Life & Financial Insurance

In a letter to Jean-Baptiste Leroy in 1789, Benjamin Franklin wrote “… but in this world nothing can be said to be certain, except death and taxes.”
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Personal Life Insurance
While death is certain, it is also unknown.  You have goals in life that you hope to achieve.  What if something prevented you from reaching those goals?  You may have family and dependents that would suffer a hardship if you are no longer there to provide for them.  Life insurance can protect yourself, your loved ones and your assets.

Do You Need Insurance?
You might ask yourself these questions:

• How much do I contribute to my household financially?  Would my surviving dependents be able to care for themselves?
• Do my parents, grandparents or siblings depend on me financially?
• Do I want to leave my family without the burden of debt from a mortgage or loans?  Would my home have to be sold to sustain my family?
• I put money aside now for my children’s education.  Will there be sufficient funds for my children to attend college or university if I am no longer contributing?
• Is there money I wish to leave to family members or charitable organizations?

Everyone’s need for life insurance is different.  There isn’t a one-size-fits-all policy.  Your own situation determines if and when you should purchase life insurance and also how much you will need.

Completing a financial needs analysis, provides a snap shot of your current financial situation, including your assets and debts, your personal situation, your goals and the needs of your family.

Do you have any of these concerns? We can help.
905-835-2417 or email us.

Many challenges are faced in the management of your business, from the day-to-day concerns to achieving long-term success.  Protecting all that you have worked hard for may be one of those concerns.

‍Why purchase business life insurance?

How will my business be affected?

Will my business continue if I die?

Buy-sell agreements – provide for the transfer of ownership of a business under various circumstances such as death, disability, retirement or disagreement.  Proper funding is needed to ensure funds are available to purchase the shares of a deceased or disabled owner or partner when needed.

Life insurance guarantees that money will be available when it’s needed and is a cost-effective method for funding a buy-sell agreement.

Will my beneficiaries have sufficient funds to cover potential capital gains tax liability built up in my business?

Capital gains tax is the tax associated with the increase in the value of a business, generally payable upon the death of the shareholder or business owner.

Life insurance can provide your beneficiaries with the funds needed to pay estate taxes.

Can my business sustain a business interruption if a key person dies?

Key person insurance provides funds upon the death of a key person in your business to cover unexpected expenses (such as recruiting or training costs) arising as a result of their death and a need to cover a loss of cash flow due to a reduction in sales.

Life insurance can provide immediate tax-free cash to help the business replace a key person or employee.

Does my bank require collateral insurance to cover repayment of a business loan in the event of my death?

Life insurance premiums for collateral insurance may be tax deductible.

Do you have any of these concerns? We can help.
905-835-2417 or email us.

Disability Insurance

If asked, What is your largest asset?, most people tend to answer with their house, car, or cottage etc.   But how were those things acquired?  Unless they’ve won a lottery, most people would say with income from their jobs or their business.

Your ability to generate income is one of your most valuable assets.

Most people insure assets like their home, car, jewelry, electronics etc., but they give less thought to insuring their ability to generate income.

Disability insurance can help protect you from financial loss by replacing a percentage of your income to help you meet your financial responsibilities if a disability prevents you from being able to work.

To learn more about disability insurance coverage, call 905-835-2417 or email.
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Critical Illness Insurance

If you suffered a critical illness, such as heart attack, stroke or life-threatening cancer, critical illness insurance can complement the benefits available through a disability insurance plan. Critical Illness insurance pays a one-time, lump-sum benefit to help with unexpected expenses such as medical treatment or drug costs not covered by the health care system, time off work for you or a family member or other costs associated with recovery. The lump-sum benefit can be used when you need it most and may limit your need to tap into other savings.

When’s the best time to get disability and critical illness insurance?

The most affordable time to buy disability and critical illness insurance is when you are young and healthy. These forms of insurance can provide value at many stages of life, because of the fundamental protection each provides and because each can be tailored to meet changing needs and budgets.

To put income plans into perspective

…today, that can help protect your lifestyle, financial goals and allow you to focus on your future. Call us at 905-835-2417 or email to learn more about critical illness insurance needed to reduce life’s risks.

Many people have coverage through their employer for health care costs.  For those who don’t, the costs can be substantial.  While OHIP covers physician visits and in-hospital care, costs for things such as drugs, dental, and rehabilitative care can severely impact your finances.  Benefits under an individual health insurance plan, may also include vision care, services of registered specialists and therapists, hearing aids, prosthetic appliances and medical equipment, ambulance services, homecare and nursing, travel emergency medical and more.   At C. M. Steele Insurance Brokers, we can design a plan to meet your individual needs.  Call to find out more. 905-835-2417 or email us.

If you live in Ontario and are covered by OHIP, OHIP recommends that you buy private health insurance before leaving Ontario to cover any uninsured services you may need, to ensure you are protected if the unimaginable happens. Call 905-835-2417 or email us.

While travelling outside of Ontario, but within Canada, you will be covered for some of the same services you’re covered for in Ontario including:

• physician services (e.g. visit to a walk-in clinic)
• services provided in a public hospital (e.g. emergency, diagnostic, laboratory)

Any service or treatment you receive in another Canadian province or territory must be medically necessary for it to be covered by OHIP.

Services that are not covered by OHIP in another Canadian province or territory include:

• ambulance services (including transport and paramedic)
• prescription drugs and other drugs given outside a hospital
• home-care services
• fees charged by private hospitals or facilities
• diagnostic or laboratory services outside of a public hospital
• long-term care or residential services
• assistive devices (e.g. prosthetics)
• services not covered in Ontario (e.g. cosmetic surgery)

While travelling outside of Canada, the amount of coverage provided by OHIP is further limited.

Doctor services

OHIP will pay whichever of the following is less:

• the actual amount billed by doctor(s) who treated you outside Canada
• rates listed in and paid to Ontario physicians in the Ontario Schedule of Benefits for Physicians Services

Emergency outpatient services

OHIP will pay whichever of the following is less:

• up to $50 (Canadian) per day
• the amount billed by the hospital

Emergency inpatient services

OHIP will pay up to:
$400 (Canadian) per day for services provided in:

• an operating room
• a coronary care unit
• an intensive care unit
• a neonatal or pediatric special care unit

$200 (Canadian) per day for lower levels of care

Travel insurance can cover more than emergency medical expenses, such as emergency travel assistance, return of a vehicle, or emergency transportation including an attendant and even Identity Fraud Recovery etc.  Optional coverage can provide for trip cancellation or trip interruption, AD&D, or flight accident etc.  Travel insurance may be purchased to cover a single trip or on an annual multi-trip basis.  Talk to us to arrange for the coverage that is right for you and your family. Call 905-835-2417 or email us. You can also submit your information here and we will contact you.

A Registered Retirement Savings Plan (RRSP) is a savings and investment account registered with the Canadian government, which provides for tax deferral whereby contributions can reduce your tax now to grow your investment to fund retirement.  When funds are withdrawn in the future, they do become taxable.

Investments made under contract with a life insurance company have benefits not recognized by other financial institutions.  As an example, where there is a named beneficiary funds may be protected from creditors.  Also, with a named beneficiary, upon death the funds generally would not pass through the Estate and therefore not be subject to probate fees, since the beneficiary designation with a life insurance company supersedes the Will.

You can invest in segregated funds, guaranteed interest options, and a daily interest option.

Segregated funds unlike mutual funds provide maturity and death benefit guarantees.  You do pay an additional fee for this insurance protection and you do have to hold your investment for a certain length of time (usually 10 years) to benefit.  Investments can be setup on a Registered or Non-Registered Account basis.

Segregated Funds – are a pool of investments kept separate or segregated from the general assets of the life insurance company.  When your premium is allocated to the Funds, Units are allocated to your Policy. Segregated funds are individual insurance contracts that invest in one or more underlying assets using a mix of investments such as stocks and bonds. A professional manager chooses investments that match the Funds goals for risk and return.  You can redeem your fund units at any time.

3 Advantages of Segregated Funds

1. Principal guaranteed – Depending on the contract, 75% to 100% of your principal investment is guaranteed if you hold your fund for a certain length of time (usually 10 years). If the fund value rises, some segregated funds also let you “reset” the guaranteed amount to this higher value – but this will also reset the length of time that you must hold the fund (usually 10 years from date of reset).
2. Guaranteed death benefit – Depending on the contract, your beneficiaries will receive 75% to 100% of your contributions tax free when you die. This amount is not subject to probate fees if your beneficiaries are named in the contract.
3. Potential creditor protection - This is a key feature for business owners in particular.

3 Disadvantages of Segregated Funds

1. Your money is locked in – You have to keep your money in the fund until the maturity date (usually 10 years) to get the guarantee. If you cash out before that, you’ll get the current market value of your investment, which may be more or less than what you originally invested. You may also be charged a penalty.
2. Higher fees – Segregated funds usually have higher management expense ratios than mutual funds to cover the cost of the insurance features.
3. Penalties for early withdrawals – You may have to pay a penalty if you cash out your investment before the maturity date.

While a RRSP is a retirement savings vehicle, when you are ready to start receiving income from your RRSP account, you can convert to a RRIF or purchase an annuity from a life insurance company, unless you choose to cash out your RRSP completely and add the full market value to your income for the year, paying tax on the full amount, which is not a great option.

If you are interested in discussing your investment options, please give C. M. Steele Insurance Brokers a call at 905-835-2417 or email us.