Here’s the problem

You work hard to achieve personal and financial goals during your lifetime. These include accumulating savings and investments to provide you with a comfortable retirement. But if you have to draw on your savings to pay for unexpected costs resulting from an illness, your retirement plans could be at risk.

What would happen if you had a heart attack, stroke, or cancer diagnosis? Treating and coping with a severe illness can mean high costs, which provincial or basic employee health plans may not cover.

This could mean depleting retirement savings to finance our recovery for many of us. Wouldn’t it be comforting to know that you can put protection in place today to help ease the burden of a severe illness on your family and reduce its impact on your retirement plans?

Are you a candidate?

You may want to consider a critical insurance policy if you:

• Are you a Canadian-resident taxpayer and in good health
• Have or are accumulating retirement savings that may include:
  • Registered investments
  • Non-registered interest-bearing investments, including savings accounts, term deposits, mutual funds*, etc.
• Want to protect your retirement savings

The best solution

While no one wants to think about suffering a critical illness, it could happen. And if it does, the financial impact could be devastating. By protecting yourself with necessary illness insurance, you are protecting your income and savings, so you can focus on getting better without worrying about derailing your retirement plan.

Lifecheque® critical illness insurance: helping you focus on what matters – getting better

Lifecheque is one of the most comprehensive essential illness plans available today, with four plans to choose from. With Lifecheque’s coverage, you can:

• Receive a lump-sum benefit if diagnosed with one of 24 covered conditions and you satisfy the waiting period
• Receive a gift for the early stages of some illnesses with the Early Intervention Benefit
• Get fast access to money with recovery benefit
• Have additional long-term care protection that’s built right into the policy
• Connect to the one-of-a-kind Health Service Navigator^®, providing a medical second opinion service and integrated health information and support

Here’s the problem

You have reached a level of financial success that has allowed you to accumulate more wealth than you’ll need in your lifetime. You would like to transfer a portion of this wealth to your heirs without paying much tax.

An option to consider – is the Wealth Transfer Strategy.

Many people will accumulate money to leave to their children or grandchildren by investing in an RESP, a TFSA or some taxable investment. These investments may have contribution limits, be subject to tax or may not provide the level of flexibility you are looking for. The Wealth Transfer Strategy uses a permanent life insurance policy as a tax-effective way to transfer your wealth to your children or grandchildren and provide you with control of this wealth until it is transferred.

This financial planning strategy offers:

• Life insurance protection on the life of your child or grandchild
• Tax-sheltered growth of cash value
• A tax-free death benefit at death
• The ability to transfer ownership of the policy to your child or grandchild in the future on a tax-free rollover basis
• After transfer, your child or grandchild can access the cash value as required.
• If the cash value is accessed through policy withdrawals, any tax owing is taxable to your child or grandchild, not you.

Watch the following video about Asset Protection.

Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds are sold through Shah Financial Planning Inc., the Mutual Fund Dealer.
Lotus Loans and Mortgage ltd. is the principal mortgage broker.