Do you know the value of human life? Take a look at the little chart below. It assumed that you start work at 25, and retire at 65 and receive an annual salary increase of 3%.
Annual salary | Total life salary |
$60,000 | 4.1 Million |
$65,000 | 4.9 Million |
$75,000 | 5.6 Million |
Impressive, isn't it? Do you want to protect your family's needs or your value? As the saying goes: "Think out of the box", or change the context of your thinking.
Let's get out of the traditional context. Life insurance is more than life insurance.
What's life insurance for?
Annie Boivin in Finance Investissement writes: "When an insured person wishes to access the funds accumulated in a policy, it is possible, depending on the product, to surrender the funds, make a policy loan or assign the policy as collateral for a loan."
"If properly structured, the use of borrowings with a life insurance policy as collateral security can allow the multiplication of tax advantages such as deductibility of the pure net cost of insurance of the life insurance and deductibility of interest related to the borrowing depending on the use of the funds, while offering insurance protection."
Don't look for this on online insurance sites!
You're thinking of going into business
You and two of your buddies are in your early thirties. Tired of working for a boss, you're thinking of starting your own business. One is an accomplished salesman, you a seasoned manager and the third a production expert. "The thundering trio!
You invest a large part of your savings, renting premises and purchasing the necessary production equipment. You incorporate your project and draw up a standard shareholders' agreement.
You're off to a flying start, and within 5 years the value of your business has more than tripled. You buy new houses, cottages, cars...the good life, the fruit of your tireless work.
Then, out of the blue, your sales associate dies in a car accident. As misfortune never comes alone, not only do you lose your representative, but you also realize that your shareholders' agreement stipulates that, on the death of a partner, his shares must be bought back at their fair market value and paid to the estate. "Goodbye calves, cows, pigs.
And yet, a visit to your financial advisor could have limited the financial damage.
An expensive round of golf
With three of your friends, you cross the U.S. border to play a round of golf in Burlington, Vermont. You fall ill on the third hole. You're rushed to hospital for emergency surgery, a two-week stay and rehabilitation. Six-figure bill.
Did you know that there are insurance products available to cover you on your year-round, out-of-bounds excursions for less than a dollar a day?
Today, insurance isn't just about covering your life and salary. "Think out of the box. It molds itself to our lifestyles. The better I know you, the better I can identify the risks you run. And, above all, present you with appropriate solutions.
Isn't it time we reviewed your insurance portfolio?
We'll be happy to answer any questions you may have.