Pay Attention to Your Beneficiary Designation
It’s more important than you think
Naming a beneficiary is a valuable feature of life insurance and segregated funds policies so it is important to carefully choose your beneficiaries.
Estate – the default choice
Many people choose to name their “estate” as their beneficiary. Although this is an easy short-term solution, it is important to review the risks of doing this. If you are stuck for a significant “other” beneficiary, don’t forget to change it to a more appropriate option later. Why?
- The proceeds will be subjected to probate fees and the benefits received will be co-mingled with all the other estate assets which may be exposed to various third parties.
Whole Life: A Separate Asset Class
The recent developments in investment markets and the volatile performance that has resulted have brought about a new appeal to an old workhorse. For investors looking for a diversification in their investment portfolio and a more tax efficient fixed income investment alternative, a compelling argument can be made for the use of Whole Life Insurance.
Why is Whole Life Insurance a good investment?
- The tax advantaged steady growth, combined with significant estate benefits are the primary reasons why Participating Whole Life is now being thought of as a new investment class.
Group Insurance – Only Part of the Solution
Ownership of individual life insurance at its lowest level in 30 years
The Life Insurance and Market Research Association (LIMRA) 2013 study shines a light on a developing problem for Canadian households:
- Individual ownership of Life Insurance was at its lowest level in 30 years;
- 3 in 10 households did not have individual life insurance at all;
Twelve key documents you need to gather
By Brenda Spiering, Editor,BrighterLife.ca
Can you imagine what would happen if you died and your beneficiaries didn’t know where to find your will? Or your money?
It happens all the time according to Jim Yih, author of the personal finance blog, retirehappyblog.ca: “When someone dies, there are a whole bunch of questions that need answers but the only person with the answers is not here anymore.” You really love your family and friends, says Yih, so take the time to get your estate organized so you don’t leave them with a big mess to sort through during such an emotional time. Read more 
Is it Time for your Insurance Audit?
Has it been a while since you last looked at your insurance portfolio? Are you a little sketchy in your recollection of all the coverage you have and why you have it? Are you uncertain as to whether or not your portfolio reflects your current situation? If this is the case, this might be the ideal time to have an audit of your insurance policies. Circumstances can change over time and making sure your protection keeps pace is a worthwhile exercise.
A comprehensive audit should review the following:
- Is the total death benefit of your life insurance appropriate to your needs? A current capital needs analysis can help to determine this.
