Critical Illness for Families with Children

Financial Planning: Critical Illness for Families with Children

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In the latest Street Smarts with Taayla video, I’m discussing the ways you can take preventative measures to protect your family in the instance that your child falls ill with a critical illness. Parents will do everything they can to protect their children from harm. But most times, that doesn’t include envisioning a future where their child falls critically ill. While this is an uncomfortable topic, it’s an important one, as the repercussions of a critical illness can significantly impact your family in many ways.  

The Impact of Critical Illness

It’s hard enough to imagine ourselves in this situation, so how can we even entertain the idea that it could happen to our children? When I talk to parents about critical illness insurance for their young ones, they don’t usually see the need for it. However, with over 900 new cases of children being diagnosed with cancer each year, I believe it is important to help families prepare for the worst case scenario.

Some of the challenges that can result in financial stress include:

  • Alternative medicines that can add up to hundreds of dollars each month.
  • The need to hire extra help to help around the home.
  • Loss of income revenue or the ability to work due to emotional or psychological distractions.
  • Having to take time of work to be with your child at home, or in the hospital.
  • Putting retirement or travel savings plans on hold to pay for medical expenses.

Consider Critical Illness Insurance for the Family

The emotional and financial strain for families with sick children can go beyond a few months into years of hardship. This is why I urge parents who have coverage for themselves to consider getting critical illness insurance for the rest of the family. Critical illness insurance for your children is valid for the rest of their lives, even as grown-ups. While it may not lessen the heartache of the situation, a critical illness insurance plan can help parents focus on what’s most important – the health of your child.

Thank you for trusting me to speak on this difficult subject and I hope that you are encouraged to make the best decision for your family; to cover all your bases and focus on living an excellent, secure life!

I’d love to hear your feedback, or if you have a similar story, please share with us in the comments below! I will do my best to help support you through it. Please like and share this video, and subscribe to our channel: Engrace Financial Solutions, financial success made simple.

 

Long Term Disability

Is Long Term Disability the Best Option for Me?

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Always protect your most valuable assets. These include our homes, our cars, and most importantly our Human Life Value – the ability to earn an income. A Long Term Disability plan establishes financial security and protects against losses in the instance of an injury or illness, that prohibit an individual from working.

Our most valuable asset: financial security

Picture this. You are currently 40 years old and are earning $100,000 annually. If we calculate your gross earnings for the next 15 years, the total sum would equate to $2.5 million. At the age of 65, your assets will have grown substantially. The are huge risks associated with this $2.5 million asset. What can you do to protect this?

Long Term Disability: is right for you?

Let’s use two different scenarios to explain the benefits of a Long Term Disability plan. Let’s say Job A and Job B are both the same, each earning $100,000 per year. However, Job A does not have a Long Term Disability plan. Let’s say this person got injured severely and are now unable to work. Since they did not have a Long Term Disability plan, their source of income would be reduced to nothing, while they were away from work.  

Let’s say Person B is on a Long Term Disability plan. Since they’re on the plan, their annual earnings would be reduced to $97,000. However, if this person were to be injured or succumbed to any illnesses, they would be protected by their plan. As a result, they would continue to receive a monthly income, around $5,000. Once that individual returned to work, they would receive 50% of the income that was set aside while they were gone.

While most people may choose a Long Term Disability plan, others might fancy the option of being self-insured.

A Long Term Disability insures your most valuable asset and is a smart and safe way to create financial security. Would you buy a house without home insurance? Or drive a car without auto insurance? Probably not! So why wouldn’t you do the same for your most important asset?

Need help making the right decision? Let us help!

Make smart decisions today! Talk to your Financial Advisor to discuss whether or not Long Term Disability is a probable choice for you. If you have any questions, get in touch with us! Contact Taayla today to learn about a Long Term Disability plan. Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

Whole Life Insurance Header Photo

What You Need to Know About Whole Life Insurance

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When making a decision about life insurance, it is important to understand your options. These choices include: 1) Term Life Insurance and 2) Whole Life Insurance. In my latest Street Smarts with Taayla video I focus on Whole Life Insurance, as a potential option.

Whole Life Insurance is for individuals that are making long-term plans. Are you someone with foresight and a clear vision of what your future will look like? If your answer is yes, then you might want to consider the idea and benefits of whole life insurance.

What Are the Differences Between Whole Life and Term Life Insurance?

In my previous video, I explained the difference between Term Life Insurance and Whole Life Insurance. Term Life Insurance is for individuals who need insurance for a specific time frame. Whereas, Whole Life insurance is for individuals with a long-term plan to create an asset for themselves, and having and leaving behind a legacy.

Benefits of Choosing Whole Life Insurance

Picking your best insurance option is like deciding between which places you would like to live. Some may people prefer to rent, as it is a seemingly easy and inexpensive option. Whereas others may choose to make sacrifices and buy their own home. Choosing Whole Life Insurance is like buying your own home. It creates a valuable asset, that can be used as financial leverage in the future.

Client Testimonial from the Jim Pattison Group about Whole Life Insurance

The tangible benefits of Whole Life Insurance is exemplified in a testimonial from our very own, Jim Pattison. In a letter from Jim, he talks about how  the cash value stored inside of his Whole Life Insurance policy, was able to help him get started with his first business.

Still wondering if Whole Life Insurance right for you? It depends! But before you make a decision, talk to your financial advisor about how Whole Life Insurance can benefit you.

Ready to Find the Best Option For You?

Get in touch with us! Contact Taayla today to learn how to choose the best insurance option for you.

Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

 

Term Life Insurance with Taayla

Learn All About Term Life Insurance

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When it comes to insurance options, you don’t need to feel limited. Term Life Insurance is an alternative solution that enables individual to acquire insurance coverage for a specific need and time period, at a more affordable rate.

Why is Term Life Insurance a Good Option?

Term Life Insurance is an insurance plan that focuses on the specific need of individuals. For instance, if someone is seeking insurance coverage over a fixed time period, they don’t need to be purchasing a plan with a higher cost, as this is unnecessary. Rather, individuals could acquire a Term Life Insurance plan, enabling them to accumulate savings on a cheaper plan.

Benefits Associated with Term Life Insurance?

Since Term Life Insurance is an affordable solution, individuals that choose this option are able to save money from this plan. This money could be invested into other means such as a business, a home, or even an emergency fund while your children are young.

Term Life Insurance is Comparable to Renting a Home

Term Life Insurance is like a rental, which is a cheaper, simpler expense. It can be used to cover your mortgage liability, or as an income replacement while your children are still young. However, just like renting a home, the cost of insurance also continues to increase over time.

What to Consider When Deciding on the Different Types of Insurance Plans:

  1. Do you have a temporary need or a lifetime need?
  2. Are you looking for a more affordable option today with more costly options in the future?
  3. Are you looking to make an investment in a more expensive option today with much cheaper options future?
  4. Would you rather just spend it and forget it?
  5. Or are you seeking to create future assets?

Ready to Find the Best Option For You?

Get in touch with us! Contact Taayla today to learn how to choose the best insurance option for you.

Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

 

 

 

How to Pay Off Your Credit Card Debt Faster: Snowball Debt

How to Pay Off Your Credit Card Debt Faster: Snowball Debt

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Did you know that there is such a thing as “good” debt along with “bad” debt?

Today, we’re going to talk all about debt. It’s a big issue in our society, but we’re going to bring you a solution and unravel this problem.

What is “Good” Debt?

Good debt is when you borrow to buy an asset that is appreciating, like a home. It’s an investment that grows in value or can generate long-term income. Another example is taking out student loans to pay for post secondary education. Student loans and mortgages usually have a lower interest rate compared to other loans. With student loans, your education increases your value as an employee and potentially raises your future income.

What is a “Bad” Debt?

A bad debt is consumer debt like your credit card, the most common debt amongst people. Bad debt is incurred when you purchase things that don’t give you increasing or long-term value or income, carries a high interest rate, and you’re unable to pay it off right away. For example, you purchase a high-end purse on your credit card, thinking you will just pay it off “later”, but when your statement comes in you realize you can’t pay off the balance so you leave it or a portion of the amount. Eventually that purse will cost you more than the price you paid, calculating the interest you incur, and then it’ll be out of style so it’s not at all any long term investment.

What Can You Do: The Snowball Method

What we will show you in this video is a way to pay off your consumer debts. It’s called a Snowball Method. Essentially it’s a debt reduction strategy where you pay off your debt according to smallest to largest amounts. Overtime, momentum is gained as each debt paid off. Once you pay off one debt, the budget you had allotted for it gets rolled into your next debt, hence the name “Snowball Method”.

In this video, these are the steps we use:

Step 1

List your different amounts of consumer debt, from smallest to largest, with a total of the sum. It can be a department credit card, bank credit card, and lines of credit.

Step 2

List your different interest rates involved and the minimum that you have to pay for each debt with the total amount so you can see the overall budget.

Step 3

You will want to focus on one debt at a time so that means for the first period you budget so that you can pay as much as possible on your smallest debt, and just pay the minimum for the other debts so those don’t fall behind.

Step 4

Once the first debt is paid off, you take the budget you had for that and roll it over to the next smallest debt, and continue to pay the minimum for the other debts.

Step 5

Repeat each step until each debt is paid in full.

Alternatively, people will split their budget into the x amount of debts they have so that they pay a little more than the minimum for each. However, in the long-term they will find that it takes them longer to pay off their debt, and what’s even more demoralizing is that it can take an average of 3.5 years to pay off a credit card.

You can try the Snowball Method or any other methods out there, but the point is to figure out a plan to pay off your debts because you simply don’t want that in your life.

Why Does the Snowball Method Work?

It’s actually more about behaviour modification than it has to do with math. If you start with the largest debt, it will follow you for a while. You may see the numbers going down, but eventually you may hit an obstacle that will prevent you from paying extra, and your other debts will still exist.

With the Snowball Method, once the smallest debt is paid off, it’s gone forever! You will see the momentum this method gives you and your other debts will eventually fall off as well. Stay committed to the plan, and you can succeed in becoming debt-free!

Ready to Conquer Debt?

Get in touch with us! Contact Taayla today to learn how to apply this method to YOUR debt and help you plan!

Subscribe to our YouTube channel! We will be posting new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

Street Smarts with Taayla

What is a Registered Disability Savings Plan?

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What is a Registered Disability Savings Plan?

Do you have a disability and have you heard of the Registered Disability Savings Plan?

Many people haven’t! In my latest Street Smarts video, I’m happy to share another option for people with disabilities. It’s a great way to add to your retirement and ensure you have more money for your future.

Maybe your financial advisor has told you about it. Maybe you’ve heard about it from your bank. Maybe your friends have talked about it.

But how much do you really know about RDSPs? I’m here to help explain more about this important savings plan!

Registered Disability Savings Plans is a program provided by the Canadian government

The government wants to provide more options for people with disabilities to have a more financially secure future.

This money is given through grants and/or bonds after an initial investment. There are a variety of options for that initial investment. There is a certain amount you can contribute and the government has a schedule for matching.

How much money can I get from an RDSP?

You could receive hundreds or thousands of dollars from these government bonds and grants.

For example, one of my clients named Mike initially invested $500. Within three months, he was already given $9,700 in grants and bonds.

Another example in an eight year old girl. Her parents started an RDSP for her with an initial $200. She received $6,000 in grants and bonds!

Nancy is another great example. She started with $2,500 AND ended up with $12,000 in grands and bonds.

EVERYONE IS UNIQUE IN HOW THEY WOULD QUALIFY.

What determines how much you receive from an RDSP?

RDSP amounts are based on specific qualifications. Each individual can receive a different amount depending on things like income and LENGTH OF DISABILITY.

What you receive initially may change year-to-year, depending on your income.

Your grant will be matched by your initial contribution. Your bond is qualified by a low income tax return.

How long does my money have to stay in an RDSP?

Another important detail is how long your money must stay in the plan. The money has to stay IN THE PLAN for a minimum of 10 years from the last contribution.

How do I qualify for an RDSP?

In order to qualify for a Registered Disability Savings Plan, you need a disability tax credit for when you file your tax return. This will be your first step in starting the process for an RDSP.

What if you don’t have a disability tax credit? Not a problem. Click here to find out more about disability tax credits and how to get one. 

Talk to a financial advisor to find out more details about RDSPs.

What’s the best age to start an RDSP?

Anytime! But if you’re under 50 years old and have a disability tax credit, having an RDSP is a great option to save for your retirement. Even if someone is under 18, getting the guardians to start an RDSP is a very smart financial decision.

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.

Get in touch with us!

Let’s get in touch! We’d love to answer all your questions. Contact Taayla today to learn more about RDSP. Subscribe to our YouTube channel! We post new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

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.

Get in touch with us!

Subscribe to our YouTube channel! We will be posting new video content once a month, so don’t miss an episode and get my financial tips and tricks sent straight to your inbox.

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.

Get in touch with us!

Please subscribe to our YouTube channel! You’ll get every new episode straight to your inbox.

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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