring that your family has the means to have a secure financial future after your death is a crucial part of estate planning. Put simply, you need life insurance if you have children who depend on you financially. Many parents find that term life insurance is surprisingly inexpensive if taken out early in life and can cover all sorts of costs, including funeral expenses, paying off debts and general living expenses for your family.

Finally, it is important to remember to review your estate plan regularly so that it reflects the changing nature of your family and personal circumstances over time. Many financial advisors suggest that at least once a year should be sufficient though, if your family has a major change such as divorce for example, you should review and amend your plans immediately.