Investment

Life Insurance: Expense Or Investment? – Insurance – Canada – Mondaq News Alerts

Published

4 years ago

August 10, 2020

Harry Miller

Canada:

Life Insurance: Expense Or Investment?

10 August 2020

Lawyers Financial

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Life insurance is often thought of as something you buy to
protect loved ones in the event of your death. Viewed through this
lens, the premiums you pay seem more like an expense than an
investment. On the other hand, an insurance policy that will take
care of your family members and your business partners could let
you spend more of your money guilt-free as you age and ease into
retirement. From this perspective, life insurance is a great
investment and well worth the cost. Here’s why.

“The goal of leaving a big inheritance to your children, a
faith group, or a favourite charity can discourage a lot of people
from tapping into their wealth and enjoying the rewards of their
hard work,” says David Camps, Vice-President of Marketing and
Client Experience at Lawyers Financial. “That’s
unfortunate because the strategic use of insurance can let you
access your net worth while you’re alive, knowing the policy
will take care of your beneficiaries.”

As your Lawyers
Financial Advisor can explain, there are many ways to protect
your family and your business interests. The key is assembling the
right combination of policies. That’s what our advisors do
best.

PROTECTING YOUR FAMILY

The younger you are, the less likely you are to have substantial
assets that can be handed down to your children or used to pay off
debt. As for the assets you do have, the cost of passing them on
may erode their value (probate fees and estate taxes could kick
in).

That’s why you should consider an insurance policy such as

Lawyers Financial Term 80 Life insurance. It provides a
cost-effective and tax-efficient way to protect your family and
ensure their financial well-being. A guaranteed payout could be
used to:

Pay off your mortgage.
Pay off other outstanding debts.
Replace your income.
Pay for your children’s
education.
Provide cash to pay probate fees and
taxes without needing to liquidate assets.

PROTECTING YOUR BUSINESS

If you are a sole practitioner or member of a small firm, an
investment in life insurance has two immediate benefits:

1. It can be used as collateral

A term life insurance policy can be assigned to a lender as
collateral for a loan or line of credit. Upon your death, the
insurance company would pay the loan balance and anything left over
from the insurance benefit would be paid to your beneficiaries.

Consult with your Lawyers
Financial Advisor if you anticipate the need for business
financing. They can help you put the right, and most affordable,
coverage in place.

2. It can help in business succession

If you are a partner in a law firm, you likely have a buy-sell
agreement that addresses the death of a partner. Life insurance can
help all of you fulfill the terms of your agreement in a simple,
cost-effective manner, allowing you and your remaining partners to
focus on your business.

Whatever your situation, life insurance is an investment and an
important part of a financial plan that allows for more financial
options while you are alive and still provides a guaranteed payout
to your beneficiaries down the road.

Originally published 08 August, 2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

3 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.