What is Long-Term Care Insurance? Start thinking about it NOW

As you get older, your health may decline to the point where you can no longer take care of yourself. By helping cover the cost of care, long-term care insurance protects you and your family.

Chances are, you know of someone or have a family member who requires long-term care because a chronic illness, accident, or other medical issue has made it impossible for them to manage day-to-day activities on their own. Whether they’re still living in their home or they’ve moved into a specialized care facility, costs can quickly add up.

What is long-term care insurance?

Long-term care insurance provides financial protection for you and your family to help cover the cost of care if you are unable to care for yourself due to a decline in your mental or physical abilities. It can help pay for assistance to manage your daily activities, such as bathing and dressing, or if your mental condition has deteriorated and you need supervision to protect your health and safety.

How does long-term care insurance work?

Generally speaking, plans can be set up to either reimburse specific expenses, such as homemaking or private nursing services, or they can provide an income-style benefit, which means you’d receive money on a regular basis that could be spent any way you choose.

Staying in a long-term care facility can cost thousands of dollars a month, and government health care programs may not cover all of the support services you need.

Long-term care insurance can help pay for stays in nursing homes and chronic care facilities, as well as for rehabilitation and therapy programs.

Caring for loved ones at home can be a strain emotionally, physically, and financially, especially when it means taking time off work or leaving full-time employment to provide that care. Long-term care insurance can help relieve some of that stress. It can even be used to compensate family caregivers for the help they provide.

Some plans offer unique features, such as the option to protect your benefits against inflation and the option to return premiums to your estate if you die before receiving benefits. And some plans will help you locate long-term care resources in your area.

With long term care insurance, you and your family can focus on finding the best care for your needs, rather than worrying about how you will pay for it.

Contact Bob Lemieux at info@ottawabroker.com for more info and a Free Quote!

Toll-Free: 1-800-503-6140 ex 223

Advertisements

July 21, 2017 at 11:15 am Leave a comment

How much life insurance do you need (if any)?

Before we deal with the downer of your death, let’s talk about your life.

Does anyone depend on you? Like, financially, depend on you?

No?

Then you’re probably fine without life insurance.

Of course, there are certain circumstances in which a single person with no one financially dependent upon them would need life insurance.

But, generally, financial advisers say young, single, childless folks can focus on paying down debts and building up savings first.

If, however, you have a spouse or children, you need to think seriously about what their lives will look like if you die and they discover there’s no backup plan.

Here’s how much life insurance you’ll need to take care of them.

Do you even need life insurance?

Even if you don’t have kids, you may still need some insurance, says Cliff Wilson, an insurance agent in the Phoenix area and former chair of LifeHappens.org.

Perhaps you run your own company? You should have life insurance (your employees are counting on you). Or you could have massive debts you don’t want to saddle your parents with when you’re gone.

Maybe you’re a young and single financial overachiever making maximum contributions to your retirement account and sitting on a fully-funded emergency account — go ahead get life insurance.

The price will be driven down by the two things you’ve got going for you (besides being on top of your financial game): you’re definitely younger and probably healthier now than you will be later.

So while it may not be necessary, if it’s within your means why not help out your family members to cover your funeral costs and go through a grieving process without worry?

Calculating your family’s needs

One guideline about how much life insurance you need is to calculate 10 times your yearly income.

But Wilson cautions against such generalities. “I stay away from rules of thumb,” he says. “There is a lot of information that has to be taken into account like your income, your debt, any businesses, the number of children, if there’s credit card debt, mortgages.”

Estimates based on income also don’t give much guidance to people who are not employed. Particularly a parent who primarily cares for children. That parent needs life insurance, too, so that — at the very least — the surviving parent can cover the childcare and home maintenance costs that had been provided for free.

To get to your specific number for the amount of life insurance you should have, you’ll need to calculate how much your family will need at the time of your death.

Here’s the formula: take your family’s debt obligations left behind and cash needs going forward then subtract the assets you have.

Debt obligations take into account things like mortgages and other debts. They also include outstanding credit card, personal loan or auto loan debts. These costs should be known now.

But there are also debt obligations that may be unknown. You’ll need to estimate any future education costs and to account for final expenses like medical bills, funeral and estate-settling costs that you leave behind.

The other part of getting to the number of what your family needs, is to determine their cash-flow needs to sustain the household going forward.

Here’s where your income — that your family will lose upon your death — comes in.

“The higher your income, the higher your responsibilities and typically the higher your spending,” says Wilson. Consequently, the more insurance you’ll need to cover its loss.

Offsetting needs with assets

But, the good thing is you have assets. You have liquid assets, right?

What you have available to go toward your family’s ongoing expenses — in cash savings, college savings or other life insurance — should be subtracted from their needs.

Here’s a back-of-the-envelope example. You earn $50,000 a year and are married with 5-year-old and 3-year-old children. You and your spouse owe $100,000 on your mortgage and carry $15,000 of debt on your car and credit cards. You’re looking to get a 15-year life insurance policy that will cover you until your youngest is out of high school.

You’ll take those obligations together with $750,000 in income replacement ($50,000 for 15 years), $200,000 for the anticipated cost of two college educations and $9,000, the average cost of a funeral.

That’s a grand total of $1.074 million.

From that, you’re going to subtract what you already have going on.

Maybe you have $15,000 in college savings, $30,000 in cash savings and a $100,000 group life insurance policy through your job (up to two times your $50,000 salary). Those are your assets.

That leaves you with life insurance needs of around $929,000.

You’ll need to conduct your own calculations. Your spouse’s earnings, taxes, earnings from investments and inflation also play a part. “Most everyone is responsible and loving, they just don’t act because they think they can put off until later.”

June 9, 2017 at 10:36 am Leave a comment

8 SIGNS IT’S TIME TO REVIEW YOUR CURRENT LIFE INSURANCE

We don’t expect you to continually review your life insurance policy for fun; it should indeed be something you don’t worry about all too frequently. To help you manage and adjust your life insurance without hours of research, here are eight signs it’s time to take a closer look at your current policy.

 

1. Your Cash Accumulation Account is Dwindling

Many permanent life insurance policies come with the option of adding a cash accumulation account. This account serves as an investment, one that can provide great financial flexibility and yield attractive interest rates.

What many people don’t understand, though, is that the money in a non-guaranteed universal life policy doesn’t grow automatically. Like any investment, a cash accumulation account comes with market risk. And in a lifetime policy, your cost of insurance increases each year as you age. As a result, if you’re not keeping track of your premium, interest rates and the balance in that account, it can dry up unexpectedly.

Possibly the worst horror story we’ve heard is that of an older man who had bought a policy through an agent many years back. His cash accumulation hit zero before he became aware of what was happening. To retain his life insurance, he was required to pay the cost of his policy, plus a mortality risk charge, plus his base premium—all out of pocket and with no warning. To make matters worse, he had a major health issue and simply could no longer qualify for new life insurance. Had he reviewed his policy and taken action earlier, we may have had an opportunity to shop around and secure a more workable policy prior to his cash depleting and health deteriorating.

2. Your Policy Expires Soon

With any life insurance, you want to stay well ahead of your term’s expiration date. Otherwise, you could see your rates skyrocket, both for renewing your policy and finding a new one. There’s also a six-month rule that allows providers to round your age up to your nearest birthday, another reason we recommend reviewing your options a year out from when your policy is set to switch.

3. Your Rate Has Increased

As seen in the first two points, don’t expect to receive a warning when a price increase is approaching, whether for your personally owned insurance or an employer group plan. Group insurance, for example, will rise in cost everyone to five years. As the cost of health insurance increases, employers are choosing to stop subsidizing life insurance.

In some cases, a rate hike may be unavoidable. However, it’s best to be pro-active and shop the market for your current age, health and insurance needs. Some top life insurance companies have much more competitive rates than home and auto insurance specialists.

shutterstock_64855402

4. You’re Taking a Pension

If your employer offers a pension and you’re preparing to retire, life insurance should be on your radar for two reasons:

First, there’s a good chance you’re among the many Canadians who have employer-provided group life insurance (and, as the stats from an earlier show, don’t really know how it works). Most employer-sponsored group life insurance can’t be converted to an individual plan. When it is convertible, the rates will typically increase in a short time, similar to COBRA health coverage.

Second, life insurance is often viable, and in many cases, less costly replacement to a spousal pension benefit. This strategy referred to as “pension maximization”, allows you to accept your full pension and protect your spouse with life insurance rather than taking the reduced fixed benefit you would see by including them to your pension.

5. You Have a New Mortgage (Or Have Paid Off an Old One)

Let’s say you have a life insurance policy with a death benefit of $100,000. If you buy a new home with a mortgage of $500,000 total, you’ll want to update your policy to ensure your home will be left to your family free and clear of debt in the event of your death.

Likewise, if you have just paid off your mortgage, the life insurance you previously bought to cover that mortgage can become unnecessary. You’ll want to consider all of your investments and assets before downgrading, but you’ll likely be able to reduce your benefit and cost of life insurance.

6. You Have a New Addition to the Family

shutterstock_77387434

Whether you’re having your first child, third or sixth, a new addition to the family should trigger a review (and usually a revamp) of your life insurance. Most people will add enough life insurance so that if they died tomorrow, there would be funds to provide for that child through their college years. It’s usually not necessary to start over with entirely new life insurance. Your agent should compare the cost of adding a new policy to the cost/benefits of combining all of your policies.

Stay-at-home parents and non-working spouses should align their coverage with these life changes, as well. If they were to pass away with inadequate coverage, the financial burden can be the same as if the working spouse had passed away. Should my wife die, for example, she has enough life insurance where I could afford to stay home with my children until they reach high school age?

7. A Change in Your Health

A small or short-term health situation will often trigger “I may not live forever” realizations. Some conditions make you unable to qualify for new life insurance for a period of months or years. A licensed independent life insurance agent (not your home and auto guy) will help assess your options.

Most term life insurance carries a conversion option, allowing you “convert” all or a portion of your current life insurance to lifetime coverage. You’re not required to reprove your health, making this one of the most valuable features of low-cost term life insurance. Check with your insurance carrier or your agent to determine your age deadline; it’s generally between 60 and 70.

8. You Don’t Really Understand Your Policy

By any means, having a life insurance policy that you don’t understand can be as dangerous as not having life insurance at all. An independent insurance agent can help you review, understand, evaluate and, if necessary, replace your current life insurance policy.

For more info contact Bob at ottawabroker.com

1-800-503-6140 ext 223

iquote

December 30, 2016 at 1:35 pm Leave a comment

Hard to insure Seniors for Life Insurance: Get a Free quote Now !

BBaoT6w

With  ottawabroker.com & Canada Protection Plan, you can get the life insurance coverage you need in as little as just a few days. We offer the most options and largest amounts of No Medical & Simplified Issue life insurance with competitive premiums. Our many options can provide the coverage you need, whether you have very serious medical conditions, or even if you are in good health. See how we can help you to solve your life insurance needs.

Why should you consider No Medical & Simplified Issue Life Insurance?

  • You’re a Canadian senior
  • You have some health problems
  • You’re hard to insure
  • You have a dangerous job or dangerous hobbies
  • You don’t like needles or medical exams
  • You just want your coverage fast

Call us now for a Free quote Bob Lemieux 1-800-503-6454 ex 223

or visit us http://ottawabroker.com/services-view/no-medical-insurance

December 7, 2016 at 2:50 pm Leave a comment

WHEN WAS THE LAST TIME YOU REVIEWED YOUR LIFE INSURANCE NEEDS?

 

 WHEN WAS THE LAST TIME YOU REVIEWED YOUR LIFE INSURANCE NEEDS?

 

 

Have you conducted a review with a professional advisor since you purchased your current life insurance policy?

 

Yes * No *
Have you recently been married or divorced?

 

Yes * No *
Have you purchased a home or changed jobs?

 

Yes * No *
Have you added or reduced dependents?

 

Yes * No *
Do you know who the beneficiary is on your policy?

 

Yes * No *
Do you know how your policy has performed since you purchased it?

 

Yes * No *
Do you know the going rate for the same coverage today?

 

Yes * No *
Have you integrated your life insurance policy with your estate plan? Yes * No *

 

GETTING A LIFE INSURANCE POLICY REVIEW IS A SIMPLE, THREE-STEP PROCESS:

  1. Schedule a complimentary policy review with your financial advisor and take all of your insurance statements with you to the consultation.
  2. Together you will assess your current policies to determine if your existing policy is competitively priced, meets your current objectives and is positioned for long-term performance.
  3. If you have a permanent policy, your advisor may request in force illustrations showing the current, projected and guaranteed values.

4.If you have term life insurance, your advisor will determine if you are paying a competitive rate for the amount of coverage you receive.

5.. If appropriate, your advisor may ask you to consider additional insurance coverage options and work with you to determine solutions best suited for

 

CONTACT ME ROBERT LEMIEUX FOR A FREE CONSULTATION !

1-800-503-6140 ex 223

September 30, 2016 at 1:00 pm Leave a comment

Qu’est-ce que votre banque ne vous dira pas à propos de l’assurance prêt hypothécaire !

SAM_1213Après 22 ans en tant que courtier d’assurance, je suis toujours étonner de la façon dont beaucoup de gens ont encore l’assurance prêt hypothécaire auprès d’une banque. Quel est le problème avec ça …

Beaucoup…
Vous vous asseyez avec un agent de prêts hypothécaires dans un établissement de crédit. Vous avez signé les documents hypothécaires, et maintenant le prêteur demande: «Voulez-vous une assurance hypothécaire? De cette façon, si vous décédez, nous allons rembourser votre prêt hypothécaire et votre conjoint ou de la famille n’aura pas à s’inquiéter “.
Naturellement, vous êtes tentés de répondre: «Où dois-je signer?” Mais attendez! Avant de mettre la plume au papier, assurez-vous qu’ils connaissent les faits sur la couverture que vous envisagez. Il ya des chances que vous feriez mieux de protéger votre prêt hypothécaire avec une police d’assurance-vie personnelle.
Assurance hypothécaire peut limiter votre contrôle – ainsi que la valeur, flexibilité et sécurité.
Le prêteur hypothécaire est le seul bénéficiaire du produit – Avec l’assurance hypothécaire, l’institution financière est propriétaire et bénéficiaire, et reçoit tout le bénéfice de la mort, et l’utilise pour rembourser le capital de prêt hypothécaire. Avec l’assurance vie personnelle, vous décidez qui est le bénéficiaire sera. Et ce bénéficiaire (généralement un membre de la famille ou conjoint) décide de la meilleure façon de passer le bénéfice décès libre d’impôt. Ils peuvent rembourser le prêt hypothécaire – ou ils peuvent préférer investir, de couvrir les frais de subsistance ou faire des achats importants au lieu de payer un faible taux d’intérêt hypothécaire.
La prestation de décès de l’assurance hypothécaire diminue au fil du temps -L’assurance prêt hypothécaire auprès d’un prêteur est “. Diminution assurance temporaire” Comme vous payez le principal, le montant que vous devez sur l’hypothèque descend – et donc ne le montant de la prestation de décès nécessaire pour rembourser le restant hypothécaire. Mais les primes d’assurance prêt hypothécaire restent les mêmes, donc avec chaque paiement de votre client obtient réellement moins pour leur argent. Rien de tel avec l’assurance-vie personnelle – une valeur de $ 100,000 visage sera toujours valeur de 100.000 $, tant que ils font les paiements de primes.

Primes d’assurance prêt hypothécaire peuvent ne pas être aussi bas que vous le pensez – Alors que les articles récents font valoir que les primes d’assurance prêt hypothécaire sont inférieurs à ceux de l’assurance-vie personnelle, ce n’est pas toujours le cas. En fonction de votre âge et de la valeur nominale de la politique, une couverture individuelle d’assurance-vie peut être moins cher. Alors que l’assurance hypothécaire offre un ensemble de taux, un contrat individuel d’assurance-vie peut offrir des taux plus bas et plus de valeur aux personnes ayant une meilleure santé et un mode de vie sain.
Si votre client change les prêteurs hypothécaires, ils auront besoin de nouvelle assurance prêt hypothécaire – Beaucoup de propriétaires changent prêteurs hypothécaires alors qu’ils sont payer leur maison, surtout si elles peuvent obtenir un taux d’intérêt inférieur ailleurs. Mais s’ils retirent leur prêt hypothécaire d’une société, ils perdent généralement leur assurance hypothécaire trop. Ils devront présenter une nouvelle demande à la nouvelle société, et probablement payer plus parce qu’ils sont plus âgés. Si l’hypothèque est protégé par une police individuelle d’assurance-vie, vous pouvez transférer votre prêt hypothécaire à une autre société et de l’assurance demeure en vigueur. Il n’est pas nécessaire d’appliquer de nouveau, et aucun risque de perdre l’assurance en raison d’un changement de l’âge ou de la santé.
L’assurance prêt hypothécaire peut être annulé sans avertissement – L’assurance prêt hypothécaire est une assurance de groupe – détenue par le prêteur. Vous serez l’un d’un groupe de personnes qui ont une dette hypothécaire avec le même prêteur. Le prêteur peut annuler cette stratégie de groupe à tout moment, et vous perdrez votre couverture. Avec un contrat individuel d’assurance-vie, vous êtes en contrôle, parce que personne ne peut annuler ou de modifier leur politique.

SOLUTION:

Assurance-vie vous permet de rester en charge

Une fois de plus, voici comment vous pouvez bénéficier de la protection de votre prêt hypothécaire avec une police d’assurance-vie individuelle à la place de l’assurance hypothécaire.
1)Vous choisissez  le bénéficiaire de la police d’assurance-vie.
2) Ce bénéficiaire décide de la façon de dépenser la prestation de décès.
3)La valeur de la prestation de décès reste le même au fil du temps.
4) Les primes d’assurance-vie peut être inférieur aux primes d’assurance prêt hypothécaire, selon l’âge, la santé.
5)Vous pouvez modifier les prêteurs hypothécaires  vous garder la même assurance, aucun changement requis.
im_sp_bipper   Personne ne peut résilier le contrat d’assurance-vie, discuter avec votre agent de la difference entre l’assurance hypothécaire contre l’assurance-vie personnelle , il pourra vous aider à peser les options pour obtenir le plus d’info. Pour en savoir plus sur la façon dont la protection hypothécaire grâce à l’assurance vie personel peut vous être utile.
 Appelez-nous au numéro sans frais 1-800-503-6140 # 223 ou

visitez http://www.ottawabroker.com pour une SOUMISSION  gratuite.

June 3, 2016 at 11:02 am Leave a comment

What should I use an RRSP or a TFSA? Earn 5% Guaranty every year TAX FREE !

TFSA:

Lets you stash extra cash for just about anything — rainy-day savings, a new house or retirement — without paying any tax on the growth within the account or on withdrawals.

Start with a TFSA, when your income goes up add an RRSP...

rrspvstfsa

Confused by another set of letters? Don’t be. TFSAs, or Tax-Free Savings Accounts, are simply one more way to shelter your money from the taxman. The difference is that with RRSPs, you get a tax break when you contribute. When the money’s withdrawn, you’re taxed. For TFSAs, the process reverses. There’s no tax break up front, but the government can’t get its paws on your money when the funds are withdrawn.

So which is better? It all depends on how much money you make. Canadians earning less than $36,000 should use TFSAs, says Gordon Pape, author of The Ultimate TFSA Guide. The reason is that people with lower incomes can make more in retirement than they do when they are working, due to the government benefits you get at age 65. You always want to pay income taxes when your income is lower, so if you make less than $36,000 it’s better if the money is taxed before you put it in your retirement savings, as is the case with a TFSA. Plus, when you retire, the money you take from TFSAs isn’t considered income, so it won’t result in clawbacks to Old Age Security and the Guaranteed Income Supplement.

The same isn’t true for RRSPs.

If you’re just starting your career and earning in the $30,000 range, you could start with TFSAs and when your income goes up, you could switch to RRSPs. Not only will you get larger tax breaks, but you’ll have built up lots of extra RRSP contribution room from the years you were using a TFSA instead.

 

Need Help?

Earn 5% Guaranty every year TAX FREE !

visit http://www.ottawabroker.com

Call  Toll Freel 1-800-503-6140 ex 223

info@ottawabroker.com

email_icon2

 

January 29, 2016 at 2:41 pm Leave a comment

Older Posts


wordpress com stats