I wanted to bring to your attention an area of interest that is becoming front and centre for existing clients of mine. Namely, risk management. I am not referring to risk associated with the equity markets, rather the risk associated with the loss of an income on the household income statement. You see, you bring so much more to people’s lives than just a financial contribution. But if you can’t be there, risk management in the form of life insurance is a financial planning strategy that ensures you leave something behind to help those important to you.
Risk management ensures you have ample resources in case of a pre-mature death that assists you in covering the following:
• Funeral costs
• Travel expenses to bring the family together
• Replacing lost income
• Replacing health benefits
• Child care
• Education costs
• Home maintenance
• Estate and legal fees
• Final income taxes
• Outstanding debts and bill payments
Assuming you have life insurance in place as part of your financial plan, the fact that life keeps changing, it’s important to review your coverage to ensure you have the protection you and your family need. As a suggestion, if you haven’t reviewed your risk management needs recently, the points below are reasons to revisit them:
• Change in marital status
• Addition to the family (child, grandchild)
• Family member embarking on their own financial plan
• New home
• Mortgage renewal
• New personal or business loan
• Change in career
• New business venture
• No longer part of group benefits plan
• Quit smoking
• No updated Will or Power of Attorney
• Change the beneficiary of the existing policy
The common question I receive from clients is “how much coverage do I need”? My response is everyone is different! Everyone has different circumstances, are at different stages in their lives, and have different needs. In order to simplify the question, I enclose a link to InsureRight.
http://insureright.ca/calculator/#analysis
InsureRight is a very useful resource. It’s calculator can assist you based on your circumstances and ultimately provide you with an idea of how much risk management coverage you need. Please feel free to peruse the website.
As a Certified Financial Planner, I am able to service your risk management needs. I am licensed with the Financial Services Commission of Ontario which allows me to offer insurance products to consumers. Moreover, I am partnered with all the major insurance companies in Canada ranging from Manulife, Sunlife, Canada Life, Great West Life to Industrial Alliance, Empire Life, Standard Life, and Transamerica Life. I am also partnered with Bank owned insurance entities such as RBC Insurance and BMO Insurance*. Access to all these providers ensures clients of mine can benefit from a very competitive rate.
I am here at your disposal should you have any questions or wish to schedule an appointment.
Have a wonderful and safe long weekend
**Insurance products provided by Capital Insurance Services which is registered with the Financial Services Commission of Ontario. Capital Insurance Services is a separate subsidiary of Security Financial and is owned and operated by Leo Belmonte. Security Financial provides investment products and is registered with the Ontario Securities Commission**