Insurance Planning

A well-thought-out financial strategy would be incomplete without a thorough review of current insurance coverage and forward-looking insurance planning. Insurance is generally used as a tool to either replace income in the case of unforeseen events, such as a disability that prevents you from working or as a financial planning tool. Different types of insurance will help protect you and your family in various ways against the costs of accidents, illness, disability, and death. Individual insurance needs vary greatly depending on age, income, occupation, and family situation, which is why it is important to work with knowledgeable professionals when putting these critical financial safeguards in place.

Estate Preservation

Insurance can be used as an estate planning tool to help offset the costs of settling an estate. Taxes, liabilities, estate-related costs, and other future expenses can all be offset by permanent coverage. You can maximize the value of assets you intend to pass on to the next generation by taking advantage of the tax-favoured status of universal or whole life insurance. The long-term value of these tools can frequently far outweigh what would be earned through regular investing.

Insurance as a Corporate Asset

Using insurance within a corporation can be a very effective planning and investment tool. Corporately-owned insurance can help to offset future capital gain taxes that can occur when the owner of the corporation passes away. From an investment standpoint, by utilizing tax-deferred growth within universal or whole life insurance, corporate assets can avoid accrual taxation and can frequently outperform fixed-income investments.

Income Replacement

If you are in the early stages of wealth accumulation, insurance can be a low-cost way to create a financial safety net. If an income earner is no longer able to work, certain insurance products can provide a supplemental stream of income. These types of solutions are designed to give you and your family protection from unforeseen events such as Disability and Critical Illness.

If you are diagnosed with a critical illness that is listed in the insurance contract, you can qualify for a lump sum, tax-free payment. This payment would protect the policyholder and their family from major changes in their lifestyle as well as the financial burden of managing and surviving the illness.

Disability income protection is designed to replace a portion of your income should you become unable to perform the regular duties of your occupation. People frequently obtain disability insurance policies through their work, similar to how they obtain life insurance. It is critical to review group coverage in order to fully comprehend the coverage in place.

The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Financial Inc. (Wellington-Altus) is the parent company to Wellington-Altus Private Wealth (WAPW), Wellington-Altus Private Counsel Inc. (WAPC), Wellington-Altus Insurance Inc. (WAII) and Wellington-Altus USA. Wellington-Altus (WA) does not guarantee the accuracy or completeness of the information contained herein, nor does WA assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

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