Specialized Life Insurance in Calgary & Edmonton Area
Life insurance is a financial vehicle that pays a one-time tax-free lump-sum of money to a beneficiary, upon the death of the insured. This money is then used to replace an income that is now lost and to pay off debts. There are a number of different design options that can be used in order to best meet the needs of the insured, and at TSG we can help you determine the correct amount of coverage and help you stay on budget with your planning.
Mortgage insurance is life insurance
Lenders use the term mortgage insurance because all their products do is pay off a mortgage if the insured dies. Even if the mortgage is lower than the insurance your beneficiaries do not get the extra. However, if you own your insurance you name the beneficiary and 100% of the proceeds go to your beneficiary. As important, if there is a possibility you may sell the current home and buy a new one at some point, by owning the policy you do not need to get new ‘mortgage’ insurance and have to go through medical underwriting. Your policy is yours forever if that’s what you want.
Halt the erosion of your wealth caused by taxation
Taxation is the biggest challenge to the erosion of wealth. We can help with several different insurance solutions that can shelter the cost of the tax on the growth of invested dollars, help you gain tax-free access to the investment when you want to withdraw money, and also help liberate and extract retained earnings from your corporation in a tax-advantaged manner.
Do you have a business partner?
Things are great when business partners get along but can get dicey if friction develops between them. It’s good practice to work with your lawyer to draft an Unanimous Partnership Agreement that lays out guidelines regarding what should happen to the business in the event of a death, disability or retirement of one of the partners. Life and disability insurance are then put in place to ensure the cash is readily available to meet the obligations of the agreement.
Is there an employee in your organization who is key to the success of the business?
In most businesses there are one or two key people whose loss would be very serious. Take for example a farmhand who is responsible for running your cattle operation and what would happen in extremely cold weather or during calving if they could not work and look after your livestock? One way to manage this risk is to have a Key Person policy that pays money into the farm corporation. If the key employee dies or gets disabled, that money can be used to hire a replacement worker immediately.
Transition of the farm or business
In many families some kids may stay in the family business and others may leave to seek other careers. Often a life insurance policy is used to equalize the amount of money the off-farm kids get while the on-farm kids inherit the operation and can continue to build it. This is a very important discussion and financial workout and at TSG we invite you to work with our team of experts in the fields of accounting, law, and finance to help with this most important transition.
Please Call Us!
If you are looking for a policy that offers coverage for life, get in touch with us for more information. We will be glad to assist you.