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Most people in their 20s and early 30s don’t think much about life insurance. At that stage, you are often focused on building your career, paying off student loans, saving for a house, or starting a family. Working with a financial advisor like Dream Financial Planning can help you see how life insurance planning fits into your bigger picture. Let’s find out more.. Lock in lower rates One of the main advantages of buying term life insurance or permanent life insurance before age 35 is cost savings. Premiums are based on age and health. That means the younger and healthier you are, the less you usually pay. Waiting until your 40s can mean higher costs or difficulty qualifying due to your health issues. Do it now while it is cheaper Protect the people who depend on you Even if you don’t have children yet, you may have people who rely on your income. That could be a partner, parents, or siblings. Life insurance provides coverage that can help with living benefits, debt reduction, or education costs. For young parents, it can also support RESP contributions, childcare, or everyday family financial planning. Cover debts and major expenses Many young adults carry student loans, car loans, or credit card balances. These debts don’t always disappear if you pass away. Life insurance means your family isn’t left burdened. It can also protect a mortgage, safeguard your home, and help with estate planning. Plan for the future Life insurance is not only about covering the unexpected. It can be part of your long-term financial planning strategy. Permanent life insurance can create tax planning advantages, support succession planning, and form part of small business financial planning or business tax strategy. Starting early gives you a massive advantage. Peace of mind Perhaps the most valuable benefit is peace of mind. Knowing that your loved ones are protected allows you to focus on your career and grow your savings.  Ready to explore your options? Life insurance has to be bespoke to your needs. The right plan depends on your stage of life, your goals, and your budget. I would be happy to help create a personalized financial and insurance plan

Life insurance is often seen as a safety net for loved ones, but did you know it can also be a powerful financial tool during your lifetime? Whether you're planning your estate, managing corporate obligations, or simply looking to enhance your financial flexibility, leveraging a permanent life insurance policy could be a strategy worth exploring. What Is Life Insurance Leveraging? Leveraging involves using the cash value of a permanent life insurance policy as collateral for a loan from a third-party lender. This allows you to access funds while keeping your policy intact - potentially unlocking long-term financial benefits without disrupting your estate plan. Why Consider Leveraging? A life insurance leveraging strategy can offer several advantages: Tax-free death benefit: Your beneficiaries receive the insurance proceeds tax-free. Tax-advantaged growth: The cash value within your policy grows on a tax-deferred basis. Interest deductibility: If the borrowed funds are used for eligible investments, the loan interest may be tax-deductible. Capital Dividend Account (CDA) credits: If the policy is owned by a corporation, the death benefit may generate CDA credits, allowing tax-free distributions to shareholders. Who Might Benefit from This Strategy? Leveraging isn’t for everyone. You may be a good candidate if: You need permanent life insurance coverage. You have liquid capital to fund the premiums. You’re in a high tax bracket (personally or corporately). You’re comfortable with borrowing and understand the risks. You have access to strong tax and legal advisors. How Does It Work? Here’s a simplified overview of how a leveraging arrangement typically unfolds: Fund the Policy: You (or your corporation) make deposits into a permanent life insurance policy. Secure a Loan: The policy is used as collateral to obtain a loan from a lender. Invest the Loan Proceeds: If the borrowed funds are invested in eligible assets, the interest paid may be tax-deductible. Premium Deductibility: In some cases, if the borrower and policy owner are the same, a portion of the premiums may also be deductible. Repayment Upon Death: When the insured passes away, the death benefit repays the loan first. Any remaining proceeds go to your beneficiaries. Note: If the policy is corporately owned but the borrower is a personal individual, additional tax and legal considerations apply. Final Thoughts Leveraging a life insurance policy can be a smart way to enhance your financial strategy—providing liquidity, tax efficiency, and estate planning benefits. But like any financial decision, it’s important to consult with qualified advisors to ensure it aligns with your goals and risk tolerance.

What is your most valuable asset? It’s a tough thing to think about, and not something that you often have to determine. Let’s face it, how can you possibly rank your home against your family against your health? Well, the common denominator in all these assets is you, and that suggests that you and your ability to earn income to support other aspects of your life is indeed your most valuable asset. This then begs the question, “What would you do if you could no longer work due to disability or sickness?” According to the 2022 Canadian Survey on Disability, over 2.6 million working-age Canadians (ages 25 to 64) reported having a disability (1). This means that approximately 10% of working-age Canadians may be unable to financially support themselves and their families if their ability to work is affected. It is possible that these 10% are confident in their financial security, but if their primary foundation - their income - is removed from the equation, they will likely have trouble meeting their financial obligations. How will you replace your income if you are disabled? Many people automatically think to their savings, but this is not actually the most practical approach. If you saved 5% of your income each year, 6 months of total disability would entirely wipe out 10 years of savings. Borrowing from a bank is also an option to consider, but it is important to keep in mind that banks will not be as willing to lend to someone who cannot work as to someone who can. What about your spouse’s income then? That’s an option too, but will you really be able to pay your bills and financially survive on one income? Does this mean giving up your family’s standard of living? Selling assets for cash unfortunately is not necessarily a viable option either. What if you do not get a fair market price when you sell? There are also taxes and investment risks to consider when you are paying for something with cash. There is an answer though, and a good one too! The solution you can count on if you are no longer able to work due to sickness or accident is an individual disability plan. This form of insurance policy provides disability coverage for a wide variety of circumstances while still being flexible for your specific situation. You are not replaceable, but your income can be. References 1. Statistics Canada, Canadian Survey on Disability, 2017-2022

As the RRSP (Registered Retirement Savings Plan) season approaches, it's important to be well-informed so you can make the best choices for your financial future. We’ve highlighted three key resources to help you, with the support of a professional advisor, get the most out of your RRSP contributions and navigate tax season with ease.  1. Optimizing Your RRSP Calculator Every dollar is important when you're managing financial responsibilities and saving for retirement. This calculator demonstrates how increasing your anticipated tax refund could enhance your RRSP contributions, significantly boosting your short-term and long-term savings. You have the option to temporarily fund this additional contribution either out-of-pocket or with a conservative short-term RRSP loan until you receive your refund. Be sure to consult an advisor to determine what savings strategies would be best for you. 2. INFOclip: RRSP vs TFSA Saving for the future is essential, but with numerous investment options and potential tax implications, choosing the right one can be tricky. This video explores two popular savings tools: Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). It breaks down their respective benefits, including eligibility, contribution limits, and tax considerations, helping you make an informed decision about which is best for your financial goals. 3. SMART TALK… about investments Retirement planning involves matching your investments with your goals and risk tolerance, whether it’s near or far. Equities can enhance your portfolio but may lack security. Enter segregated funds – an under-the-radar option that's been around for over 50 years. Watch this video to learn about their benefits and growth potential, ensuring a balanced and secure retirement. While these resources provide valuable insights, it's essential to remember that financial planning can be complex and personalized. Consulting with a professional advisor can help you tailor your RRSP strategy to your unique financial situation and long-term goals. An advisor can offer expert guidance, ensuring that you make the most of your contributions and navigate the intricacies of tax season with confidence.