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Financial Beacon 4th Qtr. 2014

Apr 05, 2016

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  • Brought to you by Alan Pires, CMA, CSA, FIC

    Knights of Columbus

    A good RRSP option you probably didnt

    know about

    ACCELERATOR

    TERM INSURANCEserves your familys

    changing needs

    Financial BeaconFall 2014

    Our strength is your

    strength. K of C insurance is strong, stable, and reliable

  • Permanent (or whole) life insurance is often a great foundation for protecting your family and assets over the long haul, but adding term life insurance to meet a temporary need can be an economical solution.

    The basic concept behind term insurance is: You pay premium for a set term, and if you die during that term, a set amount of money (the death benefit or face value) will be paid to the policys beneficiary. Its a simple concept, but many variations of term life insurance have emerged to suit specific life stages or life-changing events.

    For example, you may be considering term life because your familys entering a phase when theyll temporarily need more protection against a sudden income loss. Maybe your familys getting bigger. Or your house and mortgage and other financial obligations are getting bigger. On the other end of the spectrum, you could be near retirement or already there when the need for extra life insurance crops up.

    Term life can fit these situations. It can augment permanent life insurance, or it can be an affordable stopgap that you can convert later into a permanent policy.

    A M E S S AG E from your agent

    Alan Pires

    Dear Brother Knight:Our Orders greatest strength is our members. The same is true for our insurance program. Because our market isnt everyoneits only our fellow Knights and their familieswe have the freedom to offer products tailored to unique needs, like the Accelerator Term Life series and the Young Adult Insurance program described on these pages.

    Some of the most important advantages of one policy over another cant be easily described in a brief article, however. Thats why Im here to listen to you about your financial situation, your family, and your plans for the future. I can help you find the policy features, terms, and conditions that give you the best advantages your membership can provide.

    Make it a goal to address the foundation of your familys financial future before 2014 turns into 2015. Call soon for a complimentary, comprehensive financial review.

    Fraternally yours,

    New term life policy features help you adjust to changing needs

    YOUNG KNIGHTS: A QUICK, EASY, AFFORDABLE LIFE INSURANCE OPTION

    One reason young adults may not consider life insurance is that the life insurance industry doesnt seem to consider the unique needs and limited budgets of young adults. Unless youre a Knight, that is.

    If youre age 18 to 29 and you have a young familyor you have debts you want to make sure wont become a burden on a co-signergo to kofc.org/youngadultins, and discover our brand new Young Adult Insurance program.

    You can get a quick online quote for a $25,000 or $50,000 term life insurance policy that you can renew each year for as long as you need the protection. No need to lock in to a minimum term of 10 to 20 years when you may not have any idea what your needs will be a few years from now.

    If it turns out youre ready to lay down a financial foundation of permanent (or whole) life insurance, you can convert this policy, even in the unlikely event that youve developed a health issue that otherwise would disqualify you for a permanent policy.

    In general, life insurance will likely never be less expensive than when youre young. But thats no reason to go through an unnecessarily complex application process to get the type of coverage you dont need yet. The Young Adult Insurance program was designed for maximum convenience, flexibility, and value. *Not available in CA.

    ABOUT CONVERTING ACCELERATOR TERM LIFE TO A PERMANENT LIFE POLICY

    Accelerator Term policies can guarantee your ability to convert up to 125% of the face value into a permanent insurance policy, with no medical exam, through the first six policy years*, regardless of issue age. If youre age 55 or younger you can buy a Full Term Conversion Rider that guarantees your ability to convert the full face value into a permanent life policy for the initial term period of 10, 15, or 20 years, or the contract date nearest age 65, whichever is earlier.

    *Guaranteed conversion amount then drops to 50%, if applicable.

    The accelerator option protects increasing risk

    If the near future holds increasing need for life insurance protection, consider a term policy for which the face value increases automatically.

    For example, the Knights of Columbus offers a series of Accelerator Term Insurance policies.

    In these policies, 5% of the original face value is added to the face value each year for the first five years, without requiring you to reestablish medical eligibility. So if

  • YOUR AGENT

    Alan Pires, CMA, CSA, FIC 1822 Grosvenor Place

    Mississauga ON L5L 3V7

    PHONE: (905) 607-3557CELL: (647) 988-3557FAX: (905) 607-3167TOLL-FREE: 1(800) 263-KOFC (5632)

    EMAIL: [email protected]

    Family benefits & servicesKnights of Columbus insurance consistently ranks at the top of the industry in financial stability and ethics. Please call to discuss these services:

    Financial needs analysis Life insurance Life annuities Long-term care insurance Transfers of pension plan to registered plans (RRSP, TFSA, RRIF) Estate preservation Scholarships Family fraternal benefits Disability insurance

    Contact me today for information on long-term care insurance

    you buy a $100,000, 20-year term policy, in five years the face value will step up to $125,000 ($5,000 per year), where it stays for the remaining 15 years. The premium would increase in proportion with the face value during those five years, then level off for the rest of the initial term.

    The initial term can be 10, 15, or 20 years, after which you have the option to renew the policy each year without a medical exam, up to age 85.

    An important difference between Accelerator Term and some other term policies is that you can qualify for a policy up to age 70 and renew the coverage up to the renewal date closest to your 85th birthday.

    Paying a lower initial premium may help you purchase the policy sooner. Meanwhile, youve locked in a lower overall rate based on your age. Even more important, youve ensured that an unexpected health issue in the near future wont put the cost or availability out of your reach altogether.

    Accelerator Term is only one example of the flexible life insurance choices available to you as a Knight. If you see your need for life insurance increasing, call and lets go through your options.

    A good RRSP option you probably didnt know existed As a member of the Knights of Columbus, youre probably aware of our RRSP annuity option, available to you and your wife. But you may not be aware of a new option for RRSP monies thats available to you both.

    A decision so many of us wrestle with is how much of our income we can afford to put toward retirement versus how much to devote to life insurance that will protect our loved ones from financial hardship. But this doesnt have to be an either/or decision.

    If youre in a position to contribute either a modest or a substantial lump sum into a Registered Retirement Savings Plan (RRSP), consider using a single-premium whole life (SPWL) policy to fund the RRSP. As the name implies, you purchase an SPWL with a single premium payment. Your purchase does two things:

    It guarantees a larger, immediate death benefit will be paid to the beneficiary, should you die.

    The policy will begin earning cash value immediately, and that cash value is guaranteed to increase over time. In addition, your policy may be eligible for dividends, although dividends arent guaranteed.

    Take advantage of tax breaks and retirement optionsAs with any RRSP contribution, any new contribution is applied as an SPWL premium that is tax deductible, and earnings grow without being taxed until the money is withdrawn. You can also fund your policy with transfers from existing RRSPs.

    An SPWL policy gives you excellent options for retirement. As with any RRSP, you can covert the policy into an RRIF or an annuity to provide steady retirement income. Or you can simply de-register the policy, pay the tax on the cash value, and keep the coverage in place. After de-registering, you may choose to withdraw or borrow some of the policys cash value should the need arise.

    You may decide to keep the policy intact after retirement if your family still needs the protection. Or perhaps youll want to keep the policy to protect your heirs by offsetting estate taxes and final expenses.

    The best part about the RRSP-SPWL option is that youre providing for your retirement and your familys financial well-being at the same time, and thats double the peace of mind. Let me know if youd like to know more about the Knights of Columbus Single-Premium Whole Life RRSP.

  • This publication is written to provide accurate and authoritative information with respect to the subjects covered. However, the information contained in this pub li ca tion is not intended as a substitute for direct financial and legal advice. For such assistance, please contact a qualified professional. Reproduction of any part without written permission is strictly prohibited. Published in conjunction with the Knights of Columbus by Silverline Digital; distributed in the United States and Canada. Copyright 2014 Silverline Digital 550 Grand Canyon Drive, Madison, WI 53719 (800) 419-5203.

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