Whole Life Insurance Explained

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What Is Whole Life Insurance Whole life insurance is a type of permanent life insurance that provides coverage throughout the lifetime of the life insured. It offers protection and equity, guaranteeing that you will never lose your death benefit (unless canceled) and allowing you to build tax-deferred wealth (participating) over time. A participating whole life insurance policy provides the insured an opportunity to save for retirement or even to become his or her own banker through the infinite banking concept. This type of policy is also known as “traditional” life insurance. Whole life policies are different from term policies in that they provide permanent coverage for the insured’s entire lifetime, not just temporary death benefits. Premiums paid on a whole life policy may build cash value that will grow tax-deferred within the policy through the guaranteed CSV and policy dividends accumulation. In almost a decade of practice, what I’ve observed is that one of the main problems senior Canadians encounter is the risk of losing coverage at an old age since most Canadians are only covered with a term life insurance policy. While it’s good to have term life insurance in the early years for temporary financial obligations, it’s also smart to implement permanent life insurance for one’s permanent financial obligations such as one’s own final expenses (funeral and taxes at death). I’m glad that you’re doing your research on whole life insurance since many Canadians are under the impression that they no longer need their life insurance policy in …

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Foresters Life Insurance Canada Review

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Foresters Financial is an international fraternal organization dedicated to making life insurance available and affordable for its members. The Independent Order of Foresters provides a full range of term, permanent, and final expense life insurance policies. It distinguishes itself with its large selection of riders and extras, such as financial coaching and legal assistance. Types of Insurance Policies Foresters Offer Foresters Life Insurance of Canada offers a variety of life insurance products, including term life insurance and permanent life insurance. Term life insurance works well for those who have a temporary need for coverage, whereas permanent life insurance is great for those who seeking to have an insurance policy for life, with no premium increases. Foresters Whole Life Insurance Policies Whole life insurance is a policy that provides lifelong protection. This type of policy has premiums that stay level and won’t change as you age, you can pay it off in 20-years, or throughout your lifetime. A whole life insurance policy is implemented to cover permanent financial obligations that will only go away when the person passes away. Foresters offer both participating and non-participating types of whole policies. Participating Vs. Non-Participating Whole Life A Participating whole life insurance policy allows your policy to earn dividends. Depending on the selected dividend option, you may receive the dividends as cash payments, as a premium reduction, saved as part of your cash surrender value, or used to buy additional coverage. In general, dividends are a portion of the insurer’s profits that the company …

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Is One Million Dollars Enough to Retire in Canada?

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Is one million dollars enough to retire in Canada?

The short answer to this question is, of course, a resounding “yes”, but it may not be the kind of retirement that you’re thinking.

Whether or not one million dollars is enough to retire in Canada all depends on your lifestyle, spending habits, and health at retirement.

One million dollars is a huge chunk of money to retire on but in contrast, it isn’t as big of an amount as most Canadians would think.

While not all Canadians have a million dollars of a retirement portfolio, it isn’t something that you could afford to live a lavish lifestyle from. Well, at least if you plan to make it last throughout your lifetime.

When properly managed, a million bucks can provide you with $40,000 per year or around $3,000.00 a month of retirement income. That’s without considering any other income sources like government and/or company pensions (if any).

If not further invested, and at a withdrawal rate of $40,000.00 a year, a million bucks of retirement fund will last you 25-years. So if you’re looking to retire at 65 years old a million dollars, your money should last you until age your tender age of 85, the obvious risk here, of course, is the potential outliving your funds, in case you withdraw too much on a yearly basis.

How to Apply for a Mortgage Online in Canada

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Are you looking to apply for a mortgage online?

With technological advancement, it’s never been easier to apply for and get approved for a mortgage right from your home, and without the need for a face-to-face meeting.

Some things you need to prepare before applying for a mortgage online, are as follows:

– A reputable credit score, and

– Proof of income

What is Permanent Life Insurance and How Does it Work

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Permanent life insurance is a type of life insurance that provides lifetime financial protection to your beneficiaries.

This means that the life insurance you buy is in effect for the rest of your life as long as you pay your premiums or the policy is considered “paid-up”.

In other words, there’s no expiry date on this policy. This is what makes life insurance “permanent”.

When you eventually pass away at any point in your lifetime, your permanent life insurance makes the death benefit payment to your beneficiaries.

Depending on how it’s designed, the death benefit either remains constant or increases over time, while premiums typically remain level.

How to Survive a Layoff?

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A layoff is a traumatic experience. I experienced it first hand, 9 years ago, roughly a year after migrating to Canada.

In the Philippines, there’s no such a thing as lay off, well at least before the pandemic hit. I was never laid off from a job before. Like most people experiencing this surprising event, my initial reaction was to panic. Realizing that I could qualify for Employment Insurance (EI), I panicked less but I needed to come up with a plan fast!

Losing a job means losing your income source, and you have to be quick to get another one to maintain your household’s financial security.

In Canada, being laid off is just part of the game, yes, even after your probation period. If the company you work for experiences some difficulties, the lower-ranked employees are always the first ones to go.

How to Open a Self Directed TFSA

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This article aims to answer the frequently asked question from new self-directed investors:

How to open a self-directed TFSA?

Generally, there are two options you can consider when opening up a TFSA, one is through an independent broker, and the other, through a financial institution, like banks and credit unions.

Self-directed TFSA is a different breed, this is aimed at those who would like to take matters into their own hands, manage their own funds, and save on management fees on the process.

Opening a self-directed TFSA is simple, and quite straightforward. All you have to do is visit an online brokerage website, like QuesTrade,  and sign up for an account.

Once your account is approved, simply select TFSA as your account type, and you’re off to the races.

Is Life Insurance Worth It for a Single Person in Canada?

is life insurance worth it for a single person canada

One of the many questions we get asked as independent financial advisors in Canada:

“Is life insurance worth it for a single person?”

Now, this one is somewhat of an open-ended question since it depends on the person’s specific situation. Some people asking this question are those who are in their 20s, who are single for now but may have a family in the future, while some are middle-aged individuals who are in their mid-30s and 40s, who may remain single.

In my point of view, as a financial security advisor, life insurance is of vital importance if you have loved ones who may experience some sort of financial inconvenience as a result of your passing. They may be dependent on you financially,  or they may be responsible for paying your final costs such as internment, taxes at death (if any), etc.

Life insurance is a powerful financial risk management plan that protects our loved ones from the potential financial impact of our death.

Health Benefits for Self-employed in Canada

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As a self-employed business owner or a full-time freelancer, you get to enjoy a lot of perks that are otherwise not available when you’re working for someone else. You get to choose how many hours you work, whom you work with, and when.

These and many more are benefits of self-employment in Canada.

What I like most about working for myself is time flexibility, of course, in no way whatsoever an indication that I work less. In fact, I work long hours for my business compared to when I was working a regular job, and if you’ve been self-employed for a little while, I know you can relate.
With all its perks, choosing the self-employment path, however, comes with its share of challenges.

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