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

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.