Anticipating the loss of primary income provider

Earning income and providing for your family's needs can be a person's most important role in life. Many insure their homes, cars and personal belongings, but fail to consider what pays for these things - their ability to earn income.

Although in many ways it's a misnomer, life insurance can take care of this potential loss. You are insuring not your life, but your potential earnings. Among the things you value, your family's future ranks high.

Death

When a primary income provider dies, the family should not have to endure financial hardship as well as the emotional trauma. Money has to be available to pay off expenses such as:

• personal liabilities
• final expenses
• taxes (in particular, covering capital gains tax liabilities on investments outside of your RRSP and unpaid taxes on your RRSP)
• an emergency fund for unforeseen expenses
• an education fund for your children
• a replacement for your future earnings.

Disability

Similarly, becoming disabled could greatly reduce future earnings. Not only would your family have to worry about most of the above expenses, but also about the costs associated with caring for you. Disability insurance is the obvious solution.

Insurance can be tailored to meet your specific needs. At the same time, life insurance provides tax-free dollars for your heirs, which may be shielded from creditors, probate fees and other costs of estate administration, ensuring both estate maximization and estate conservation.

If you would like an assessment of your potential insurance needs, our team has developed a process known as the Risk Management Review, which can examine each of the possible risks that could prevent you from living your dreams, and make a recommendation on how to minimize expenses. Please call our office to make an appointment.