George & Kathy McMann
The People
- Early 60′s, retired
- Married
- 1 son, 1 daughter, 3 grandchildren
The Situation
With their working years behind them, they’re in the “management” stage of life. Managing their money is the focus of almost all their financial planning.
Insurance is especially helpful in the management stage. Health coverage, of course, becomes extremely important. And the wealth preservation features of life insurance products really shine during retirement years.
George is covered by a permanent life insurance policy he purchased in his 40s. During their working years, George and Kathy were covered by group insurance plans from their employers. But they gave no thought to insurance when that coverage ended.
What We Did for George & Kathy
George and Kathy had always thought of insurance only in terms of the Family Security and Income Protection components. With their working years over and their children now adults, George and Kathy didn’t think they needed an insurance portfolio.
But now they’re learning about the Health Protection and Wealth Accumulation components. They realize that insurance is as important as ever – just for different reasons.
George and Kathy asked us to identify insurance solutions that are appropriate to their life stage and meet their specific needs. These solutions are listed below. With our help, George and Kathy chose the solutions that made sense to them and fit within their budget. They’ll revisit their insurance portfolio in a year to discuss any changes.
- Critical illness insurance – George, 66, is one year past the eligibility age for critical illness insurance. Kathy can still purchase this coverage, but the premiums are high at her age. They decide that those dollars are better spent elsewhere.
- Long-term care insurance - Both George and Kathy are purchasing long-term care insurance. Should they ever require help taking care of themselves, they don’t want the high costs of long-term care eroding their savings.
- Permanent life insurance for estate preservation – With the help of their Assante advisor, George and Kathy purchase a permanent life insurance policy with an affordable annual premium, which pays a death benefit equal to the tax that will be payable on their investments. The death benefit goes to the children, who can use the payment to offset the tax payable. And their estate is preserved.
- Life annuity combined with life insurance – George and Kathy are using non-registered assets to buy an annuity, as they like the idea of guaranteed income for life that outperforms fixed income investments. In addition, their Assante advisor showed them how to combine the annuity with life insurance, so the capital invested in the annuity is preserved for heirs.
- Permanent life insurance for estate equalization – George and Kathy’s summer home will go to their daughter. Their son, who lives out of the province, will receive the death benefit on the whole life policy George purchased in his 40s.Talk to your Assante advisor about developing your own customized insurance portfolio.
Would you like to find out which insurance solutions meet your unique needs?
Talk to us about developing your own customized insurance portfolio.
