Why Buy Life Insurance?
Common questions when considering life insurance
Many people like you ask five questions before getting life and health insurance from Taxevity. You'll find 10 answers for each.
Q1: Why should I buy insurance?
- We bear a heavy tax burden in Canada - life insurance receives favourable tax treatment, combining benefits of a principal residence (tax-free benefit at death), RRSP (tax-sheltered growth on savings inside the policy), TFSA (tax-free access) and an investment line of credit (potential for tax deductions)
- Allows much larger deposits for tax-sheltered growth than an RRSP or TFSA
- Life is uncertain - you don't know when you may die, which can leave your family vulnerable
- Life insurance provides funds at death to provide for your family
- Life insurance provides funds to pay the taxes due on your death (e.g., on RRSPs, probate)
- Life insurance skips probate tax and public scrutiny: proceeds go directly to your heirs, bypassing your will and estate
- Life insurance provides creditor protection when properly structured
- Your beneficiaries will thank you
Q2: Why should I buy from you?
- Actuaries are specifically trained to measure and manage risk
- Technical expertise: designed and supported the types of products sold today
- Field expertise: trained and supported advisors and most national organizations that sell investments and life insurance
- Consulting background: know how to listen and analyze your situation to propose optimal solutions for you
- Committed to helping the community via blogging, videos, etc.
- Continual learning: know what products are coming up, changes to existing products, changes in the industry, etc.
- Satisfied clients (see testimonials on LinkedIn)
- Get a second opinion on your current life insurance free of charge (insurance audit)
Q3: Why should I buy from Taxevity?
- Specializes in life, health, disability and long-term care insurance (no investment or other advice; no financial planning)
- Collaborates with your current advisors in accounting, investing and law
- Extensive team for help in other areas (referral network) - provides access to other advisors if you lack them or want changes
- Built on solid experience in product design and marketing
- Using technology to help you 24/7 via web meetings
- Reveal rather than conceal (e.g., this website and these answers are an example)
- Access to unique solutions
- e.g., RBC Security Fund is available from less than 25 advisors in Ontario
Q4: Why should I buy at your price?
- Prices are set by the insurance companies
- the same for all advisors, regardless of credentials and experience
- No discounts available legally in Ontario
- protects you from unscrupulous advisors who sell only on price and do not provide ongoing service and maintenance
- Products available from a range of companies (not restricted to products from a particular insurer)
- Products selected for long term reliability and performance
- Free extras such as the Marketing Reflections eNewsletter and blog posts to help you continually
- Ongoing contact
- No charge for the time spent with you and on your behalf
- You get access to specialized underwriters to help get your case issued under the best terms
Q5: Why should I buy now?
- Prices increase as you get older
- If your health deteriorates, you may become uninsurable or have significantly higher premiums (up to 300% more)
- The underwriting process often takes 2-3 months - you're not protected until you're approved and pay the first premium
- You have a 10-day money-back guarantee provided by all insurers
- The free underwriting process may uncover medical issues you can address now before a symptomless condition becomes grave or incurable
- Tax rules change but inforce life insurance policies are often grandfathered
- You won't value what you buy until later (but get peace of mind in the interim)
- Generally funded by reallocating a small portion of your investments rather than from cash flow