Given the problems encountered by some large financial institutions in the United States, how concerned should we be about the state of the life insurance industry in Canada? It is a fact that over the past decade the number of life insurance companies operating in Canada has decreased dramatically. This decrease is mainly due to the mergers and acquisitions of the existing companies. For example, those individuals who maintained policies issued by Maritime Life, Commercial Union, North American Life, or Aetna Life, now find themselves insured by Manulife Financial. Today, insurance is one of the most closely regulated industries in Canada. Unlike the United States, in Canada, there is a government organization that supervises all of the federally incorporated and foreign insurers to ensure that these companies operate in a prudent manner. This organization is the Office of the Superintendent of Financial Institutions (OSFI). For those companies that are provincially chartered their oversight is provided by the province in which they do business. The major life insurance companies are federally regulated by OSFI.
Most parents feel strongly about ensuring that their children are treated equally in their will. For many, this is a moral obligation, and, on the surface that would seem easy to accommodate. Often, however, this is not the case. Most estates are not totally liquid at the death of the testator and some assets are harder to divide than others. This is particularly true when a family business is involved, especially when many business owners have up to 80% or more of their wealth tied up in the family enterprise.
You’ve done a good job accumulating assets and establishing your financial security. These assets will funnel down to the next generation, but at what value? What will the tax consequences be? Will these assets pass directly to your intended beneficiaries, or will they be stuck in probate? What impact will it have if your spouse dies first?
Life insurance can be a very effective tax and estate solution to ensure that the value of your estate is maximised. You’ve worked hard to create this asset – take the steps to protect it. Lets discuss options to preserve your estate.
As this year’s graduates cross the stage they’re filled with dreams of their bright futures. Rightly so – they’ve worked hard to get to where they are. They’re thinking of their careers, their earning potential and getting started on this business of life.
Now’s also the right time to think about protecting that income earning potential against injury or illness. This is an excellent time for young professionals to consider disability insurance; here are just some of the reasons why:
- Rates are low because they’re young and healthy
- These rates are guaranteed for the duration of the plan on superior plans
- Some carriers offer discounted rates to new grads.
- Financial underwriting is a little more flexible since they don’t have a history of earnings.
- Options are available to increase benefit amounts as their earnings increase.
For a graduate, starting out on a brilliant career, this is just another step in the process of establishing that bright future. If you consider their earning potential, doesn’t it make sense to insure it at the best rate possible?
While most business owners realize the benefits of corporate-owned insurance, many do not realize that flexible life insurance products such as universal life can provide them with the protection they need as well as a source of cash for business purposes.
Get in Touch
Tel: (403) 520-0010
Tel: (866) 520-0010
3402 8th Street SE Suite 105 Calgary Alberta T2G 5S7
About Chris Geldert
Recognizing the difficulties navigating corporate structures and the insurance world I specialize in assisting business owners protect, realize and transfer the value of their business. I focus and guiding owners through the process, working with their various professionals, ensuring solutions are implemented to properly manage the risks and maximize the benefits. Above all I work to earn your business.