Clients looking for a tax-effective alternative to a low-risk portfolio, life insurance is an option worth considering. When we think of asset classes, we usually think of traditional saving products like stocks, bonds, GIC’S. Using insurance as part of your overall investment portfolio most often produces a much higher internal rate of return than a traditional fixed income portfolio. Insurance provides a tax-free death benefit, tax preferred cash value growth, bypasses probate fees and allows your estate to remain private.
Critical Illness Insurance
Chances are you know someone, a family member, a friend or a co-worker, who has suffered a life-threatening illness. We can all relate to how coping with the diagnosis of a critical illness and the medical treatments can be emotionally and physically draining. But have you considered the potential financial impact? If it happened to you, what are your concerns? What will weigh heavily on your mind? Would you be worried about covering the bills or maintaining your standard of living due to lost income? At MMG Insurance and Estate Planning we help put a plan in place to protect what matters most.
The ability to earn an income is your greatest financial asset that you need to protect. Purchasing disability insurance can provide you with ongoing payments in the event you become disabled and can’t work.
When it comes to protecting your mortgage, you have a choice. Go the route of a traditional lending institution or take advantage of a great alternative. Not all mortgage protection is created equal. Ask yourself:
- Did you choose your beneficiary?
- Can you keep it if you move?
- Who owns the policy?
- Are you paying too much?
Read more on how you can protect more than the mortgage.
Estate transfer needs generally come later in life, once financial resources have already been accumulated. To preserve and transfer these resources, life insurance can be both economical and tax-efficient. Estate transfer needs can be somewhat broader than income replacement needs and could include:
- Final expenses
- Estate equalization
- Charitable donations
- A tax-sheltered asset class