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

Protect Your Health- Take the Right Steps

It is no surprise that insurance coverage is determined based on one’s health. As such, it is important and beneficial for many reasons, not only including eligibility for insurance coverage, to improve and/or maintain one’s health. Engaging in health-promoting activities and practices can lead to enjoyment, fulfillment, mental and physical stimulation and overall, a more pleasant, healthier and positive lifestyle.

It is true that there are health conditions and illnesses that can occur randomly, at no fault and with no cause. However, there are several practices and activities that can be done to avoid or cope with mental and physical health conditions and illnesses.

The following are some tips/suggestions to protect your health:

Eat Healthy
●     Eat breakfast- A healthy  breakfast is energy-enhancing and metabolism boosting.
●     Eat healthy carbohydrates only - White, pasteurized carbohydrates turn into sugar once digested, and sugar intake is unhealthy. High sugar consumption can lead to conditions such as diabetes. Whole grains such as, oatmeal, barley, buckwheat, etc. are healthier choices.  
●     Control, Control, Control - Portion control is usually the number one weakness that most people struggle with. Give in to your cravings, but do it with control!
●     What to avoid- Any food high in cholesterol, trans-fat, sugar and sodium. Replace these foods with others that are high in protein and low in sugar, sodium and fat.
○     A few tips to lower cholesterol:
■     Avoid saturated fats, eat more fiber, start eating more fish (high in omega-3 fatty acids), switch to green tea instead of coffee, eat nuts
●     Stay Hydrated- Get into the habit of drinking lots of water! Water flushes your system, aids in weight management and curbs your hunger.

Live Healthy- Social Stimulation- Manage Stress
Managing stress is something that most people find challenging. Try to engage in some of these healthy practices to relax, recharge and stimulate yourself:
●     Make some quality time with your family and/or friends - call a friend, play a game!
●     Take some time to engage in your favourite hobbies (dancing, sports, bowling, etc)
●     Go for a walk
●     Take a long relaxing bath
●     Listen to music
●     Volunteer or get involved with a charity or your community
●     Watch a comedic movie
●     Read a good book
●     Catch up on sleep

Feel Healthy- Physical Wellness
Releasing endorphins or as they call it “happy hormones” increase your body’s pain tolerance and is known to heighten mood. Endorphins are released through exercise. Physical activity plays a crucial part in reducing and preventing stress. It also combats health conditions like heart conditions, blood pressure issues, stroke, etc. and helps aid in better sleep. Aim for 30 to 45 minutes of physical activity every day.

By engaging in health and well-being practices such as those listed above, one can help avoid mental and physical health issues and conditions. If you can avoid it, why not try to?

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

Disability Insurance Policies for Self-Employed Individuals: Are These Really Necessary?

Alas, one of the pros and cons of self-employment is the lack of insurance that would typically be offered by an employer. Since you are the boss and solely reliant on your own ability to provide an income, then you have to look at the financial consequences to your income if something were to happen to you. Granted, as an entrepreneur you already have enough to think about besides the “what ifs”, but truly it can destroy your business and your personal life in one foul swoop if you’re unprepared for something major that occurs.

Having disability insurance is the responsible thing to do, especially if your family is relying on your income to sustain them. If you are just embarking upon the life of an entrepreneur, this is certainly something to contemplate. Especially if you have been reliant upon a group plan through a company you have been working for, you will need protection to supplement your income in case you become hurt, injured or sick, or suddenly in need to take a leave of absence.

What is disability insurance for self-employed? Do you really need it?

Some entrepreneurs bravely “take the risk” by not carrying any insurance on their own wellbeing. They feel fit as a fiddle, so why pay for something that may just be a waste of money – especially at a time when every penny counts?

Disability insurance is something you pay monthly, just like car insurance or homeowners or renters insurance. Adopting this mindset is similar, because you probably wouldn’t want to take the risk of totaling your car without insurance or having your house burn down without insurance, so why take the risk of something happening to you, which is the most important out of all three? Auto insurance isn’t going to cover your lost wages if you are self-employed, at least not without getting attorneys involved.

It’s just a good idea to have disability insurance rather than going without. However, you must be in good health, so when you’re feeling good, it is the best time to get it. When you check into which policy is best, make sure you read through and discuss the provisions of what is or is not included within the benefits package. Go through every scenario that you can think of.

This the most common type of disability insurance for self-employed individuals:

Own occupation: Provides a total disability benefit if you are unable to practice your chosen profession due directly to injury or sickness, even if you begin working again in a new career.

With this type of disability insurance there will also be two optional riders you can choose, and one is the most obvious and common choice. With either of these disability insurance for self-employment choices there will also be two optional riders you can choose, and one is the most obvious and common choice.
You should have residual disability, which gives you partial benefits if you are still able to work, but only on a limited basis. Most claims fall under this category, so not getting this rider is really a waste to have disability insurance at all.

The second option is a rider that would allow you to increase your monthly benefits at any time, even if you experience a change in health. This one is a good protective measure to make sure you still get compensated even as your income increases – which it should every year – the longer you are in business.

Talk to your insurance rep about disability insurance for your business, even if you are a sole proprietor. No matter what type of industry you are in!

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

Biggest Insurance Myths: Are You Falling Prey?

The insurance industry is wrought with myths and misconceptions. Some people know that life insurance is important, but don’t really understand why, or at which point in the life cycle it should be acquired. Others don’t actually see the value in it at all and thus leave themselves or others in a financial dilemma when something unexpected happens.  Don’t fall prey to insurance myths. 

Here are the top three myths that far too many people buy into when it comes to life insurance. 

Myth #1: I am young, single, and don’t have any dependents – I don’t need life insurance. 

Reality: Even if you don’t have dependents, you likely have financial responsibilities, so what will happen to these if you are gone? Mortgage, car payments, loans, other personal debts – these will all need to be paid off, so who will these payments fall to? 

What about funeral coverage. Most of us, especially when young, don’t really want to think about funeral planning, but ignoring that fact that these are costly can leave your loved ones in a bind if some form of preparation is not done.  

With insurance, rates increase as you get older, so this is another reason that this myth is not accurate. Even if there are no dependents on the scene right now, things change. When they do, and you decide to finally get insurance, you will pay more. 

Myth #2: I'm better off investing my money than buying life insurance of any kind. 

Reality: Firstly, you need to identify the difference between investments and insurance before you jump to any conclusions, and keep the two separate. Investments involve risk, can include stocks, mutual funds or real estate, and the idea is that the risk will equal reward in the form of higher return. Insurance is primarily a policy that guarantees financial security to loved ones in the event of your death. 

When you invest, there is no guarantee that your money will grow or even remain stable, so banking on this can prove futile if you are not careful or take big risks. On the other hand, some insurance policies can be used as investments (whole life insurance for example) while still providing a guarantee that money will be there in the end if something happens.  

Myth #3: My term life insurance coverage at work is sufficient. 

Reality: Employee provided life insurance varies greatly, so it is critical, first of all, to review your policy and check the coverage limit. Some companies will provide adequate coverage, while others may only cover funeral expenses, thereby leaving all of your other financial responsibilities to your loved ones to take care of. 

Secondly, even if you feel as though your employee provided insurance is great, what happens if you leave the company or lose your job? Perhaps you feel stable in your current position, but you never know what could happen down the line and your coverage won’t follow you if you leave.  Additionally, if you leave at a later date and then search out coverage to supplement or replace a new employee provided policy, your rates will be higher (rates go up as we age). 

Insurance is a complex entity, and it can be easy to fall prey to the common misconceptions about it. Not knowing what type of policy you need or the amount of coverage can be easily remedied by talking with an insurance advisor, but avoiding insurance all together is a bad idea! 

For more about common insurance myths and how to avoid falling prey please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca.  

Factors that Impact Health and Life Insurance Coverage

When searching out insurance providers, it always helps to have some knowledge in your pocket. When you purchase life insurance, your premiums are based on a number of different factors, and when it comes to breaking down cost it can be really tough to get a real sense of why your rate is what it is. In an effort to help you navigate this confusion we thought we’d provide a breakdown of the most common factors that impact health and life insurance coverage. 

Age: The older you are, the more you will pay – this is just a fact of life, based simply on the fact that when you are young you are less likely to pass away. This is why it is important for younger individuals to purchase life insurance early.

Current Health: Some companies nowadays promise coverage without a medical exam, but others require it as a precursor to providing coverage. Why? This exam checks for any health concerns that may signal future problems (high blood pressure for example). Weight is also part of this – if you are overweight this may become problematic (if it isn’t already). Any negative aspects will lead to higher rates.

Gender: Gender equality is important, but when it comes to insurance your gender does play a role with regard to life expectancy. Typically, women live longer than men, and so women usually pay lower rates. 

Health and Family History: Any history of disease, chronic illness, or other potential health problems either in your own health history or your family health history, is perceived as a risk factor, and will thereby increase rates.

Smoking or Drinking Habits: It is a well-known fact that these can contribute to less than ideal health, so if you smoke or are a heavy drinker, expect to pay a little more.

Occupation: Again, it is all about risk here. If you skydive for a living your rates are likely going to be a bit higher than someone who sits behind a desk all day.

The Policy Itself: Every policy is different, and so it is important to know what you want and need as far as insurance, as well as how this will impact rates overall. Make sure you discuss all of your options, including the term, the amount of the death benefit, and the type of insurance, with your insurance advisor before you decide which policy is right for you.

An easy way to remember these things is by thinking about risk overall. An insurance company needs to evaluate risk and so if something seems risky, you are probably going to pay more.

For more about the factors that impact health and life insurance coverage please contact Independent Financial Concepts Group today by calling 1-416-849-1653 or visit www.wecoveryou.ca. 

Competition: Keeping Up With Insurance Industry Trends

Recent reports within the insurance industry have had a lot to say about the many changes taking place and their corresponding impacts. Competition is growing even fiercer as technology improves, and keeping up with these changes is critical. If you work with an MGA, it is imperative that there is a plan in place to counteract any revolutions within the industry. 

Here is our list of the top 3 insurance industry trends for 2013, what they mean for you and how to handle them. 

1.      Newest technology and programs. Advisors across Canada as constantly working to keep up with the newest technology and programs being released every month (and if they are not, chances are they are quickly falling behind the rest of the pack). Keeping up-to-date and up-to-speed can be tough, but if your MGA employs the newest programs and offers training to help you become efficient using them, you are already ahead of the game. Those managing general agents interested in their own success will provide this. Social media is also a part of this – don’t discount its power. Make sure that your MGA takes advantage of social media – you will benefit from a strong online presence.  

2.      Mobile and online quotes. Canadians are turning to their mobile devices far more frequently than in the past to complete everyday tasks – and this includes buying insurance. This creates some stiff competition, as well as increasing the need for rapid response (call-backs, processing of applications) and the ability to offer far more selection. As an advisor you need to be able to compete. Investing through insurance is becoming even more popular (i.e. segregated funds) so you need to make sure that you are able to offer a wide array of products – not just insurance. Social media plays a role here to – clients using mobile devices need to be able to find you. If they can’t that could mean a potential client lost.  

3.      Confidentiality in a digital world. Confidentiality has become a big problem in the insurance industry, even more so for independent advisors. Nowadays you have to be sure that client information is incredibly secure. If you work with a managing general agency make sure that they have technological programs in place to protect client information. Anything you take from a client has to remain secure within your system. If it doesn’t that could mean big losses and potential liability for both you and your MGA.

 

No matter what industry you work in, tech advances and industry changes can wreak havoc on traditional modes of conducting business. It is no different in the insurance industry, so be sure that you are keeping well-informed of these changes and implementing strategies to utilize and make the most of them. 

For more information about insurance industry trends and how they will impact you please contact Independent Financial Concepts Group at 905 202-8430.