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

2. 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

3. 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?
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4. 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

5. Life Insurance Needs
Worksheet
The Canadian Financial Security Program

6. Categories of Life Insurance
There are Two Basic
Categories of Life Insurance
Term Life
Permanent - Universal Life and Whole Life
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7. 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.
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8. 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
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9. 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
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10. 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
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11. 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Can be withdrawn by you at any time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
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12. 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

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