April 24th 2019

  Understanding life insurance
  
We live in a world in constant evolution where the pace of life is sometimes hectic. The primary goal of life insurance is providing financial stability to survivors when a loved one deceases. Generally tax-free, a life insurance policy death benefit will help them cope with their new situation.

Business Owners
Your shareholder agreement likely includes a clause that forces you to buy back the shares of a deceased shareholder at fair market value. Where will this sum come from? The death of a shareholder will undoubtedly disrupt the operation of the company!

A life insurance policy on the life of a shareholder will solve the situation. Insuring the life of every shareholder benefiting the company will help it recover from this untimely death.
 
Individuals

Last expenses
A sudden death can leave the heirs, even of a single person, with a lot of debts to pay off: funeral expenses, car loan, credit cards, personal debts. The money received from the insurance carrier will help to wipe them out.

Mortgage and debts
You can purchase a specific life insurance policy to pay off your mortgage and personal debts, thus reducing the financial stress of your loved ones and allowing them to keep the family home.

Income replacement
A sudden loss of income can have a significant negative impact on surviving family members. The death benefit from a life insurance will help them maintain their lifestyle.

 
Life insurance can help you even while you’re alive

Tax free savings
Some life insurance policies (whole life) accumulate cash values ​​that can be used to pay for unexpected expenses or used at retirement time.

The universal life insurance combines a life insurance segment and an investment segment. You can choose to put your money among several types of investments, in segregated funds, for example. This type of insurance, despite its name, is not for everyone.

Estate planning
The transfer of assets from one spouse to another is tax-free. It is not so when transferring to children. When the remaining spouse deceases, the assets are presumed liquidated and the resulting taxes are payable in the very short term.

This situation may compel the children to sell some assets at a discount price in order to pay these taxes.
A second death life insurance provides the children with a fair amount of money to pay these taxes.

I encourage you contact me for further questions and  discuss your needs in greater detail.
  Mauro DiCesare, B.Comm, Pl.Fin
Planificateur Financier/Financial Planner 
Financial Security Advisor/Conseiller en Sécurité Financière avec Groupe Financier Finvest Inc.
Mutual Fund Representative/Représentant en épargne collective avec Investia Services Financiers Inc.
514-376-7771