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Preparing for the Unexpected

By Allan Morse

Consider the financial obligations you would have in the event you are unable to work - in addition to personal commitments and ongoing payments and liabilities of the business, you would also have additional healthcare costs. The list can be overwhelming. With the right Living Benefits and Life insurance strategies, you can make sure your ability to earn income, the success of your business and peace of mind for your family are well taken care of.

Focusing on recovery
Living benefits provide you with a regular benefit if you are unable to work or have to pay additional living costs due to your medical condition. Depending on your insurance - Long Term Care insurance, Disability insurance, or Critical Illness insurance – the benefits can help you:

Obtain quality additional health care
Concentrate on your recovery without worrying about lost income or liabilities
Manage your business’ cash flow while you are recovering so it can continue to operate without disruption

Protect your assets
Your retirement savings have a great deal of potential. It can lead to early retirement or exotic locations. Unfortunately, many individuals rely on their retirement savings if they are not prepared for unexpected health-care costs. Life benefits can protect your savings and keep your retirement plans intact no matter how your physical health changes.

Living benefits can also protect the time and effort you have invested in building a successful business. With the right strategy, you can fund an agreement that allows the full value of the business to be passed to a partner in the event you become suddenly ill and unable to work.

Living benefits provide you with a regular benefit if you are unable to work or have to pay additional living costs due to your medical condition

Give you and your business a tax break

You can also incorporate living benefits into your tax planning strategies. Disability insurance offers tax advantages for you and your business. You can choose to implement the policy through your business and deduct the premiums. Similarly, if you adopt a personal Disability insurance plan or a Long Term Care plan and pay for the premiums with your after-tax income, the benefits you receive will be tax-free income.

In addition to the tax deductions through Living Benefits insurance, you can also include Life insurance into your individual or group benefits plan with similar tax advantages and additional assurance that your family will be taken care of when you die.

Allan Morse is Vice-President and an Investment Advisor with RBC Dominion Securities Inc. in Charlottetown, PEI. Member CIPF. Allan can be reached at –1-800-463-5544. This article is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy.

You can Email Allan here.