Did you know that insurance can actually help protect your wealth? It protects and two key areas your Human Capital and your Financial Capital. Human Capital may sound ominous, but it's really the value of your future earning potential. The closer you get to retirement the last time you have to earn but you may still have years left to work and these future earnings are worth safeguarding.

Many people struggle to maintain their lifestyle after a major health incident but the right Insurance solution can help protect your income stream in the event of a disability or critical illness or even an early death by providing cash so that you or your family or business partners don't have to liquidate your Investments.

Now let's talk about your Financial Capital. This is measured by your assets like real estate holdings, businesses and Investments. When people think of Investments they often think of their GICs, mutual funds and stocks and bonds that are in their registered or non-registered savings accounts.

To understand how Insurance protects Financial Capital it's helpful to think about the role the tax place because typically the more money you have the higher your marginal tax rate. An RRSP allows you to defer paying tax but only until you take it out of retirement. The higher your annual income in retirement the more tax you pay you'll also pay tax on investment gains on your non-registered savings. A TFSA provides tax-free growth to but you can only contribute a relatively small amount of money each year. 

Permanent life insurance can also be used as an investment and may provide a superior rate of return than some other Investments. If you include a permanent life insurance policy in your portfolio it may provide tax prefer a growth and will provide a tax-free death benefit to cover your estate cost helping you plan for your legacy.

We're just scratching the surface on how insurance protects wealth. Your advisor is key to helping you integrate it into your plan so just like big hair bigger phones it's time to rethink what you think about insurance.

WHY WAIT ANY LONGER. 

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