In a world of way too much tax there still a tax strategy that Canadians should take advantage of. This strategy is to decrease your tax burden, and the tactic is purchasing a life insurance policy that allows for tax deferred growth.

Many insurance companies have life insurance contracts that can be used as a tax advantage and an investment tool.

The basic concept is to pay as much money for the least amount of insurance. This is not to say that the insurance portion is overpriced, but rather the over funding goes into a separate account inside the policy and any growth is tax deferred.

This type of policy can be very advantageous to the owner. RRSPs allow for a limited amount of saving and if you want to save more money you get no further tax advantage.

Most Canadians approaching retirement have worries about having enough money. They have worked hard for many years, hoping to retire to a lifestyle of traveling, entertaining and living well.

Considering the ups and downs of the stock market it would be wise to diversify your retirement saving.

Over-funded life insurance can be an excellent solution. First of all you need not worry that you will leave nothing for your heirs. You can spend your retirement money on yourself and the death benefit from the life policy will always leave a legacy for those loved ones you leave behind.

If you are maximizing your RRSP contributions and still looking for a tax friendly way to save call us today for free quotes and detailed explanations of how an over funded life insurance policy can work for you.

Rather then going to a captive agent (like you will find at the banks or a specific insurance carrier for example) please consider speaking with www.life-insurance-quotes.ca. We will compare and contrast the competing insurance company’s offers and find you the best deal.

Some other important advantages exist within a program like this, including but not limited to, tax free growth. No income tax is due on growth or interest earned on cash values in a life insurance policy, and no income tax is due on loans from the policy. A loan can be made on the cash inside your policy and it is generally considered a debt, not a taxable distribution.

Upon your repose and under certain circumstances the death benefit is paid to your beneficiary Tax Free and is not subject to withholding for estate taxes. It also can not be held up in estate or subject to probate fees.

Your life-insurance-quotes.ca agent, along with some advice from a pool of accountants and lawyers (who work with our agents) will assist in setting up the ownership and beneficiary designations properly.

Please note that this article is for information purposes only and should not be considered legal or accounting advice.

Thanks you for reading and please feel free to comment.

Ian Baker
The Insurance Blogger

In the last couple of years insurance companies have introduced an insurance product called Long Term Care. This product was created to protect Canadians form the cost of dealing with a loved one if they become ill and are no longer able to do the regular duties of life.

These duties include the ability for a person to care for themselves. Most long term care contracts define these functions.

Sales of the product have been sluggish here in Canada due to several factors. Canadians count on Provincial care to cover long term care cost and do not want to pay long term care premiums. Also the products require in depth explanations. Most advisers are closer to claiming long term care then are willing to learn new products and then selling the product. The average age of the insurance advisor in Canada is around 60. Why start now with learning a new product. Thirdly, there are really no long term care insurance reviews for people or agents to turn to for research or recommendations.

The most important aspect is that when you are young you do not think about long term care and when you get older the premiums become cost prohibitive.

Once again HealthQuotes.ca has the solution for most of these issues. First of all we have a young and vibrant sales force that have taken the time and effort to research the market place and can now make recommendations based on the true value of the long term care insurance company.

One of the best ways to purchase Long term care insurance is using a hybrid conversion plan. Several companies have policies that allow for a client to convert a disability insurance plan into a long term care plan once the client retires. Without getting too technical you can buy a disability insurance plan now and convert it to a Long Term Care plan at age 65.

The client gets the benefit of Disability protection while they are working and it simply coverts to a Long term care plan at a certain age or when they retire.

The key is to purchase your Disability insurance while you are still young. When you get older or if your health changes it’s too late. You buy Disability/Long Term Care Insurance with your health not your money. If you have a pre existing condition or wait until your health changes it is too late.

Based on the growing demand for health services Long Term Care planning is a must for every Canadian. Based on the conversion privileges from companies like Ontario Blue Cross, it makes great sense to cover your Disability insurance needs now and protect yourself and your family with long term care coverage for the future.

Call us today for your free no obligation long term care quote. We will compare long term care companies for you. We will inform you of long term care cost or premiums. Long term care rates can be very different so we will also provide long term care insurance reviews. It is important that you understand the product and that the insurance company understands you. We can arrange for an agent to visit you or you are welcome to speak on the phone with a trained professional. All calls are confidential and all reviews are free. When you’re ready to purchase, we can help with that too.

Don’t wait, call us today.

Thank you for reading my blog and as always we would love your comments or reviews.

Ian Baker
The Insurance Blogger.

In the past the large life insurance companies offered career opportunities for young people and recent graduates as a sales person. After a careful screening, successful recruits would be chosen from a group of trainees, and given a sales position as a "career agent".

The career agent would receive the benefit of a complete training program from the sponsoring insurance company. This would include two weeks intensive product training, along with sales concepts, presentation techniques and of course closing skills. At first the new agent would be expected to speak with friends and relatives about their need for insurance products.

This was called "your natural market" and it took a lot of courage to approach these people. Often a stigma developed and life insurance agent became the "person you do not want to talk to". Your family and friends began to hide from you because they were afraid to say no or got tried of hearing about insurance all the time.

In the eyes of the insurance company if you proved yourself in the natural market then you had what it took to be a sales person for them. The new agent would then go into the field and starting knocking on doors in their surrounding neighborhoods looking to drum up interest for sales.

After pounding the pavement for a day or two the agent would begin to book some appointment to speak to the prospect about how insurance products can work for them.

The agent would have a series of product they were expected to sell. This included life insurance, RRSP, annuities, health insurance and even group benefits if they prospect was a business owner.

The sales manager would spend time working with new agent and even go on sales call with them in order to help them learn how to present their solutions and assist in closing the sale. A successful agent would door knock during the day and book two evening appointments and if they could sell 3 or 4 deals a week they would be able to earn a decent living and support their families.

Wow, things have changed. Most insurance companies no longer offer sales career opportunities and time has become the real commodity for Canadians. Customers are no longer satisfied with one option from one insurance company. The value of having a broker shop the competing companies is what today savvy customer is looking for. Add to this the fact that people do not have the time to have an agent visit them in their homes. HealthQuotes.ca on line fulfillment capacities have become a recipe for success.

HealthQuotes.ca saw these changes coming and has taken advantage of the web as a top source for Canadians looking to purchasing insurance products. HealthQuotes.ca made its first submission to a search engine, Altavista, back in 1997. Web searches for insurance products grow everyday.

If you search for insurance quotes on Yahoo, Bing and of course Google you will find HealthQuotes.ca as a page one number one result for insurance products. Products like health insurance, group insurance, life insurance, and travel insurance all appear as a top organic listing result.

On average HealthQuotes.ca gets over one thousand visits a day from customers looking for insurance solutions.

So a new career opportunity in the insurance business has arisen. Our agents no longer spend their time prospecting. Instead they focus on helping customers with the products that they are looking for. The stigma of not wanting to speak with an agent is being dispelled by our friendly agents because they do not push the customer to purchase insurance products that they may not necessarily be interested in buying at the time. Our agents help the customer with what they are interested in rather then following the agenda of the commission hungry sales manager.

If you have ever considered insurance as career path then please call us right away. I promise you will enjoy helping qualified customers with products they know they need and are ready to purchase.

Thanks for reading and I am delighted to speak with you about your opportunity at HealthQuotes.ca.

Ian Baker
The insurance Blogger.

Life insurance a simple concept and there are really only two types, whole life and term life.  This article will focus on whole life.

The basic concept is you buy life insurance with your health not your money. If your health changes it is too late to buy insurance even if your have the money to do so.

With whole life a person can lock in a price for there whole life. Based on your age and health you will pay a premium and that cost will not change. Your premiums stay the same and the policy will pay a tax free death benefit to your beneficiary upon your repose.

Whole life is a great investment when you are young and healthy. For example a healthy non smoking 30 year old male can get $500 000 for as little as $150 per month. When you reach age 80 you will be delighted to pay the $150 premium and have a great legacy to leave your loved ones. As you get older and earn more money it will seam like the greatest bargain in the world.

If you wait to buy your whole life insurance it can become cost prohibitive. At age 80 purchasing life insurance is hard to get and it is expensive. You would need to pay $4500 per month to get $500 000 and that is if your still in perfect health.

Canadians often put off their life insurance purchase because when they get around to getting a quote it seams so inexpensive that they feel they can wait. Other reasons people use for not purchasing is that there is a stigma associated with a having to deal with a pushy agent who wants to visit them and then meet all their friends and family as. Also, they are not sure if the agent is trustworthy. They may feel uncomfortable having to say no.

To find out more about whole life insurance and how it fits into your future please call us and we will be delighted to assist. You can also get online, instant life insurance quotes any time you choose.

Life insurance has always been an important part of a financial plan for Canadians. Some Canadian life insurance companies have been around since the late 1800 and 99.9% have never failed to pay a claim. Life insurance pays upon the death of the insured and we all have an expiry date.

Recently Canadian banks have taken a more aggressive stance on entering the life insurance market. Certain banks now have great products and I welcome them to the market place. In fact our company sells life insurance for a couple of the "big five" and often they are a great solution.

However, when you’re getting coverage for your mortgage certain products offered by the banks are far inferior compared to what the more traditional life insurance companies offer.

With most mortgage insurance offered to a bank customer (who is getting a loan for a home), the death benefit follows the amortization schedule of the loan. This means that the coverage goes down as you pay off your debt. Your benefit goes down but the price you pay stays the same. A gap is created.

This gap is great for the bank as their obligation or payout drops as you pay them back. The customer’s beneficiary or estate loses out on what most people assume would be a fair policy or practice.

Buying a house is an emotional time for most buyers and they don't want anything to go wrong on the most important purchase of their life.

Banks play on your emotions and hold you as captive.  I recently purchased a new home and even though my Bank has known me for years and know very well that I sell life insurance, they pushed their products on me. When I refused coverage I needed to sign five different pages, wait and waste my time as my "personal banking" officer needed to make copies, see the manager of the branch, and possibly take a DNA sample (just kidding about the DNA) for me to get out of paying for a product that I know was more expensive and offered less coverage then I could get from as many as 20 different insurance companies in Canada.

At a certain point I felt that the loan I was getting was in jeopardy if I continued to refuse to buy their life insurance (and also what they call "mortgage disability").

As you can imagine I did not take the mortgage insurance offered by the bank, and I still got my loan.

I would advise all Canadians to refuse the bank’s offer until they have at least checked out what else is available. Trust me, if you are approved for a loan, the bank won’t take it back if you refuse their insurance products.

It is real easy to get life insurance quotes at our web site. You can instantly see offers from many competing insurance companies and even apply online or over the phone!

Ian Baker,
President,
HealthQuotes.ca Inc.
www.life-insurance-quotes.ca

The January earthquake in Haiti, followed shortly afterward in February by a major earthquake in Chile has shown just how charitable donations are essential and necessary world-wide. Haiti was struck by the most powerful earthquake it has seen in a century with a magnitude of 7.0. Chile was struck by a very destructive 8.8 magnitude earthquake. These 2 earthquakes alone left millions of people homeless and without food and water; thousands have sadly also died.

Fortunately, Canadians and people from all corners of the world swiftly began to donate money, as well as medical supplies and food. People also donated their time and expertise, from soldiers to doctors, nurses, etc. Due to the generosity of people all across the world, lives were saved and rebuilding will be able to begin.

The Canadian Revenue Agency offers tax deductions for donations to qualified charities as an extra incentive for Canadians to donate money and/or property. Donations that are made to Canadian registered charities or other qualified donees may help reduce the amount of income tax paid at the end of the year; make sure the charity qualified by visiting the CRA website. The Income Tax Act permits qualified donees to issue official donation receipts for donations received; qualified donees include:

•    Registered Canadian charities;
•    Registered Canadian athletic associations;
•    Tax-exempt housing corporations resident in Canada that only provide low-cost housing for seniors;
•    Municipalities in Canada under proposed legislation for gifts made after May 8, 2000, municipal or public bodies performing a function of government in Canada;
•    The United Nations and its agencies;
•    Prescribed universities outside of Canada;
•    Charitable organizations outside of Canada to which the Government of Canada has made a donation to in the tax year, or the previous tax year;
•    The Government of Canada, a province and/or a territory.

In order for a donation to be eligible as a tax deduction, ownership of property (cash, gifts in kind such as goods, land, securities, etc.) must be transferred voluntarily. Donations can be in the form of money, securities, land, properties, as well as life insurance policies. Gifts of services are not considered property and do not qualify for an official donation. If the registered organization/charity provides something of value in return for a monetary donation, the eligible amount of the donation for income tax purposes is usually reduced. The amount will be reflected on the official donation receipt; the monetary value of the gift to the donor will be subtracted from the amount donated. Currently, the first two hundred dollars donated is eligible for a federal tax credit of 15% of the donation; the federal tax credit increases to 29% of the amount over two hundred dollars. Donors are also eligible for a provincial tax credit; this varies among provinces.

To learn about how to use your life insurance to donate to charity, please visit our page on Charities and Life Insurance which has in-depth information on this topic.

Once again, tax season for Canadians is drawing near. As the past 12 months have been financially challenging for most people, choosing the right financial tax options are especially important this year. The deadline for getting a Registered Retirement Savings Plan (RRSP) is coming up; many people now have to decide whether or not an RRSP is the right choice for them.

Canadians can now choose between a RRSP and a Tax Free Savings Account (TFSA). Each option offers its own advantages, as well as disadvantages. Having detailed knowledge about both choices is vital for making the best financial decision for your situation. As financial situations can fluctuate, what was the best choice last year may no longer be the best choice for this year; don’t simply rely on what has worked in the past.

The TSFA has become a popular financial planning tool since it was introduced. The TFSA is being recommended for those who make forty thousand a year and under; at this income rate there won't be very much saved on taxes. As well, there is a possibility of being penalized later on when a large amount is withdrawn from this retirement savings. The TFSA does not penalize any withdrawals at any time, making the money much easier to access if it is needed. The government declares how much can be withdrawn from a RRSP; these withdrawals are then considered income; money withdrawn from a TSFA is not.

When making under forty thousand the TFSA is considered the better savings plan; however when the yearly income grows past this point, this money can be withdrawn and then invested into a RRSP. Conversely, for those making the higher income now with the understanding of making significantly less in the retirement years, the RRSP can be the better savings tool then; it can later be withdrawn and then deposited into a TFSA.

It is important to remember that a healthy financial plan includes the fact that your planning must be flexible in order to accommodate the financial fluctuations that occur. Different financial savings products do become available; research your options every year to find out what is now available that would be beneficial for you. As well, during different stages of life, a different financial plan and budgeting will be needed. Such things as buying a home, starting a family, etc. can all have a major impact on our finances, as well as our financial savings strategy. Consult with a financial advisor or another professional who is educated and well versed in the financial field.

While some people view Valentine's Day as a day that focuses on love and romance, others may view Valentine's as nothing more than a time to make money by companies trying to cash in on 'yet another holiday'. Regardless of what your personal views about Valentine's are, it does seem that a 'successful' Valentine’s does seem to correlate with the amount of money spent. Some people want to have that 'one special night' that can easily run up a huge bill.

Spending a large sum of money on Valentine;s might also not fit in with the couple's yearly budget as. For couples who are planning to buy home, a car, etc. or planning their wedding, financial obligations may mean cutting back on other expenses. Many Canadians also have student loans that have now become payable as well. So while the romantic side of a person may be to spend the extra money and 'go the extra mile', i.e. buying a larger diamond ring that really isn't financial feasible. The more financially responsible thing to do may be to buy a'‘nice, but not extravagant' ring and use any extra savings towards the wedding, honeymoon, purchase of a home, car, etc.

While openly and honestly discussing finances may not be considered very romantic, it can be more beneficial in the long term. It is also important to realize that the larger diamond companies are at their high point in the advertising season; for them this is the number one season for the high sales items. The same also rings true with other expensive items such as cruises, honeymoon getaway packages, etc. This means that for approximately a month before Valentine's Day, the media will be bombarded with advertisements and commercials regarding all the romantic things to do and buy, as well as spending money to impress the other person. But it is also important to understand what each other considers to be a necessity and what is considered a luxury. For some it may be more important to save for a down payment for a home, for some it will be getting out of debt as quickly as possible, and for some others as well, it may be buying a new car or going on an expensive vacation.

Having a successful financial plan may be a little tricky and some hard work, but it doesn’t have to take the romance out of the relationship. By both people taking an equal share in the financial planning, both parties have an equal stake in the couple’s financial health. This can be a great opportunity in making the future plans meet realization, and therefore can actually be a positive bonding experience for both.

When it comes to reading the small print in financial contracts, very few people actually bother to read the document in whole. Whether the paperwork relates to business or personal finance, being able to have comprehensive understanding of the information included is inherent to making the best financial decisions possible. For those who cannot fully understand the language, and/or those who have difficulties with reading may suffer financial consequences if they sign a contract that is not in their best interests. For those who have competent literary skills, many tend to lose interest after a couple of pages and discontinue reading the contract.

According to the Canadian Council of Learning, almost half of Canadian adults have low literacy skills. This non-profit organization estimates that 12 million people in Canada are below the internationally accepted standard of literacy that is required to effectively cope in a modern society. The Organization for Economic Co-operation and Development defines literacy in five different levels; they report that the average Canadian score is 2.5 within this range. The five different levels are:

•    Level One: Very poor literacy skills. Individuals operating at this level of literacy may not be able to correctly determine medicine dosage as given on the packaging, for example.
•    Level Two: The ability to deal with only simple, clearly defined materials that involve uncomplicated tasks. Individuals operating at this level of literacy may have developed everyday coping skills but are challenged with the acquisition of new skills. Individuals at this level may find it difficult to learn new job skills, for example.
•    Level Three: The ability to adequately cope with the skills required for everyday life and work in an advanced society. Individuals at this level of literacy have about the same level needed to finish high school and enter college or university.
•    Levels Four and Five: Very strong skills. Individuals at this level of literacy can successfully process complex and demanding information. Individuals who are in this range generally experience less unemployment, earn more money and rely less on government transfers.

There is no common denominator when it comes to literacy skills. People with low scores can be seniors or young adults, employed or unemployed, etc. Surprisingly, twenty percent of university graduates have literacy skills that score below level three. Many who score low have not completed high school, although some have pursued some form of post-secondary education.

It is important to fully understand and comprehend any and all forms of financial transactions. This includes life (and health) insurance policies. When purchasing life insurance coverage, make sure to read all written materials that are provided, and have a good understanding of what those materials mean. For individuals who may have problems understanding these types of documents, make sure you have someone who is trustworthy to fully explain the material before signing the contract. Individuals may also want to inform their insurance broker that they need further clarification of the contracts and policies as well.

As Canada is now facing an aging population, insurance companies are now focusing on preventative rather than reactive measures when it comes to potential health issues. Insurers are now building comprehensive databases of health information for the clients that they insure. These databases contain the details of health issues that can range from drugs that are prescribed, chiropractic visits, etc. This information will be used for the purposes of being able to more accurately predict those who may be at risk of having and/or developing major health issues, i.e. chronic diseases.

By focusing on preventative measures, insurers hope to be able to effectively intervene before the health problem becomes severe, which usually also means more expensive, in order to help the individual take action to either manage and/or prevent the health condition from becoming worse. Not only is this strategy beneficial to the person, but also to the insurance company by keeping costs lower. Some insurers are also planning to take even more immediate action; Manulife Financial is implementing a new program that will benefit providers by setting up a workplace clinic which will be able to provide employees with the resources to test such health concerns as cholesterol levels, blood pressure rates and body mass levels.

One of the issues that insurers are hoping to accomplish is to quantify the value of good health by attaching a dollar value to activities that promote a healthy lifestyle. By using this strategy, insurers hope to be able to convince employers to establish wellness programs for their employees that would ultimately result in the cost of employee benefits being reduced. This would ultimately save money for not only the insurers, but for the business, and of course the employees benefit from being able to access services that improve their health.

With new medical breakthroughs and treatments, Canadians now have a longer lifespan. However, living longer does not necessarily mean that this population is living a healthy lifestyle. Medical costs tend to rise for people as they age; they also tend to be more expensive for health conditions that are more advanced. Healthy living as well as early detection practices are beneficial not only for the individual, but for those who cover these expenses.

As life and health insurance rates are based in part by health status, premiums are lower for those who are healthy. Consult with your employer about ways to promote health in the workplace, and ways to encourage these practices.