Insurance Products:

Like most Canadians, you want to be free of financial worry. That means knowing you will:

• Have enough money to live comfortably in retirement
• Leave adequate financial resources at death for surviving family members
• Generate enough income to meet financial obligations in the event of disability

You want a financial plan that will give you the peace of mind to enjoy the finer things in life. We can help. Not only can insurance play an important role in these three areas, but there are several ways it can have a positive impact on your overall portfolio.

To further understand the role insurance can play in your investment strategy, please refer to the following topics:

• Why you should consider insurance as part of you financial plan
• Live comfortably in retirement - "we can help you answer you insurance questions"
• Insured retirement plan - A Tax Planning Strategy
• The Insured Annuity - An Income Enhancement Strategy
• Key Person Insurance
• The Estate Bond

Why You Should Consider Insurance as Part of Your Financial Plan:

• Estate Conservation
  • As an experienced investor who has developed a substantial net worth, insurance products can offset the impact of taxation on those assets at death to ensure the maximum value of your estate is passed on according to your wishes
• Tax Minimization
  • Many insurance products offer tax advantages that are recognized by Canada Customs and Revenue Agency.  That means, with the right insurance product, you can enjoy the rewards of being an informed investor.
• Estate Maximization
  • If you are building your assets for the sole purpose of passing them on to the next generation, consider making insurance part of your overall plan.  Taking advantage of the tax-preferred status of some insurance products is the first step toward achieving your goals.
• Estate Creation
  • If you are in the early stages of wealth accumulation, insurance can be a low-cost way of creating a financial safety net in the event there is loss of an income earner.
• Income Enhancement
  • Certain insurance products can provide a supplemental stream of income for you or your family during retirement.  Net income may be significantly higher in comparison to other types of traditional investment vehicles.
• Liquidity
  • When the unexpected occurs, insurance proceeds can provide much needed funds to cover financial obligations like taxes, outstanding bills and last-minute expenses.  These products are allowed to bypass the estate, and therefore the entire probate process.  That means these funds will not be held up in court or subject to fees that normally apply to the rest of your estate, such as executor, lawyer and accounting fees.
• Protection Against Disability
  • Everyone understands the benefit of life insurance as financial protection against death, but few realize that the odds are far greater that a person will become disabled in a given year.  This can mean a major loss of income for your family.  The greatest asset that many of us have is our ability to earn an income - so why not protect that asset?  You might also ask yourself how long your investment portfolio would last if you were forced to liquidate in order to replace that income.  Disability insurance can provide funds to offset living expenses during times of sickness or accident.
• Business Planning
  • Many people own private businesses.  In the case of a partnership, the death or disability of one partner can have a devastating effect on the survival of a business.  Insurance can be used to fund a business agreement, which would allow the full value of the business to be passed to the appropriate individuals.  As well, it can provide business owners with the opportunity to maximize the net value of their corporate assets when passed on to the next generation.
• Charitable Giving
  • If allocation of funds to a favorite charity or fraternal organization is an important part of your financial plan, then consider insurance.  There are several insurance products and strategies that allow you to provide funds to a charity or charities of your choice in the most cost- and tax-effective way possible.
• Diversification
  • We are all familiar with two distinct pools of capital: non-registered and registered assets.  But life insurance is another pool of capital and a tax exempt one that can add another layer of diversification to your overall asset allocation strategy.  Create an insurance portfolio to complement your your other investments and ensure that your interests are properly aligned with all your goals and values.

I you want to find out more regarding insurance products offered by the William Vastis Wealth Management Group, contact us today.

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Live Comfortably in Retirement - We Can Help You Answer Your Insurance Questions:

• Why is insurance important to my portfolio?
• How do I know if I need it and how much is enough?
• What type of insurance is best suited to my needs?
• Which insurance company should I deal with?

For many Canadians, these are challenging questions.  A mismatched strategy, bad timing, or incorrect information can complicate your plan for financial peace of mind.  We can provide answers to your questions and structure an insurance policy that meets your needs and effectively complements your investment strategy.  There are several variables to consider before making a recommendation.  For instance, your short- and long-term needs, which include final expenses such as taxes and outstanding bills, future living expense and requirements for children's educations, all must be evaluated.  Backed by a group of specialized, in-house consultants, each with many years of industry experience (refer to Meet the Group - Art Thompson, Insurance Specialist for a detailed biography), you can be sure the recommendations you receive are right for you.  These consultants are also available to meet with you and your other professional advisors to ensure the recommendations contribute to a seamless and comprehensive financial strategy.  Together they have knowledge of the most effective insurance products available and how those products will work for you and your family.

For more information regarding insurance ideas, please refer to the document Whole Life vs. Universal Life.  Should you require additional information, contact the group today.

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Insured Retirement Plan - A Tax Planning Strategy:

Insured Retirement is a leveraged Life Insurance plan that allows for a tax-deferred accumulation of deposits in addition to a basic death benefit.  Deposits are normally made over a period of 10 to 15 years or longer and compound on a tax-deferred basis within the plan.  There are a variety of investment options available for the deposits.  The annual risk charge (premium) is withdrawn from the accumulated investment account to pay for the basic insurance coverage.

The Universal Life contract is designed with an investment component that you can control.  Deposits can be directed into a variety of investment accounts depending upon your investment objectives.  Investment choices include a variety of saving accounts and indexed accounts.  This concept enhances income at retirement since this accumulation may be assigned as collateral for a loan which provides supplemental, retirement income tax-free.  Interest on the loan is capitalized and is repayable upon death.  The loan is designed so that the maximum loan plus the interest never exceed 75% of the accumulated policy value.

At death, this tax-deferred accumulation is paid out to the death benefit on a tax-free basis  in addition to the basic death benefit.  A portion of the total death benefit is used to satisfy the outstanding loan balance and the remaining amount is paid out on a tax-free basis to the estate or named beneficiaries.

The Insured Retirement Plan provides tax-free growth, tax-free income and a tax free benefit.

The Following links provide more detail on the Insured Retirement Plan, should you require more information regarding this product, contact the group today.

• Insured Retirement Plan - A Tax Planning Strategy
• The Corporate Insured Retirement Plan - The Key to Keeping Your Door and Options Open
• Insured Retirement Plan - An Example

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The Insured Annuity - An Income Enhancement Strategy:

The Insured Annuity is an excellent tool for income enhancement during your retirement years.  It combines two insurance products: a life annuity and a permanent life insurance policy.

The Insured Annuity is best for the the person who:

• Is between ages 65 and 85
• Have a need for income as well as a return on capital
• Prefer guaranteed investments
• Not satisfied with the low returns offered by traditional fixed-income vehicles, such as GICs and Government Bonds

Charitable Insured Annuity:

If a total return of capital is not required, the insurance contract could be partially, or entirely, owned by a registered charity.

• The premiums become a tax credit, which in effect reduces the cost of the insurance and provides an even higher pre-tax yield
• Insurance proceeds are distributed to the charity upon death, thereby satisfying the individual's philanthropic wishes

Corporate Insured Annuity:

A corporation could also own both the annuity contract and life insurance policy.  Consider some of the benefits:

• An increased rate of return on corporate assets
• An immediate reduction in the value of the corporation, which reduces the capital gains liability at death, since there is no residual value prior to death
• The return of capital to the corporation upon death of the shareholder, which creates a credit in the Capital Dividend Account and allow allows an amount equal to that credit to flow to remaining shareholders tax-free

The following link will provide more detail on the Insured Annuity.  Should you require further information or if you are interested in the Insured Annuity, contact the group today.

• The Insured Annuity - An Income Enhancement Strategy

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Key Person Insurance:

Key person insurance is life insurance purchased by a business on the life of a critical person - an owner, employee or stockholder.

The proceeds can be used to enable the business to continue following the key person's death.  They may also be used to fund a buy/sell agreement, in which one person with a stake in the business agrees to purchase a second person's financial interest after that partner's death.

Some businesses purchase key person insurance as a matter of prudence; some, because it it a requirement of a bank or government loan.

There are numerous types of key person insurance, including:

• Accidental death and dismemberment, which is the most inexpensive but most limited
• Term insurance, which covers the person for a specific period of time
• Whole life insurance, so-called because it covers the person until he or she dies, no matter when that may be.  This insurance, the most expensive of the three, also develops cash value which may be drawn upon by the business while the person is alive or used to finance a retirement plan for the person.

To Find our more information regarding Key Person Insurance click on the link provided below or contact the group today.

• "What is the Value of Key Person?"

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Estate Bond:

The Opportunity:

Estate Bond is an estate enhancement financial plan that allows you to make the best use of your savings by providing a larger legacy for those you care about most. Success with other types of investments can mean higher taxes and lower net returns. With Estate Bond, success means you are maximizing your savings into a larger tax-free benefit for your heirs.

The Alternatives/Issues:

Estate Bond is ideally suited for individuals looking for a financial planning vehicle that offers:

• A large, immediate estate value,
• The tax-sheltered growth of cash values,
• A tax-free maturity value at death,
• Reduced estate settlement costs if a beneficiary other than the estate is named, and
• May offer creditor protection if an appropriate beneficiary designation has been made.

How does Estate Bond fit into your investment portfolio? It does not replace short or medium term savings you will use to fund a vacation, or purchase a car, cottage, clothing etc. It does not replace your retirement savings, savings you will use to fund retirement income needs. The Estate Bond replaces that part of your savings you never plan to spend during your lifetime.

For more information regarding the Estate Bond, click on the links provided below. Should this product and its features be of interest to you, please contact the group today.

• The Estate Bond - Would You Like to More to Your Family and Less to the Government?
• The Estate Bond - An Example

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DISCLAIMER(S) - Please Read