What Should I Do With My Tax Refund?

Thomson Schindle Green (TSG) Insurance Company is a full-service, independently-operated insurance brokerage that provides insurance policies as well as financial planning where our specialist can often help with regards to lifestyle and business planning as part of your wealth management goals. As tax season has now come to a close for 2017, our wealth management specialist are being asked, “What can I do with my refund?”

It’s a question that gets a lot of attention this time of year. Some will splurge or pay of bills but if you were paying attention in your high school economics class then you’d know that you should invest it. A 2014 Globe and Mail articles notes that “insurance can offer three key tax benefits: Tax-sheltered growth of investments inside the policy, tax-free payout on death of the insured, and a boost to the capital dividend account (CDA) of a corporation. The CDA can allow shareholders to extract cash from the company tax-free. These attributes create many uses for life insurance.”

For business owners that last point is critical, as in an opportunity to purchase critical illness insurance for yourself and key stakeholders in your organization. Living Benefits Specialist Jackie Lively-McKee suggest that by only using a portion of your tax refund, you could purchase a Critical Illness policy” including loss of independent existence, second-event rider, and return-of-premium at expiry to maximize your investment based on a 10-year renewable term to 75.

If you have dependents, or partners and staff who depend on you, a term life insurance policy is fundamental to your financial safety net. However, many consumers across the board seem to have one thing in common when it comes to term life insurance: they overestimate how much a plan actually costs. The secret is to find a plan that’s both comprehensive and affordable.

When putting your refund to good use in a policy, calculating how much insurance you really need can be tricky, this is where the insurance brokers at TSG Insurance can help with our selection of insurance products and financial planning that fits your budget. If you have questions, ask our experts.

There are lots of things to spend your tax refund on, but the right insurance policy – life, critical illness, or tax-sheltered growth – the right policy can keep you, your family, and your business financially protected for years to come from one year’s tax refund just makes sense, like your high school economic teacher used to say.

If you would to meet in person with one of our insurance brokers or wealth management specialist in Bassano, Brooks, Calgary, Edmonton, and Medicine Hat, or have insurance questions for your home or business, contact Thomson Schindle Green Insurance Company at 1-800-830-9423 today to receive a free quote. If you need assistance with after-hours claims, please contact us at 1-888-224-5677 or visit one of our locations.