Sunstone Wealth

I’m a big fan of coaches and consultants.

They’re people who work directly with clients and always have them in mind whatever they do.

They’re some of the most customer-centric businesspeople in the market.

And they make a real difference in their clients’ life.

I’ve learned a ton from coaches and consultants over the years. I work with many of them, and I’ve utilized their services, too.

There are a lot of synergies between what I do as a financial advisor and what they do in their respective businesses.

What’s one type of business you particularly like or respect?

Best practices for financial freedom:

- Protect yourself against events you cannot control
- Maximize your TFSA and, when it makes sense, your RRSP contribution room.
- Take full advantage of your employer’s benefit programs.
- Don’t sell in panic during economic downturns. This too shall pass.
- Understand your level of tolerance to economic risk.
- Have a plan and stick to the plan.

There are two main types of life insurance you can buy:

- Term insurance
- Permanent insurance

TERM INSURANCE

With a term insurance, your coverage lasts for a specific period (usually 5, 10 or 20 years), and you pay a premium based on the risk you pass away during that period.

Term insurance is best for covering temporary needs.

For example, a mortgage or other debt is temporary. Eventually, you will pay off your mortgage and no longer need that coverage.

Likewise, providing an income stream for dependents may be considered temporary.

With term insurance, your premiums will rise at the end of the coverage period. Then they will continue for another period until the policy expires (usually age 75) or whenever you cancel the policy. It's flexible and, most importantly, inexpensive.

PERMANENT INSURANCE

With permanent insurance, your coverage never expires and can cover a person throughout their lifetime. There are two general types of permanent insurance:

- Whole Life
- Universal Life

The idea behind permanent insurance is that premiums will be much higher than term insurance since you are paying for your entire lifetime.
As such, you are paying extra premiums in the early years to fund your coverage in later years.

The main difference between the two is that in a Universal life plan you, the insured, determine how excess premiums are invested as well as the investment risk.

With Whole Life, the insurance company invests the excess premiums on behalf of all policyholders.

The most important aspect of this type of insurance is that it's permanent. Permanent insurance is perfect for covering insurance needs or desiress that never go away:

· Funeral Costs
· Estate settlement fees
· Income taxes
· A legacy for your family
· Charitable Donations
· Providing for a special needs child
· Etc.

If you don’t have life insurance and aren’t sure what you need, I’m here to help. We can have that conversation together—and, best of all, it is free.

Check the first comment for the link to my calendar.