mortgage insurance

Let’s Talk Mortgage Insurance

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Today I want to talk about the importance of mortgage insurance and why you should be discussing it with your financial advisor. Even if you don’t yet have a mortgage, it’s important to know for when you do start looking, or to inform your loved ones of what can happen if your mortgage isn’t insured.

What is mortgage insurance?

Mortgage insurance is the bank’s version of life and disability insurance. If a person becomes sick, injured, or passes away, the insurance will pay the mortgage to the lender on behalf of the individual.

Why is it important to have?

If you pass away, do you want your insurance to pay loved ones or have that money taken away to pay off lenders? Mortgage insurance ensures that mortgages are paid so that loved ones can still receive those financial benefits.

It’s also important because the insurance isn’t portable. This means that if you decide to renew your mortgage with another lender, you now have to prequalify for your insurance with that new lender. If your health has declined since then, that could be a huge problem.

In most cases, you’re actually paying a higher premium with less benefits. I highly suggest watching “In Denial” from CBC Marketplace. The story goes into detail about mortgage insurance and some important things to look out for.  If you have a mortgage or are looking to get one, it’s a must-watch.

Bottom line: talk to your financial advisor about mortgage insurance. Make sure you’re doing a needs analysis to make sure you’re seeing the big picture. Be informed and stay educated when it comes to mortgage insurance. It can make a difference between having nothing and having everything – make sure you’re covered when it comes to paying out lenders.

Scroll to the bottom and let us know in the comments below if you want to know more about mortgage insurance or if you have any feedback on our new show.

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long term care insurance long term care coverage

When to Buy Long Term Care Insurance

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This week, I’d like to share a story about my family. My grandma lived a healthy life: she exercised, ate well, and had a great attitude. We like to joke that she walked faster than all seven of her grandchildren!

In her 80s, however, she started showing signs of dementia. She was able to stay in her own house for four years. However, eventually she needed more care than staying at home could provide. Because of the 24/7 care she needed, she moved into a long term care facility. During the two years there, we had to hire a nurse to give her the care she needed.

Our family struggled with the cost of that care. Although my grandma was financially stable at the beginning of her illness, her assets and savings were quickly used up.

What is long term care insurance?

As a financial planner, I knew long term care insurance would be the best option. It provides a monthly income to ensure that you or your loved ones are taken care of during times of need.

When should you get long term care insurance?

The best time to get long term care insurance is when you’re young and healthy. If you’re in your 50s or 60s, you should get it right away. The longer you wait, the harder it is to get coverage. Premiums skyrocket.

A very important note to keep in mind:  Most Long Term Care Insurance providers are taking their stand-alone policy off the market by end of June, 2018. Talk with Taayla NOW, or get in touch with your advisor, to get the best long term care protection in place.

It is easy to go through your savings during illness or retirement. If that’s a concern, ask us about long term care.

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Then let us know in the comments below if you learned something new about long term care insurance or if you have any questions that you’d like me to answer.

Registered Retirement Plan RRSP

What are the benefits of having an RRSP

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What are the benefits of contributing to a Registered Retirement Savings Plan (RRSP)?

A significant amount of money that you would otherwise send to the CRA in the form of taxes can be saved by contributing to an RRSP.

What is an Registered Retirement Savings Plan (RRSP)

A Registered Retirement Savings Plan, or RRSP, is a particular kind of investment account designed to help Canadians save for retirement. Within this account, it’s possible to hold a number of types of investments, like mutual funds, savings accounts, stocks, bonds, and a few others. Special tax benefits are applied to these investments.

What are the benefits of having an RRSP?

At the end of the tax year, the CRA will issue a refund cheque on your income tax overpayment based on the amount of your income you contribute to your RRSP investments.

When you are retired and no longer making a full income, you can take out the money from your RRSP at a lower tax rate than when you were making a full income.

Buy your first home, or pay for your education by using your RRSP.

You can also withdraw money for certain things, like a down payment on your first home, or to pay education tuition. Some stipulations apply.

See your Certified Financial Planner to find out how to maximize your contributions, utilize the homebuying or education tuition program. Or get in touch to have your particular situation reviewed by a Certified Financial Planner.

Scroll all the way to the bottom and let us know in the comments below if you learned something new about RRSPs today, or if you have any feedback on our new show.

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Disability Insurance

Living Benefit Coverage

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Disability insurance can provide you with a benefit that is usually 60% to 70% of your annual salary in the event that you are disabled and are unable to work. Many companies offer their employees this type of insurance through a group disability plan but there are many individuals who do not have access to this type of plan.

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Engrace Financial Retirement

How to create a guaranteed lifelong income

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“Buying a prescribed annuity? Act Fast!” is an insightful article on using a prescribed annuity as your financial vehicle of choice to create a guaranteed lifelong income.

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Engrace Financial The Problem With Canadian Financial Advisors

The Problem With Canadian Financial Advisers

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A recent study originating in the United States concerning financial advisers found that less than forty percent of these advisers had acquitted themselves with a formal plan. Unfortunately, this state of disorganization also seems to be the case in Canada.

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Engrace Financial Retirement Today Rowboat

Retirement Planning with Today’s Perspective

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When can I retire? This is one of the questions that I am asked most by clients on retirement planning. The answer is as diversified as are the individuals asking and the influences on that decision just as mixed.

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Referrals

Your Referrals Are Truly Appreciated

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I want to thank you for the trust you’ve put in me over these years and promise to continue to do my best to serve you, be a compassionate listener, and provide you with the very best advice.

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Engrace Mortgage Insurance

Mortgage Insurance As A Bank Product

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Mortgage insurance seems like a responsible way to ensure your family will be cared for should anything happen to you and it fits easily into any budget. But is it really?

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