Protection, Investments and Need for Knowledge

Educational series of seminars developed for women by women.  P.I.N.K. is designed to support women and their loved ones in making more informed financial choices during critical decision-making stages in their lives.

P.I.N.K.

Rudichuk Agencies Ltd.

Series One – Life & Estate Planning

¨ As women, we live longer than men. We will need to prepare not only for our own future, but possibly for our parent’s future and our children’s future.

¨ Are you covered with life insurance? How much life insurance do you actually need? You can determine this amount by having your Advisor complete a Financial Needs Analysis for you. What debt will your loved ones be left with in the event of your death?

¨ Prepare for your future: What will be your sources of income:

à At age 60

à At age 65

à In retirement

à When you are a widow

¨ What is an Estate?

à What does it include

à Who does it impact

à Do you have a Will?  Do you have a Power of Attorney?  Do you have a Health Care Directive?

à What is the probate process?  Will your money be tied up in Probate should your spouse or you die?

à Is there a family trust something you need?

· Segregated Funds vs. Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

¨ Life Insurance – TYPES

à Term Life Insurance – 10 & 20 years to age 100; Covers financial debt

à Permanent – Covers final expenses and beneficiaries

à Whole Life – Provides cash values upon surrender

à Universal Life – Provides tax shelter, flexible terms and premiums   

à Your Advisor will be able to recommend the best mix for you

¨ Reasons for owning life insurance:

à Financial security

à Wealth transfer

à Final expenses

à Retirement

à Estate tax

à Investment

à Mortgage/loans

à Charity

à Business succession planning

¨ Let’s Get Organized! – These are documents you should review and have them stored in one place:

à Will – for family and business

à Powers of attorney, living will

à Trust agreements

à Insurance policies

à Real estate deeds and titles

à Birth and marriage certificates

 

Ten Steps to an Effective Estate Plan

1. Add life insurance to your estate plan

2. Put your estate team in place (Financial Advisor, Lawyer, Accountant, Executor)

3. Inventory of assets and get documents in order

4. Review your Will and update regularly

5. Equal / fair distribution to family

6. Inquire about the benefits of a trust to your estate

7. Reduce taxes and avoid probate

8. Prepare trusts to protect children

9. Consider charitable donations

10. Get an objective opinion from your PINK Advisor

Series Two – Family Asset Protection

¨ Who will care for the caregivers?

à 89% of women over 65 have at least one chronic health issues

à 250,000 women were diagnosed with heart disease in 2001

à 1 in 3 will develop breast cancer, 96% will survive

à The average indirect cost of recovery is 2.5 years and $30,000

¨ How will you pay for your recovery if you are diagnosed with Cancer, Heart Attack, Stroke

 

SCENARIO 1: Pay for your recovery using RRSPS (Not the best choice)

· Julie was diagnosed with cancer

· She decides to take $100,000 out of her RRSPs

· The government taxes her fully on the $100,000 in the highest tax bracket  of 44%

· Julie actually receives $56,000

· Julie pay for her medication, takes time off work to recover, her husband takes time off to recover, the kids continue with their regular routine of hockey, dance and music classes

· Financially – they feel the burden and Julie decides to keep working part-time during her chemo therapy treatments and radiation treatments

· Two years later, Julie survives the cancer, but now she will have to work twice as long as she has drained her retirement savings

 

SCENARIO 2: Pay for your recovery using Critical Illness Insurance (The best choice)

· Julie was diagnosed with cancer

· She receives her Critical Illness Insurance lump sum tax free benefit of $100,000

· There is NO tax or withholding fees, she receives $100,000 cash

· Julie pay for her medication, takes time off work to recover, her husband takes time off to recover, the kids continue with their regular routine of hockey, dance and music classes

· Julie decides to take a leave of absence, because she can afford it

· Julie’s husband decides to reduce his hours at work to take care of Julie and the kids

· Two years later, Julie survives the cancer

· Her retirement and savings are still there. She has the calmness and rational to make the decision when she will go back to work

¨ Critical Illness Insurance

à Pays out a tax free lump sum benefit to you in the event of one of the 23 covered illnesses

¨ Best Doctors

à When you are diagnosed with an illness, would you want a second opinion on your illness and treatment plan? Best Doctors is included in the Critical Illness Insurance policies

¨ Long Term Care Insurance

à Someday, because of your age or an illness, you may need long term care

à Do you know someone (a family member, friend, colleague, neighbour) who needed long-term care?

à How was the situation handled?

Statistics Canada: Women in Canada (2006)

Heart and Stroke Foundation Study (2000-2008) www.heartandstroke.ca

National Cancer Institute of Canada: Canadian Cancer Statistics (2004) www.cancer.ca/research

Health Canada Report, Economic Burden of Illness in Canada (1998)

 

Let’s Get Organized!

These are documents you should review and have them stored in one place:

¨ Assess your needs – Consult your physician

¨ Obtain family medical history

¨ What does your plan look like for your Group Long Term Disability

à Most plans are only payable until age 65

¨ Consult your PINK Advisor as to

à Risks, costs, etc

à Impact of illness on income and assets

à Benefits of Critical Illness Insurance

à Benefits of Long Term Care Insurance

à Benefits of Best Doctors

Ten Steps to Protecting Your Family Assets

1. Know your family history

2. Know what your health risks are

3. Have a balanced diet for a healthier lifestyle

4. Exercise regularly

5. Take precautions

6. Become aware of what your group plan covers and DOES NOT cover

7. Have a plan in place of what you would do in the incidence of a Critical Illness

8. Have a plan in place of what you would do when you require Long Term Care

9. Review your family needs annually

10. Get an objective opinion from your PINK Advisor on a Health Plan that`s right for you

^{5 Saskatchewan uses an income based system to determine accommodation costs.
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