A Reflection – Why sell life insurance?

What a busy and interesting week it’s been so far… After being in the business of “protecting families”, giving people money when the need it the most” and my fav “paying the bills for problems you think you’ll never have” for a number of years, there are always those weeks in your business that make you sit back and think about why it is that you work 7am to 11pm on some days, and why it feels so good to do so…

This week I have had the opportunity…

To help 2 couples ensure that their spouses (and in one case child on the way) won’t face a financial burden in the event that something tragic happens to either one of them… Putting protection in place for families means that in the event that a family loses their income due to illness or death, that I will be able to step in and help clients make sure that they won’t lose their home because the one remaining income won’t support the mortgage payments along with all the other bills that don’t stop… I will be able to ensure that the baby who is on the way will have the funds to get an education and have a better life even though one of their parents died prematurely leaving the family to survive off of one income.

To work with a newlywed couple who are focused on getting out of debt in order to save up for their first home so that they can take advantage of the benefits of owning their own home, and to put protection in place so that if something did happen, their situation doesn’t get worse.

To work with a client who I have been trying to insure for 2 years, who loves his 2 children dearly and wants to make sure that they are protected and are well set up… After 2 years we are finally going to be able to get a program in place.

The rest of the week so far…

Will be spent helping other couples get out of their “bank issued” mortgage coverage, which will help them save 30-40% off of what they are currently paying…

Working with a couple who is retiring to make sure that we protect their medical and dental benefits and so that their winters spent in warmer climates won’t bankrupt their retirement in the event that there is a medical emergency.

I would have never thought…

that when I started into this business that I would develop such a passion for helping others with their planning.  I initially never thought of the impact that I can have in the financial security of others.

When I started in this business I never thought of why life insurance is important, why I should have critical illness coverage and Long Term Care coverage, and what the long term impact is of doing  a little planning now to protect yourself in the future…

If you’ve never thought insurance is important…

I would love to sit down with you over a coffee or tea and have a discussion about some of the things that I may be able to do to help you and your loved ones.

My time is free, and my advice costs you nothing other than your time… If there is a solution we can put in place to help you achieve your goals, and protect your investments and future income, I would love to have the opportunity to work with you.

I know this post is a little soft and emotion driven, but I am simply having a week that is reminding me of how important it is to do some planning to protect yourself and those you love.

Fell free to contact me at 604 649-1185.

Have a great rest of the week,

Derek

If you never got in a car accident would your Insurance Company give you all your money back???

Think of how much you pay every month to ICBC (or your respective car insurance company)…  It’s A LOT, but you’d never drive your car without it.

Every month, we grit our teeth and pay our insurance premiums to make sure that in the event we get in an accident, we don’t have to pay out of our pockets for repairs or replacing income because we can’t work.

WHAT IF…  at 65 your insurance company gave you all your money back???  I’d sign up for that plan in an instant and I’m sure you would too…

So Where Am I Going with all of this?

Take  a minute to think of how many people you know who have either had cancer (1 in 3 Canadians will) , had a stroke (1 in 9) or  heart attack (1 in 4).

Now think of  the financial impact that one of these illnesses would have on a family.  What if you couldn’t work for 6 months because you were going through treatment for Cancer? How would you pay your bills? Who could afford to take time off to drive you to Chemo every week? Who would mow your lawn? (You get the idea…)

I have a plan that I can put together for you that will help you pay your bills if you get sick.  This plan pays you a lump sum payment that you put in you bank account so that you have money for income replacement, and any additional treatment you want to have so that you can get better and get back to work.

Ready for the part that seems too good to be true?

You may be sitting there reading this and going… “Well I’m healthy and won’t get sick” (That’s what we all hope for, but we know it’s not realistic).

That being said…  If you beat the odds and never have to claim on your illness policy, THE COMPANY WILL GIVE YOU 100% OF YOUR MONEY BACK…

This is a scenario where you cant lose if you sit down and talk to me (or your current advisor) about, but YOU CAN LOSE HUGE if you don’t.

Nobody wants to get sick, and I hope no one ever does, but I know that some of my clients are going to claim on their insurance.  On the day that that happens, I’m going to know that I had a huge impact on helping them get through the financial strain of their illness.  And for the clients that don’t get sick… they get all their money back!

If you’re still reading…  Give me a call and lets meet to talk about this over a cup of coffee or glass of wine.

I’m not writing this today because I need a sale to pay my mortgage, I’m writing this because if you get sick, I want to make sure that you are able to afford to pay yours…

Regards,

Derek   

604 649-1185

When is the last time you took 6 months off of work? If you became critically ill, you may be forced to…

38% of women and 44% of men will develop cancer during their lifetimes (1).
There are approximately 70,000 heart attacks each year (2) and every 10 minutes, a Canadian has a stroke (3).

If you become ill however, you will likely survive… Cancer mortality rates are declining (4), in recent years, the rate of survival among patients hospitalized for a heart attack has increased to 92% (2), and 80% of Canadians hospitalized for stroke each year leave the hospital alive (5).

Saladmaster (Call Doug Isaac at 604 574-5553) cookware, combined with leading a healthy lifestyle are some of the best defenses against the risk of a critical illness, however in the event that illness does strike, let me help make sure you will not jeopardize your retirement savings and ensure you will be able to afford adequate treatment.

If you don’t get sick, Sun Life Financial will return every penny you put into your plan!

I would love to show you how.

Sources: (1) Canadian Cancer Society, http://www.cancer.ca, 2006; (2) Heart and Stroke Foundation, 2001; (3) Heart and Stroke Foundation of Canada, Annual Report 2004; (4) Canadian Cancer Society/National Cancer Institute of Canada: Canadian Cancer Statistics, 2006; (5) Heart and Stroke Foundation, 2002.

I’m Self Employed and have no group benefits… What Can I do?

Ahhh… The Dilemma…

Do I stay in my job that I don’t like because it has great medical/dental benefits, or do I venture out, do what I’ve always dreamed of, start my own business and forever pay for my root canals and prescriptions out of my own pocket???

Go do what you have always dreamed of because my friend… you can have it all!  Most self employed individuals forgo the luxury of group benefits because of the advantages of being self-employed.  They pay cash (after tax personal dollars) when they go to their dentist, not knowing that there is a better way…

Enter the PHSP! – The Private Health Services Plan is designed to allow self employed individuals the luxury of paying for their medical bills with corporate dollars, and then using the medical expense as a write off against income.  In comparison to a traditional plan where you would be paying monthly, with a PHSP there is no monthly cost. 

Set up is under $400.00 (one time only), and you simply pay a 10% premium on top of your expenses as an administration fee.  What this means in english is that..

  • You end up paying for your medical bills with corporate (or business dollars).  If you are incorporated, your marginal tax rate is lower, which means it COSTS YOU LESS.
  • You now have medical expenses that you can write off against your income, which helps us fight the tax man.
  • You aren’t paying for a monthly plan, only for when you have expenses. This minimizes your cost if you are using it for yourself, and minimizes abuse by employees who would otherwise max out their benefits (which makes your renewals more expensive).

Call your financial advisor, tax accountant or call me at 604 649-1185 if you would like more information.

To pay as much as everyone else…keep doing what you’re doing.  If you want to take advantage of a CRA supported program, let’s talk.

Enjoy your Friday!

Derek

Bank Mortgage Insurance VS Life Insurance

The most common question that I get is about the difference between bank issued mortgage coverage and life insurance.  I will post some more details soon, but in the meantime, check out

http://www.cbc.ca/marketplace/in_denial/

Back in a bit…

D

Here”s a little side by side comparison.  If you have your mortgage insured through your banks “Mortgage Insurance”, you may not be as protected as you think you are.

In most circumstances, the bank does their underwriting AFTER someone dies, which in english means, if you had a “pre-existing condition”, often times the bank will decline the coverage…  With life insurance, the decision is made ahead of time, which allows couples to plan ahead rather than living under the false pretense that they are covered…

SO What does this mean???

Well…  think of how hard you work to manage your bills right now.  Now remove one of the incomes from the family.  What kind of impact would that have on your life?  I’m guessing huge.

Feel free to drop me  a line and I will be happy to discuss your options with you.  There is no fee to meet with me and we’ll only put a policy in place if it makes sense to you… After all, it’s your financial stability we’re talking about

Mortgage insurance

Life insurance

Your insurance covers only your mortgage balance. You can choose from different types of insurance (i.e. term or permanent) with a death benefit to cover more than just your mortgage.
Even though your mortgage debt reduces over time, your premiums remain level. Your coverage amount does not decrease over time unless you choose to change it.
If you die, only the outstanding balance on your mortgage is paid off. If you die, the death benefit is paid to your beneficiary who can use it as they see fit, not just to pay off your mortgage.
The mortgage lender is automatically the beneficiary. You name the beneficiary.
If you take your mortgage to another company, you may lose your existing mortgage insurance and may be required to re-qualify for new mortgage insurance. If you take your mortgage to another company you keep your existing insurance, so you don’t have to re-qualify.
You lose all your coverage when your mortgage is repaid, assumed or in default. As long as premiums are paid your coverage remains in place, even if your mortgage is repaid, assumed or in default.
You have no flexibility to change your coverage as your needs change. If you decided you need coverage only until your mortgage is repaid but later realize you require coverage for other needs, you can convert your insurance to a permanent plan.

An Introduction to “Vancouver Insurance Advice”

Well, the world of social media has invaded my life and there are so may things to learn.

I am feeling a bit like George Carlin right now “I’ve been uplinked and downloaded. I’ve been inputted and outsourced. I know the upside of downsizing; I know the downside of upgrading. I’m a high-tech lowlife. A cutting-edge, state-of-the-art, bicoastal mutlitasker, and I can give you a gigabyte in a nanosecond.”

I want to first thank @TLCHOME for helping me into this wild world, to @MattsMedia for spending time with me on where to begin, and @ShaneGibson for his time on the phone.

This blog will be a forum for you to ask questions about…

Life Insurance
Critical Illness Coverage
Mortgage insurance
Long Term Care Coverage

A little about me…

I am an insurance/investment advisor with Sun Life Financial and am in my 4th year with the company. I work with Individuals, Businesses and Small companies and provide group benefits, insurance and investment solutions.

“I PAY THE BILLS FOR THE PROBLEMS YOU THINK YOU’LL NEVER HAVE”

Everyone knows someone who has been financially affected by a premature death in the family or someone suffering from a critical illness (Cancer, stroke, heart attack)… It is my job to talk to you before this happens to ensure that your family and business don’t suffer because of it.

You can reach me…

on twitter: @InsureVancouver
on Facebook: http://www.facebook.com/InsureVancouver
Company website: http://www.sunlife.ca/derek.strokon
on my cell phone: 604 649-1185

…or just yell at the top of your lungs and I’ll come running to help you out.

I’ll write again soon.

Derek