Save money and sleep better. Put your money with insurance company GIC.
lf you take the time to watch this video presentation you will learn 7 EASY financial tips that will save you thousands of dollars and important things like how you can receive your inheritance-or give one- about 25 times faster than the normal probate method. You don’t have to pay for these tips. You don’t even have to pay to implement these tips.
In addition to saving money though using a life insurance company, you can safely invest –even in risky things like the stock market- and sleep better at night knowing that the insurance company will pay out to your heirs 100% of your original investment regardless of its actual value, if you pass away.
These money saving tips are FREE to implement. But -to take advantage of these cost savings and investment building tips you must break out of the box. The box is your friendly neighbourhood bank.
When you are setting up a mortgage through your bank, they invite you to pay a little extra for life insurance that will pay off the mortgage if you die. Saying yes is just a little check mark in the box: It’s fast, easy, and convenient, but EXPENSIVE: For example if you are age 50, your rate would be $275.40 month from the highest bank, but only $48 month if you are especially healthy and buy it through an insurance broker. So potentially $48 vs. $275.
You get what you pay for right? The bank insurance is better? Not according to the trusted CBC. They call bank insurance a poor choice because they might not pay up. The CBC says that it is so unethical as to be actually illegal in some parts of the USA. Don’t take my word for this, Google “cbc mortgage insurance”. http://www.youtube.com/watch?v=qe61HVGIwUo
Your GIC with an insurance company generally pays higher interest rates than the 5 main banks. Your life broker can shop around for you. I can shop about 30 companies in about 30 seconds and email you the printout. Yes, like at the bank, up to $100,000 is protected.
Typically a bank GIC is locked in for its term period. But suppose you have a family emergency and need that money. Unless you died, you can’t get it. With an insurance company you can.
The first $2000 interest received from an insurance company GIC can be tax free if you’re 65, depending on other specifics. Not so from a bank. (Not in the video: You can also easily share/split the interest income with a spouse if over 65)
Money with an insurance company, an investment like a GIC or an investment fund goes directly and immediately to the designated heirs NOT probate. This means they get the money about 25X faster- in about 2 weeks. The other way- probate and distribution of the will can take a year or two easily. Not long ago, I advised a family to move a major portion of their very elderly father’s money that was willed to them, from the bank GICs, into insurance company GICs. But they refused. A few weeks after the father passed away, the executrix was being asked by them for their money because one heir was about to be evicted, and another heir’s line of credit was at max with unexpected renovation bills flowing in. They could have had their $60,000. Now they will have to wait for a year or more.
Any legal complications with the “Will” further delay things. A “Will” is a public document and can be contested. Somebody claims they are owed money? A “friend” suddenly says they were actually a “friend with benefits”. A new wife rewrites the will and cuts out the step-children. Various things can mean money your want for your children does NOT get to them. All of these things happen. An insurance company GIC or other policy is a contract that cannot normally be broken by outsiders. The money is “homefree” to the beneficiaries. The directives are clear.
Tip # 7
For my last tip, probate fees are a tax and based on the size of the estate. Money with an insurance company is NOT part of the estate and bypasses those fees and lowers the ratio on the funds that are taxed. In other words, $200,000 in bank GICs costs taxes of about $2500 and as mentioned -delays you getting the money by about a year or so. In contrast, $200,000 in an insurance company GIC saves that $2500 and you get the money in a couple weeks. Sounds like a no brainer to me. Does it to you? But you got to break out of the box!
(B. Keith Neely, Ontario, Canada, Life broker)