LIFE AND DISABILITY

• Annuity Products
• Critical Illness Insurance
• Disability Insurance
• Life Insurance
• Segregated Funds

LIFE INSURANCE

Life insurance is an essential part of financial planning. Becoming familiar with the basics of life insurance is the best way to make an informed decision about buying it. Some issues to consider are:

• Who will be the owner of the policy? Life insurance proceeds are included in the estate of a deceased if he or she has any incidents of ownership's in the policy.
• How much life insurance do you need? The answer to this question depends on the need fulfilled by the life insurance. While amounts needed to fund a business transfer or to pay death taxes may be readily determined, calculating the value of a human life to a family is more difficult. Consider these projected total earnings up to age 65 assuming a five per cent annual increase including inflation.
  

  Projected Total Earnings To Age 65

  Current Age Current Monthly Income $2,000 $4,000 $8,000 25 $3,044,154 $6,088,309 $12,176,618 35 $1,674,259 $3,348,518 $6,697,036 45 $833,262 $1,666,524 $3,333,048 55 $316,963 $633,926 $1,267,852

• How long do I need life insurance? The answer is based on the need for the insurance. If an individual wants to leave a legacy to the heirs, then permanent insurance is appropriate. If they have a set time on the need such as a loan or mortgage, then perhaps Term insurance would provide a more cost effective solution.
• What type of policy should be purchased? We must first determine the needs that we want met by the insurance and then look for the type of policy that best fills those needs.