Great Lakes Investment Group
April 26, 2024
Money Financial literacy EconomyInsurance - The First Plan in a Financial Plan
When it comes to Financial Planning, our team at Great Lakes Investment Group charts out your income, expenses, liabilities, and overall financial goals. It's a balance of needs and goals with an outcome that's realistic and manageable along the way. With high inflationary expenses and the rising cost of living as part of our daily lives, insurance is inevitable for an overall wealth strategy and plan.
So, let's take a look at how this works. Insurance acts as a safety net to protect your family from financial stress and ensures no impact to your overall plan. Here are the different ways insurance can safeguard your family's financial well-being.
1. Financial Security—Insurance policies offer peace of mind by covering the losses you experience during emergencies. This assurance means that in the event of an emergency, your insurance policy will bear the financial burden, allowing you to strategize your finances and fund your objectives, safeguarding you from emergency expenditures.
2. Risk Coverage—We're all looking to mitigate risk, and insurance functions as a valuable tool to handle potential financial setbacks resulting from unexpected circumstances like death or hospitalization.
3. Tax Benefits—Canada's life and health insurance plans also offer tax-saving benefits. These deductions and credits can help reduce your taxable income, potentially saving you money on taxes. Additionally, certain benefits under life insurance plans, such as the death benefit and potentially the maturity benefit (depending on the policy and tax regulations), are tax-free under the Canadian tax system. This makes insurance investments a way to protect yourself and your family and a strategic option for tax planning.
4.Planning for All Potential Needs—By selecting the appropriate policies based on your specific risk assessment, you can build a comprehensive layer of financial protection that covers a wide range of potential challenges.
Emergency preparedness is the initial stage of financial planning, and insurance plans play a pivotal role in achieving this preparedness. Before delving into extensive savings and investment strategies for your objectives:
- Prioritize insurance planning.
- Establish a solid foundation for secure, resilient financial planning against unforeseen events.
- Proceed with your financial planning journey, strategize your portfolio, and watch as your investments guide you toward your goals.
At a minimum, every Great Lakes Investment Group portfolio has term and health insurance safeguarding options added to every financial plan. It may be worth a second opinion if you haven't discussed this with your Investment Advisor. We're always here.
CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.
Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors.
Given the complexities involved, specialized tax and pension advice must be sought to ensure an Individual Pension Plan (IPP) is appropriate to individual situations. An IPP strategy must be considered within the context of a comprehensive financial and estate plan.