THE FOUR CORNERSTONES TO FINANCIAL HEALTH presents Shopping for Life Insurance The Canadian Financial Security Program

The Evolution of Your Life Insurance Needs Stage 1: Single / No Dependents Stage 2: Partner + Dependents Stage 3: Children are no longer dependent. You are alone or with a spouse or partner Stage 2 Stage 1 Stage 3 The Canadian Financial Security Program

There are 3 Main Questions to be Answered Before You Buy Life Insurance How much coverage do you need? What kind should you have? How much will it cost? The Canadian Financial Security Program

How Much Coverage Do You Need? OTHER NECESSARY Income Replacement Children’s Education Pay Debts Estate Protection Final Expenses Charity Donations Gifts for Loved Ones The Canadian Financial Security Program

Life Insurance Needs Worksheet The Canadian Financial Security Program

Categories of Life Insurance There are Two Basic Categories of Life Insurance Term Life Permanent - Universal Life and Whole Life The Canadian Financial Security Program

Term Life Insurance Low in cost Provides “temporary” coverage Cost increases as you get older Expires between age 75 & 88 This can be used to cover most of your life insurance needs while your family is young and if affordability is a major factor. The Canadian Financial Security Program

But remember – “Term” life insurance will completely expire! It will become impractical to keep for most people before age 65 You must have built a good investment portfolio to cover its expiry It is wise to carry as much PERMANENT coverage as you can afford The Canadian Financial Security Program

Whole Life Insurance Level monthly cost for your “whole” life Accumulates a Cash Value Savings are usually available through a “Policy Loan” Return usually based on safe “interest” vehicles The Canadian Financial Security Program

Universal Life Insurance With Level Premium Good plan for permanent insurance needs Term coverage can be included and later removed Cost is guaranteed for life Economically priced Becomes “paid-up” at age 100 (minimum premium) Can be paid up early The Canadian Financial Security Program

Has an Investment Component (Cash Value), which... Is usually added to the death benefit TAX FREE Is in a separate investment account inside the policy Can be withdrawn by you at any time Can be used to pay future premiums The Canadian Financial Security Program

Has an Investment Component (Cash Value), which... Offers “investment fund” or “interest” investments Grows “tax sheltered” May be available to you TAX FREE if you’re disabled May be leveraged as TAX FREE income - used as collateral The Canadian Financial Security Program

THE FOUR CORNERSTONES TO FINANCIAL HEALTH Shopping for Life Insurance Plan for the unexpected..... The Canadian Financial Security Program