Life Insurance
In a letter to Jean-Baptiste Leroy in 1789, Benjamin Franklin wrote “… but in this world nothing can be said to be certain, except
death and taxes.”
Personal Life Insurance
While death is certain, it is also unknown. You have goals in life that you hope to achieve. What if something prevented you from reaching those goals? You may have family and dependents that would suffer a hardship if you are no longer there to provide for them. Life insurance can protect yourself, your loved ones and your assets.
Do You Need Insurance?
You might ask yourself these questions:
- How much do I contribute to my household financially? Would my surviving dependents be able to care for themselves?
- Do my parents, grandparents or siblings depend on me financially?
- Do I want to leave my family without the burden of debt from a mortgage or loans? Would my home have to be sold to sustain my family?
- I put money aside now for my children’s education. Will there be sufficient funds for my children to attend college or university if I am no longer contributing?
- Is there money I wish to leave to family members or charitable organizations?
Everyone’s need for life insurance is different. There isn’t a one-size-fits-all policy. Your own situation determines
if and when you should purchase life insurance and also
how much you will need.
Completing a financial needs analysis, provides a snap shot of your current financial situation, including your assets and debts, your personal situation, your goals and the needs of your family.
Business Life Insurance
Many challenges are faced in the management of your business, from the day-to-day concerns to achieving long-term success. Protecting all that you have worked hard for may be one of those concerns.
Why purchase business life insurance?
How will my business be affected?
Will my business continue if I die?
Buy-sell agreements – provide for the transfer of ownership of a business under various circumstances such as death, disability, retirement or disagreement. Proper funding is needed to ensure funds are available to purchase the shares of a deceased or disabled owner or partner when needed.
Life insurance guarantees that money will be available when it’s needed and is a cost-effective method for funding a buy-sell agreement.
Will my beneficiaries have sufficient funds to cover potential capital gains tax liability built up in my business?
Capital gains tax is the tax associated with the increase in the value of a business, generally payable upon the death of the shareholder or business owner.
Life insurance can provide your beneficiaries with the funds needed to pay estate taxes.
Can my business sustain a business interruption if a key person dies?
Key person insurance provides funds upon the death of a key person in your business to cover unexpected expenses (such as recruiting or training costs) arising as a result of their death and a need to cover a loss of cash flow due to a reduction in sales.
Life insurance can provide immediate tax-free cash to help the business replace a key person or employee.
Does my bank require collateral insurance to cover repayment of a business loan in the event of my death?
Life insurance premiums for collateral insurance may be tax deductible.