Income for Retirement: Keeping the Dreams Within Reach

No matter what stage of your life you are at, whether it be just starting out, settling into your dream career, or on the verge of retirement, you need to make sure that your financial planning ensures your income for retirement. Not only should you be asking “how much money do I need to retire,” but also, “how can I save that money?” It is always smart to be ready for anything. 

With proper retirement planning, you can be sure that your income for retirement will allow you to relax and enjoy your time off. Whether you are planning to take that relaxing cruise down the Mediterranean every February, stopping off in Monte Carlo for a few nights, or just want to be sure that you can provide for your family while still keeping up your regular social life around town, you have to make sure that the funds necessary to maintain these lifestyles are available.

In order to answer the question how much money do I need to retire, there are many things to consider when you start planning your income for retirement. Your age, any dependents, and what kind of lifestyle you want to have are all factors that will influence the amount of money you put away each month or the types of strategies you adopt in order to secure income for retirement.

One of the smartest ways to ensure your income for retirement is through an annuity. By purchasing an annuity, you are basically securing guaranteed income on retirement. How? By making set monthly payments, you are guaranteed a lump sum payout when you retire. This means that you are continually putting away extra money each month, and once you can finally give up that day job you have access to those funds to use whichever way you want – whether it be the Italian Coast or your own backyard.

In answer to how much money do I need to retire, let us say this: everyone is different, but the choices that you make during your retirement planning will greatly impact your ability to relax during retirement and ensure that you have access to the funds that will allow you to keep doing what you enjoy. 

Are you asking yourself how much money do I need to retire? Solve the riddle that so many struggle with the easy way – speak to your insurance broker about guaranteed income on retirement annuities.

Take a look outside. Chances are this is not the type of weather that you will always want to enjoy over the long Canadian winter months. Keep those dreams of yearly snowbird trips alive by planning smart for your income for retirement.

For more information on how to answer the question “how much money do I need to retire,” or to start planning your income for retirement, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

What is Mortgage Life Insurance?

When you are purchasing a home, there are many different things that need to be considered – most of which are very important.  Protecting yourself and your family is crucial for the future. One of the things that you absolutely need to think about is mortgage life insurance – but what is mortgage life insurance?

When you purchase a home, often one of the first things that you will have to think about is how to protect your mortgage. There are many different types of mortgage life insurance out there that will protect you or your loved ones in the event that someone passes away.

So, what is mortgage life insurance? Mortgage life insurance is sold by different types of companies. Many times your bank (or the insurance division of your bank) will offer you mortgage life insurance when they offer you mortgage financing or will market these products to you once you are a client.

This is sometimes referred to as mortgage life insurance, mortgage protection insurance or mortgage insurance. It is important to know that there are key differences when it comes to obtaining mortgage insurance through the lender who holds your mortgage vs. seeking out the insurance yourself, through a trusted insurance broker.

Let’s look at some of the key differences:

When will the policy be underwritten? When you obtain mortgage life insurance through a good insurance broker, the policy will be underwritten at the time that you obtain the insurance. This means that you will have to complete an in-depth medical questionnaire. This ensures that if something does happen in the future that the insurance company will have difficulty getting out of paying your claim. When you take out insurance through your mortgage lender, in most cases your policy is not underwritten until something happens. When you obtain the insurance, very little information will be asked of you, but in the future if you end up having to claim, the insurance company will ask questions then and will raise reasons to deny your claim.

Who does the policy protect? When you obtain mortgage life insurance through an insurance broker they represent you, not your mortgage lender. When you arrange your mortgage life insurance through your mortgage lender they will list themselves as the beneficiary on your policy. Your insurance broker will provide you with the option of listing your loved ones, allowing your loved ones to determine how the proceeds of your mortgage life insurance will be distributed.

How much coverage will I have? In many cases, when your mortgage lender arranges your insurance, your policy will state that the balance of your mortgage will be paid off upon death. While your monthly mortgage life insurance premiums will stay the same for the life of the mortgage, over time your mortgage balance will decrease as will the amount that will have to be paid out on a claim in the event that there is a death. For example, say you have a mortgage for $200,000 and your mortgage life insurance payment is $22 per/mo. 5 Years into your mortgage your balance is $170,000, your spouse passes away, the insurance company will pay your bank the $170,000. When you obtain mortgage life insurance through your insurance broker, the face value of the policy will remain the same for the duration of your policy term.  So, if you have a mortgage for $200,000, you arrange mortgage life insurance in the amount of your mortgage and your mortgage life insurance payment is $22 per/mo. 5 years into your mortgage your balance is $170,000, your spouse passes away, the insurance company will pay you the full $200,000.

What happens when you renew? As you know, your mortgage is likely to renew every 1 to 5 years. Every time you refinance your home, if you have obtained mortgage life insurance through your mortgage lender, you will be quoted on a new policy. This could change your rates exponentially because, as we age, insurance becomes more expensive. When your mortgage life insurance term policy is arranged through a mortgage broker it doesn’t matter if you sell, buy another property, or refinance, because your mortgage life insurance is not directly tied to your mortgage.

If you have just purchased a home or are thinking about getting insurance to protect your mortgage, mortgage life insurance arranged through a trusted insurance broker who deals with all of the life insurance companies is the way to go. Don’t get sucked into the convenience of obtaining life insurance through your mortgage lender without first knowing all about it. Instead, consider a mortgage life insurance policy that truly protects you and your family.

For more information about mortgage life insurance, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Working with a Managing General Agency Lets You Make the Client the Top Priority – Not the Insurance Company!

When you work as an insurance agent for an insurance company, you know that your hands are often tied as far as being able to offer the best services at the best rates. Getting the best deals offered by other insurance companies is obviously not in your best interest. However, this can often negatively affect the relationship you have with your client. Keeping the customer happy needs to be the top priority for an insurance agent.

If you feel like this is the position which you are currently in but have no choice as far as bettering the situation – switching to a Managing General Agency is a perfect solution to help you get the most from your career and keep your customers happy. Remaining independent while still working within an encouraging and motivating atmosphere, while still having access to the support and assistance you require to be the most effective as an advisor, is not possible while working for an insurance company – but is easily achievable if you are working with a Managing General Agency.

20 years ago, most clients would have been completely reliant on the word of an insurance company with regard to prices and services available. Unless they knew someone in the insurance industry, they would have had very little recourse for alternative sources of information. However, with the internet, the wealth of information available to all has seriously impacted the ability of insurance companies to claim that they are offering the best deals if there are others out there. Now it is necessary to cater to their needs in order to attract and retain your customers – which is ultimately your end goal! This needs to be kept in mind when considering how you can attract and maintain a strong client base.

When a customer comes to you as an agent for an insurance company, you can’t offer any of those deals they know are out there – and they may choose to take their business elsewhere. If you are working with a Managing General Agency, there is far less risk that you will lose that client, as you now have the ability to search for the best deal at the best rates from a much larger portfolio. Working with many different insurance companies takes the power from them and puts it in your hands – where it should be in order to allow you to make the customer the top priority!

When you ask yourself who is more important – the client or the insurance company – the answer should always be the client. In order to get the most out of your career as an insurance agent and reap the most rewards, letting an insurance company dictate the direction your career will take is unwise. Working with a Managing General Agency allows you to remain independent while still working with multiple insurance companies and allowing you to keep the customer at number one.

If you want more information about working with a Managing General Agency and how it benefits your career to switch, please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.joinifcg.com

Working with a Managing General Agency - How to Retain Control of your Clients and Work in their Best Interests

If you are an insurance agent who works for an insurance company, you may often feel as though you are restrained in your ability to get the most from your relationship with your clients and to provide them with the best service possible. Being tied to one company often means that you are forced to give up your independence as far as your ability to do your best for your clients. If you are thinking about trying to end this often one-sided relationship, it may be time to start thinking about working with a Managing General Agency.

There are many benefits to working with a Managing General Agency. One of the most important is being able to be an independent broker while still reaping all of the benefits of working with a company that offers the support that helps you provide the best service to your clients. By joining a Managing General Agency, you get this!

Customer service is key. In order to be able to provide the best service to your clients, you should not be shackled to one insurance company. Relying on being able to only provide their services greatly limits your ability to present the best deal and keep your customers happy. By tapping into the available services of a Managing General Agency, you have the power to offer a greater number of services to your clients and at the best rate.

Being told versus being in the know. What kinds of learning opportunities are provided by an insurance company? Are they ones that teach the best customer service techniques in the industry, or are they ones that cater to the needs of that insurance company alone? Most likely the later! Working with a Managing General Agency allows you to get the latest knowledge in the industry, thus increasing your ability to provide the most effective customer service to your clients.

Who owns the client – you or the insurance company? One of the most notable downsides to working for an insurance company is the control that is lost by the agent with regard to their clients. If you are an independent advisor working with a Managing General Agency, you are the one with the power. By working with different insurance companies, you take the power from their hands and keep it within your own. Don’t let the insurance company run the show.

Another important consideration – how long does it take to have your clients vested to you? With big insurance companies, you may have to wait years to have your clients vested to you. However, if you find the right Managing General Agency, your clients are vested to you immediately, helping you maintain your independent status and giving you control of your career.

Nervous that venturing out on your own will decrease your ability to bring in the sales that you were garnering while working for an insurance company? Don’t be. By working with a Managing General Agency you still get all of the perks of working within an office atmosphere, the support of colleagues, training to help you continually improve, and incentive programs to help keep you motivated.

If you want more information about working with a Managing General Agency and how it benefits your career to switch, please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.joinifcg.com