When was the last time you looked at your work’s Group Benefits plan?

If you are an employee of a small, medium or large company, you are probably a part of a group benefits plan through your place of work. Many people seem to think they have proper insurance coverage through their workplace, only to find out they are severely underinsured at a time they need it the most.

Group benefit plans or group insurance plans are a great way for an employer to reward their employees and make sure they stay loyal to the company. It is a way of saying thank you and to help provide the employee with additional benefits that go beyond the classic paycheck or bonus.

When it comes to the life insurance and disability insurance components, many employees are not well versed with their local group benefit plans which in most cases contains very limited amounts of insurance. Because there is no medical underwriting required for group members to be insured, the maximum insurance amounts are often fairly low as the insurance company can't offer large amounts without individually underwriting the members.

Its extremely important to check your group insurance policy and understand what type of insurance coverage you are eligible for. Some group insurance plans offer an “top-up” where employees can individually apply for additional insurance although in most cases that will require the employee to go through underwriting which in some cases (depending on the amount) may require a full medical exam.

Another important factor to consider when thinking about your group insurance plan is the fact that it only covers you while you are actively employed with your company. This factor is extremely important to consider when going through your finances and insurance planning. If you are between jobs and something happens to you, you will not be eligible for any coverage.

Group insurance should always be considered as an extra benefit and not as a solid part of your insurance planning. As you are going through your financial and insurance plan, make sure to keep your group insurance plan out of your overall insurance coverage.

The best way to make sure you are properly covered is by going through a proper needs analysis with a licensed insurance advisor and purchase a personally owned insurance policy that will stay in effect regardless of your employment status.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca

Insurance is just another part of responsible financial planning

We get it… Insurance is not the best subject to bring up on your next dinner party.. although it is a crucial part of any financial plan. Proper insurance planning can help you, your family and your business in places where traditional assets cannot.

Most people start thinking about Insurance when they have their first child, get married, start a business partnership etc. Some people start thinking about insurance when they experience a life altering event or witness a loved one or a friend go through a tragedy. The problem for a lot of people is with the fact that Insurance is an intangible. Unlike a new car, a new watch or a new pool, Insurance is not something you’ll benefit from in the immediate term. Sometimes you might not benefit from it at all, but your beneficiaries will.

Public perception about Insurance needs to be looked at as an integral part of your family or business financial plan. When sitting down with your advisor its important to discuss and plan for life’s unseen circumstances. Life is full of surprises and sometimes not so positive surprises. A responsible individual needs to take these life events into consideration as a part of their financial discussion. You do not want to be short of money or resources if god forbid you were to deal with a life altering event.

Business owners need to factor in the possibility of losing their business partner and making sure that the business continues to function without interruption. Insurance policies that protect the partners can save the business in the event of losing one of the owners. If you’re in a business partnership you should make sure you and your partner have taken the proper measures to take care of the continuity of your business by looking at a Buy-Sell Insurance and Key-Man Insurance.

Wealthy individuals have been using Insurance for decades to make sure their estate is properly protected and transitioned to their beneficiaries in an efficient manner. Insurance can be a great tool in the process of Estate Planning and Wealth preservation.

Granted there are many types of Insurance policies out there that are aimed to solve different scenarios. Have a conversation with your Insurance Advisor today and learn how you, your partners and your loved ones can protect yourselves and actually benefit from having proper Insurance setup.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca. 

Tips to keep you healthy

A medical exam is the main component in deciding what your insurance cost will be. In order to keep your insurance premiums low, you want to be as healthy as you can possibly be. Here are some tips to keep you healthy and feeling good.

1. Quit smoking! Smokers can pay up to double on their life insurance policies compared to non-smokers. If you need life insurance it really is the time to quit. Many policies define a non-smoker as someone who hasn’t smoked for 12 consecutive months and that includes nicotine replacements and e-cigarettes.

2. Feel good about yourself today. Surround yourself with people who bring out the best in you and make you feel good. If close friends encourage you to smoke, drink or overeat it may be time to surround yourself with people who motivate you in the right way. Don’t get hung up on how many pounds or what size pants you are wearing. Focus on being healthy and not thin.

3. Be physically active for 30 minutes once a day. If your schedule is too busy see if you can find ways to put physical activity into your life. For example, if you take the elevator everyday change it up and take the stairs. Physically active people save $500 a year in healthcare costs.

4. Always eat breakfast- Breakfast is the most important meal of the day. Many avoid it in hopes that by skipping this meal they have a lower calorie intake for the day. This actually defeats the purpose. By skipping breakfast you are in turn slowing down your metabolism which leads to weight gain. Several studies suggest that people tend to add more body fat when they eat fewer, larger meals than when they eat the same number of calories in smaller, more frequent meals.

5. Mental health matters too- How you feel on the inside is extremely important. Your thoughts manifest yourself into everyday life so how you feel begins with your thoughts. Remember to stay grateful for what you have and always look for the silver lining. Accept the things you cannot change and always acknowledge and express your feelings.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca

Teaching your kids Money Management

When it comes to kids and money management there are plenty of different theories on what is the best way to educate your child so they become more responsible with their money now and in the future. Many parents struggle with explaining the value of money to their children, having to face that subject later in their children’s adult life. Teaching your kids early about the value of money and how to spend it can help your child later in life as they become adults and have to manage their own finances. Here are 3 points to consider when educating your child about money management:

1. The difference between a “Need” and a “Want”: “but Mom! i need that!!” How many times have your heard that sentence from your child’s mouth? Many children simply fail to understand the difference between needing something and wanting something. Granted, the child is not to blame for not understanding the difference. In a world where children compare themselves to their friends and surrounding environment, its very hard for your child to make that distinction. Make a point to explain to your child about life’s necessities and what fits your personal definition of a “Need” vs a “Want” (your personal definition might be different from your neighbours definition and its important you help your child define that).

2. Cover all aspects of money management - When teaching kids about money, remember to cover all aspects, including saving, bills, etc. Try and get your child more involved in the day to day money management activities of your household. Make it fun for them and get them to help you with simple actions like paying bills online, understanding your statements, etc. A great way to get your child involved is to open a bank account for them, start giving them allowance, and reward them financially for certain activities (good grades in school, helping you out on a house project). Kids lose interest quickly, thats why its important to make it fun and keep them involved and engaged. Take your child to the bank and let them deposit money using the ATM. Print out an activity report and go over it with them.

3. Understand the concept of Debt - Children are rarely exposed to the difference of debt vs credit. Its important to educate your child on understanding the impact of debt so that they have better tools to deal with it in their adult life. Try and make it fun by creating some sort of a game that will help them understand the concept of owing money and not being able to purchase something until that debt is erased. Once the child understands the concept of debt, you can start introducing them to the concept of credit.

Helping your child grasp these basic concepts of money management at an early age will sure to be helpful as your child grows to be an adult. Money management is an extremely important skill to teach your child and the earlier you do it the better.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca

6 Tips to help you save on Life Insurance

Purchasing life insurance is an integral part of financial planning. For most people, the need for life insurance arises when there is a need to protect an asset of a loved one. Here are 7 tips that can help you save money on your life insurance policy:

1. Apply young - The younger you are the less you’ll pay

Applying for life insurance at an early age allows you to lock in a rate based on your current age and since insurance companies are all about managing risk, the younger you are the cheaper your rate will be.

2. Quit smoking

Smokers generally pay double on their life insurance then non-smokers. Most policies define a non-smoker as someone who hasn't smoked for 12 consecutive months. If you know you need life insurance, it might be a good time to quit.

3. Clean driving record

As mentioned earlier, insurance companies are all about managing risks. One of the things insurance companies take into consideration during the underwriting process is your driving record. Having a history of speeding tickets and other traffic related offences might play against you when applying for standard rates. Try and keep a clean driving record.

4. Consider paying Annually then paying monthly

Most insurance companies on the market will provide consumers with a slight discount on premiums when paying annually versus monthly. If your financial situation allows it, it will most likely be beneficial for you to pay annually and save money. Many consumers also like the fact they don't have to think about the monthly payment and prefer to cut a cheque every year.

5. Keep a healthy lifestyle

Insurance companies pay close attention to your weight and overall lifestyle. In certain cases you might even be eligible for a better rate then the one you applied for if you’re in great shape. People who exercise regularly and maintain a healthy lifestyle will most likely perform better on their medical exam which is a major component in the underwriting process.

6.  Seek the help of a Financial Advisor

Choosing the right insurance policy for you is not a simple task. The decision to move forward with Life Insurance relies heavily on your health status, your budget and your objective with purchasing life insurance. Working with a licensed Insurance Advisor can help you find the right policy for you based on your subjective needs and objectives. Thier job is to help you figure out the right amount you need to protect yourself and your loved ones and match that with a proper life insurance policy.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca.

What Financial Impact Could Death Have On Your Family?

The loss of a family member is a hard thing to go through. It gets even harder when that person was a parent/provider to other family members. On top of the emotional factor, family members have to deal with the financial consequences of funeral costs, replacing lost income, legal fees, estate fees etc.

We get it – no one likes to think about their own mortality, but when we have others depending on us, it is no longer an emotional discussion – it becomes a financial discussion. If you are a parent supporting their children and/or spouse, or helping your parents or other family members by supporting them financially, you should look into your existing life insurance coverage and do the right thing by planning ahead.

Here are a few questions to ask yourself as you’re going through this exercise:

1. How much personally owned life insurance do i currently have?

2. How much life insurance coverage does my employer group plan provides (dont count on it, treat it as extra).

3. What is my magic number? what amount of coverage is the right amount for me based on my assets and liabilities?

4. What are the immediate financial consequences and long term financial consequences my family members will have to deal with after my death.

5. Do I really know what I currently have in terms of life insurance coverage?

6. Does my spouse know about all my assets, bank accounts?

7. Do I have a will? and if so, has it recently been updated?

As you and your spouse or dependents are going through this exercise, try and write everything down and carefully document the answers as well as let them know where and how to gain access to this important information.

If you’re having trouble doing the math, or looking at the options, it is always recommended to consult a Financial Advisor who can help you with the math as well as come up with solutions from the various companies. It’s always recommended to shop around before making a decision in terms of which Insurance company or policy to go with based on your needs. Ask all the questions, make sure your spouse and dependents understand your coverage and can access it in time of need.

Remember: Insurance planning is an important part of your overall financial planning and taking care of your loved ones.

For more information on how to be prepared please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca.

The 3 Major Rules For Managing Your Money The Right Way

When it comes to money management, there are plenty of people who have a hard time figuring out how to Save more than Spend. It may sound simple, but many people are in debt not because they don’t make enough money, rather because of the mismanagement of their money.

Analyze your current Finances

The first step begins with knowing exactly how much money you make and what your overhead looks like. Sit down with a pencil and a calculator and write down all of your expenses. Start with the biggest ones first, such as your rent or mortgage, car payment, and all of your utilities such as electricity, water, oil or gas. Don’t forget your insurances, such as auto, life, health or any other types and then include your typical weekly food bills. Do you spend money on clothing and leisure activities? Those items must also be part of the tally. Once you have added all of your expenses, you’ll you need to find the monthly average of your income.

Staying on Track with Your Family Budget  
Next, it's time to subtract your monthly income from your expenses. The leftover money from your expenses should now be slashed in half and stashed away in a savings account. Try to do this every single month to save for contingencies. Unexpected car repairs, home repairs or family emergencies should not come out of your main supply that is needed for bills; therefore having the savings account will help you to stay on track.
Another big element required in proper money management is based upon your understanding on how and when to borrow money. The first thing you must do when borrowing money is assess the interest rate. When it comes time to look at your loan payments/line of credit, are you going to be overstretched? A lot of people get antsy or impatient and go for the first lender that is willing to say yes. This often leads to high interest rates and ballooned payments.  You should only take a loan out if it’s absolutely necessary. Make sure you have a clean game plan to pay back the loan. And even then, ask yourself if the thing you want is truly a need or a want? Don’t live beyond your means, and make sure you are getting the lowest interest rate available.

Pad Your Savings by Investing
When it comes to managing your money the right way, you should also consider investing some of it. There are so many ways to do this, and you will need to properly research the marketplace to determine what types of investments make the most sense for you. Some might prefer the stock market, while others might try real estate or insurance. Having a mentor to help you invest can lead you down a successful track and help you increase your profit margins. Once you have found the right investing solutions for you, it is imperative that you do so it on a regular basis. Not only will investing money correctly be very profitable, but it will also give you more discipline and responsibility. Take the time to set up investment plan every 6 months and you will develop good money management habits.
If you feel uncomfortable in researching yourself, make a point to discuss this with your financial advisor and get them to help you with finding the right investment tool based on your risk adversity.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca