Creating a Customized All-Inclusive Life Insurance Portfolio…

Canadians who refer to a ‘portfolio’ are often referring to a generously assembled basket containing a myriad of financial products and services. The more commonly known portfolios are; ‘investment’ or ‘stock’ portfolios and ‘real estate’ and/or ‘mutual/segregated fund’ portfolios. A portfolio can also contain an assembly of like-minded correlated and/or uncorrelated instruments for asset balancing.

As a proud forward thinking 21st Century Financial Advisor; I’ve created a new* ‘portfolio’ classification to this mix; which is a portfolio consisting of multiple life insurance, critical illness, investments and disability products; packaged in an all-inclusive; yet unique manner.

The portfolio is designed to offer two components; a) to deliver maximum protection and b) to create long-term wealth for you and your family. (*new design)

As much as I cannot (or will not) identify an Insurance product or Insurance Company by name; I'll do my best to describe what an All-Inclusive Insurance Portfolio should look like; from a macro perspective.

Our Life Insurance portfolio’s architectural structure are designed to boost the portfolio’s performance while seamlessly fulfilling the core rationale for designing the portfolio and its myriad of layered components.

We would gladly reveal our secret sauce(s); however; the decision to reveal our ‘secret sauces’ rests 100% with you; after all, with over 30 years in the Wealth Management space; we strive to provide our clients with the best financial advice and direction our experience allows; fortunately; a service reserved for our clients who have placed their family’s faith and trust in us. Let’s get started…

Lesson #1: Why do Canadians purchase Life Insurance?

Just because my cousin ‘Phil’ bought Life Insurance, doesn’t mean I’ll buy some; or just because my next door neighbour ‘Sally and Jim’ bought Life Insurance; doesn’t mean we have to runout and buy some without understanding the rationale.

In MY humble opinion; there is a flaw within the Life Insurance industry and it’s ensuring clients understand the ‘WHY; the ‘BENEFIT(S), the REPLACEMENT FACTOR* and the ‘OBJECTIVE(S)’ of securing a Life Insurance policy. (*Have You Calculated Your Income Replacement Factor?) We Can Help…

Purchasing Life Insurance is an emotional decision; as, it can be the difference between a family’s survival after the premature death of a breadwinner; leading to the family’s detriment. In my 30-year career; I have paid over 30 + death claims; you may say, isn’t that a naturally statistical occurrence; of course, it is; however; are you willing to challenge the probability of mortality? I hope not!

Lesson #2: What is the best Life Insurance Policy to purchase?

The answer; the best life insurance to purchase is the one which will be ‘in-force’ when you die; after all; dying after your policy expires is a ’bad’ policy. You would be surprised to know how many clients allow their policy to lapse and die shortly after; it’s happened to clients in my brokerage on multiple occasions.

What could I have done? Honestly; nothing short of multiple reminders. It’s the sole responsibility of the insured to maintain payments; after all; we live in a democracy, promoting the ‘free’ will of Canadians. You cannot legally 'force' anyone to pay their premiums or keep their policy 'in-force'.

Another point I would like to stress on, is, every single death claim I've paid, was for a different reason; it protected homes; it provided income; it paid for education; it paid off debt and last but not least, it was used to give back to society via a charitable bequest.

Our All-Inclusive Life Insurance Portfolio…

Adding products which are rigid will not work here; the foundation has to be built on a platform which offers flexibility; flexibility to add; flexibility to subtract; flexibility to pay and flexibility to skip payments (if required).

Step 1: Determine the Base Coverage; you can use The Money Café’s Insurance Needs Analysis calculator to determine to the penny; the dollar value, which will replace your income (50% to 100%) and or eliminate your debt (50% to 100%) …

Step 2: Determine your Base Riders; such as; adding a Mortgage Insurance Rider; Critical Illness Rider, Child or Disability Rider…

Step 3: Determine your Budget; what budget? Isn’t Life Insurance premiums pre-calculated? Yes; but who says you’re ONLY purchasing Life Insurance? Our portfolios allow you to pick a premium between minimum and maximum values; again; in direct correlation to cost and benefits…

Step 4: Determine your Wealth Accumulation goals within your Life Insurance Portfolio? I didn’t know I could do that; again, like step 3; your cash values are not controlled by the Insurance Company; it's actually up to you (with my assistance) to add this portfolio’s future cash value to your retirement options…

Step 5: Determine Your Investments Mix. You control how and where your cash within the portfolio is invested. You determine your risk level; your pay period and you also determine (in the event you need to) a ‘premium’ or ‘deposit’ holiday; if required…

Obviously; I’m providing you with a macro-overview of my 5 Step Life Insurance Portfolio Creation Process; quite honestly, I don’t have the space on this newspaper (nor on Facebook and LinkedIn) to go much further; so, to ensure you’re fully aware; reach out...this is only an intro.

In conclusion; go back to Lesson #1; why are you purchasing Life Insurance; are you doing it because of peer or family pressure; are you doing it because you need to have ‘something in place in case you die (as one client initially told me) or are you purchasing Life Insurance for fundamental, well calculated reasons; reasons, to which your family is depending on you; to clearly define.

Bonus Oct 5th to Dec 4th: The Next 20 New Clients will receive our Mortgage Eliminator Analysis (Valued at $99). This analysis will provide you with a ‘revised’ mortgage amortization schedule; which, when executed, will save you ‘tens of thousands’ in wasted mortgage interest and will illustrate YOUR roadmap to achieve Mortgage Freedom in 12.5 to 13 years; instead of 25 or 30.

We can be reached via: riyadm@themoneycafe.ca or you can visit us online at: www.themoneycafe.ca; Linkedin and Facebook; you can also fill out one of our ‘Request for More Info’ forms (www.themoneycafe.ca) and we will be delighted for you to include us; on your amazing life-long journey.