Deciding on Temporary or Permanent Life Insurance in Montreal? Robert Yancovitch Can Help!

It can be tough to decide what you REALLY need when it comes to life insurance. After all, who really wants to bet on when they’re going to die? What you’ll discover is that one type of insurance is drastically cheaper than the other (term, or temporary life insurance), while the other plan has a wide varieties of bells and whistles.

Understanding Life Insurance Policies

Think of Life Insurance policies like a more morbid form of renting. Imagine paying into a term insurance policy for 5,10, 20, or even 30 years, and never actually having to use it? Then you’re putting down a whole bunch of money on something you’ll never get. On the other hand, permanent insurance is more concrete. Imagine buying the whole house- for example Dad is a single parent and worries about his kid paying bills and going to college without him in the future.

With all the Variables, What do I Choose?

There are a huge amount of variables to consider, and Robert Yancovitch has the experience in Montreal to help you solve your insurance dilemma, but until then we’ve got some features and statistics for you to consider:

-When premiums don’t escalate, permanent plans are far more likely to hold their worth until a person actually dies to pay death benefits over term policies. Term policies start out very, very affordable and tend to increase as the age of the policy matures. Permanent policies also transfer death benefits at much lower tax rates (some term insurance policies tax about 50 percent).

-Permanent life plans actually give users tax advantages in that the actual “cash value” of the plan doesn’t accrue tax at a normal rate (instead at a tax-deferred rate). If your term life insurance doesn’t have a legitimate cash value, your really don’t make anything on the investment.

-Life insurance policies are typically never enough, because people invest in cheaper, more affordable plans that pay minimums (and that’s usually it). You should either ramp up your policy (with Robert Yancovitch’s help in Montreal) or expect to save regularly to commit an investment on the side.

Get all the Facts from Someone in Your Corner

It’s not all doom and gloom, however. With a skilled and helpful Montreal insurance agent you can find an affordable plan if you’re in the right health that maintains a steady value and makes you money!

A good term life program starts growing your money within the first year of being funded. Interest rates are locked in, the money can never be lost, and there are far lower tax rates to consider. These factors alone greatly improve the value of index life insurance for investors. It just takes the right agent. Get interest free access to the cash inside your policy, helping you rebuild wealth after a death in the best way possible- contact Robert Yancovitch today.

Do You Really Need A financial security advisor?

If you had a toothache, you’d see a dentist, right?  If you broke your leg, you’d go to the hospital.  These are the kinds of things that we automatically entrust to the experts.  Why, then, do so many of us struggle with the idea of entrusting our finances to a financial planner?  The truth is, most of us are not experts in the area of investing in the future, so the help of a qualified, experienced financial security advisor like Robert Yancovitch can be invaluable.

Whether you have recently inherited a large sum of money, have started earning more money at your job or simply want to sock away some money for a rainy day, a financial security advisor can help you achieve your financial goals.  Hiring a financial planner can be one of the best investments you’ll ever make.

If you’ve ever asked yourself whether you need a financial security advisor, you probably do.  Even if you don’t have a large amount of money to manage, you can benefit from the services of a financial security advisor.  What once was a service utilized only by the very wealthy is now something that everyone can benefit from.

It’s important to understand the different types of professional designations that people in the financial field can have, what they mean, and how those professionals can help you.

CFP:  Certified financial security advisors have passed a standardized test and demonstrated their knowledge and understanding of various topics, including insurance, investments, taxation, employee benefits, retirement and estate planning.  They also must meet requirements relating to professional ethics.

Chartered financial consultants pass exams in finance and investing

Chartered life underwriters (CLUs) pass exams on insurance-related topics

Chartered financial analysts pass exams in economics, financial accounting, securities and other topics.

This may seem intimidating, but for most people’s financial needs and investments, a Certified Financial Planner will do the job beautifully.

When looking for a financial security advisor, it’s important to note that there are four different categories, based on how they will charge you for their services.  These categories are:  Fee-only, fee-plus-commission, fee offset and commission only services.

Basically, a CFP who works on commission earns that commission based on the financial products he sells you, such as various types of insurance, mutual funds, etc.  Some financial security advisors will charge a fee on top of that commission, others won’t.  Others will offset the commissions they earn against their (flat) fee, and some others work on a commission-only basis. Those CFPs that charge only a fee (no commission) may do so based on an hourly rate, a flat fee for an all-in plan, or by way of an annual retainer.  Some CFPs who opt for this fee structure do so because they are not registered to sell certain financial products.

So, if you are wondering whether you need a financial security advisor to help manage your money, you probably do.  As long as you are dealing with a trustworthy, reputable and experienced financial advisor such as Robert Yancovitch, you really have nothing to lose.

TFSA or RESP: Which is the Better Option?

If you have a child, you probably think about putting something away for their education someday.  The harsh reality, however, is that putting a child through post-secondary education can put a significant strain on a family’s finances.  Fortunately, in Canada, the government has offered a couple of different savings avenues that can help to alleviate some of the financial burden of saving for your child’s education.

Let’s look at these two savings options in a little more detail.

Registered Education Savings Plan (RESP)

This is a tax-deferred investment, in which the government provides grants up to a maximum annual amount of $500 per child, with a maximum lifetime grant amount of $7,200.  That’s a lot of money, but it’s a drop in the bucket when you consider that it can cost upwards of $100,000 to send your child to university, including tuition, books, food, housing and other expenses.

Tax-Free Savings Account (TFSA)

These accounts are another option for saving for the future, without having to pay taxes on the amount you have stashed away.

Which of these two options is best for you is for a financial security advisor such as Robert Yancovitch to help you to decide.  There is no one right answer; it depends on your financial situation today and your goals for tomorrow.  However, there are some guiding principles that could help you to decide.

If you know you want to save money for your child’s education, an RESP could be the best choice.  Those funds must be used for education.  The funds you save in a TFSA, on the other hand, can be used by your child to pay for school, to travel, or to buy their first home.

Both of these savings plans have benefits and downfalls, says Yancovitch.

For example, the RESP offers the distinct benefit of having a 20 percent government top up, thanks to the Canadian Education Savings Grant.  Parents or other contributors can put up to $50,000 per child into the RESP until the “child” turns 31.  With the government grant, contributions to an RESP can grow relatively quickly.  Plus, it’s tax sheltered.

On the downside, if your child decides not to attend a post-secondary education, the government will take back its contribution and any growth made off of that portion.  You will only be able to withdraw the amount you put into the RESP and any money you made off of it.  Also, although the RESP contributions are sheltered from tax while it is in the account, once your child withdraws the funds they will be taxed.  This is only a minor concern in most cases, however, as most university students have little to no income to cut into their RESP funds.

A TFSA, on the other hand, provides families with more flexibility.  Parents can contribute up to $5,500 annually, and the money is more easily accessed than the funds in an RESP.  TFSAs, of course, are tax free, both in the accumulation and in the withdrawal.  On the downside, there are no government contributions to your TFSA.

Another potential downside for the TFSA is that the money is easy accessed.  But wait, we just said that was a plus, right?  Well, it could be.  But it could also be a downside, depending on your discipline as a saver.  For example, what if you, as parents, need money for something urgently?  It can be very tempting to dip into your child’s TFSA, thinking that you’ll replace the funds someday.  If you can be disciplined to keep the money in there and view it as untouchable, it can be a good investment in your child’s future.

Both the TFSA and the RESP are good options for saving for your child’s future.  The trouble is, how do you know which option to choose?  That’s where a qualified financial security advisor such as Robert Yancovitch comes in.  He can help you to decide which avenue is best for your situation.

Top Traits Of A Good Financial Security Advisor

Choosing a financial security advisor can be a stressful decision.  After all, your financial security both today and in the future depends upon the guidance and advice of your advisor.  It’s important to choose a good one. Financial security advisor such as Robert Yancovitch who are worth their salt will have a certain set of qualities, so it’s a good idea to look for certain things when you interview a potential advisor to manage your finances.  Below is a discussion of the common traits of a great financial advisor.

A good reputation

Financial security advisor such as Yancovitch work hard to achieve a good reputation in the industry, and it is that reputation that earns them more business.  How?  Typically, word of mouth referrals are an advisor’s best source of business, and you wouldn’t recommend him unless he did a good job, right?  If you get a referral from a trusted friend or family member, you can be reasonably sure that that advisor is trustworthy and has a good reputation.  That’s always a good place to start.

Good communication skills

Financial markets aren’t easy to understand, especially for those who are new to investing and money management.  A good advisor will break down complex concepts for you so that they are easily to understand.  More than that, he’ll explain why he is making his recommendations and why he thinks they would benefit you.

An even keel

The reality of the financial world is that things go up and things come down.  They fluctuate.  With most investments, there is a certain degree of risk involved.  A financial security advisor’s best asset is the ability not to panic when things change.  Advisors like Robert Yancovitch understand the importance of devising a well thought-out financial strategy for each client – and sticking to it.  Don’t deal with advisors who are constantly trying to push on you the latest trendy stock of the day.  You should never feel pressured into investing if long-term growth is your ultimate goal.

Similarly, a good financial security advisor will be trustworthy.  To do that, he should exude confidence and knowledge, without being cocky or arrogant.  You should come away from your appointment feeling relaxed and confident in the decisions your advisor is making on your behalf.  If you feel unsure or ill at ease following a meeting with your advisor, that should be a red flag.


Of course, it’s important to hire a professional, experienced financial advisor.  Anyone can say he is a financial advisor, but it’s important to find one who has the education, experience and certification to back it up.

They meet all of your financial needs

A good financial security advisor such as Yancovitch will take a complete look at your financial situation before making any investment suggestions.  For example, he will take the time to ask questions about your current financial situation, your goals, your insurance needs, investment preferences, risk tolerance, etc.  He should ask about your spending/saving habits, your current debt load, your short- and long-term financial goals, and anything else he needs to get a complete picture of where you are financially and where you want to be, so he can formulate a plan to get you there.