Why Bestplan?...Because Money Doesn't Come With Instructions!
Life is full of constant changes, so pro-active financial planning involves addressing the whole financial picture. By establishing financial foundation blocks and creating a logical order, you can begin to prioritize and make effective choices as to where your money should be spent, or best invested to meet your goals. - Ralph Umansky

» Click here to view and print out your financial planning checklist.

Protection
The first level of the foundation involves adequate Life Insurance, Long Term Disability, Critical Illness and later Long Term Care. These programs should be designed to respond to life changes. When you accumulate the appropriate funds, you may decide to reduce or eliminate the insurance.

Holistic planning includes enjoyment of life, family and reduced stress. If the goal was to simply accumulate wealth for retirement, you may become richer, but will you be healthy enough to be able to enjoy your life later?

Life Insurance
Most forms of life insurance (term, group, whole life, universal life) pay a tax-free sum to a named beneficiary, upon the death of the life insured. However the similarity ends there. Some insurance is needed to cover the risk of "premature" death or disability, only until the children are grown and debts are paid. Another type of insurance should continue for life, to provide ongoing income, emergency funds, estimated estate taxation, and payment of funeral expenses.

Younger families with higher debts/mortgages and young children may need more life insurance in the first 20 years. It is important to determine lifelong Permanent insurance needs, as well as the amount needed only for a short Term (less than 25 years). Be aware that renewal rates for 5 to 10 year Term life insurance can increase as much as 300%-400% . You can create a proper modular insurance plan tailored to meet your needs that will not only offer you the best value, but also significantly lower your long-term costs.

Generally, your needs determine which plan is right for you. Term and group insurance could be used to top-up permanent plans. Start with term insurance (convertible to permanent) if money is tight, but remember that in future, permanent insurance rates will increase, based on your age at that time. A combination of term, group, and permanent life insurance could allow future flexibility. With this strategy, once the children are grown and debts are paid, you can reduce or eliminate the term insurance, leaving permanent insurance in place for your lifelong needs. Your plan should be reviewed and updated regularly, to reflect life-changing events, goals, inflation, and other factors. Life insurance policies are not all equal and the differences may be substantial. The same applies to insurance companies. Some offer far greater future options, and have better financial strengths than others.

The right insurance combination can offer value and lasting peace of mind, but the wrong insurance plan may prove very expensive in the long run.

Click here for a copy of Ralph's new book.

Critical Illness
According to the Canadian Cancer Society, the Heart and Stroke Foundation of Canada and Statistics Canada:

• One in three women and two in five men will develop some form of cancer over their lifetime.
  
  
• One in every 2 Canadians will contract heart disease; half the victims of heart disease are younger than 65.
  
  
• One in every 3 Canadians will develop some form of life-threatening illness; 40,000 to 50,000 new strokes are reported annually in Canada.

Critical illness insurance provides a lump sum payment after diagnosis and survival of a defined critical illness.
The money is yours to use in any way you wish. Some companies offer fixed terms, and others, permanent coverage.
A return-of-premium feature (if a claim is not made) is available from several companies.

Coverage varies from only a few diseases to a wide range, including;

• heart attack,
• coronary bypass surgery,
• stroke,
• cancers,
• kidney failure,
• paraplegia,
• blindness,
• deafness,
• Multiple Sclerosis,
• Alzheimer's disease
• coma, etc.

Good News: Your chances of survival are getting better!
Bad News: Without the right contingency plan, the cost of survival could bankrupt you.

Long Term Disability Insurance:
The chances of a 35-year-old becoming disabled for at least 90 days before age 65 are 5 out of 9, according to an insurance company study. If the disability lasts longer than 90 days, the average duration could be 2.8 years. The same 35-year-old making $5,000 per month (with a 5% increase annually) would lose more than $2.8 million of income during their remaining working life. This amount exceeds the value of a home, car or other assets which we protect. Are you adequately insured for long-term disability? Of the many choices of policies available, some have numerous restrictions, while others offer rates guaranteed to age 65. A personal long-term disability plan provides many advantages over a group plan, especially to self-employed professionals, contract workers, and partners in business.

Long Term Care Insurance:

Today’s rate for nursing home care can be greater than $110.00 per day. With Government subsidies being removed, this could be twice the amount of a regular home mortgage payment.

This new style of insurance, offered by a few Canadian insurance companies, addresses the enormous costs for both home care and nursing home care. As the life span of our population increases, we all may need assistance eventually. The aging process can prevent us from doing what we now take for granted. The insurance pays for both cognitive impairment (inability to think, perceive, reason or remember) or physical infirmities (inability to perform 2 of 5 activities of daily living - ADL’s which include: bathing, dressing, eating, toilet, or changing body positions). Will you be able to afford part or all of the costs of such services on a fixed retirement income? You may not qualify for some government benefits, as subsidies are predicated on income. Will your loved ones be required to leave their jobs to provide the necessary care? There are a number of factors and variations to consider with this insurance, so consult a knowledgeable and experienced professional.

Click here for a copy of Ralph's new book.

Failure to adequately protect your family's financial security can lead to financial ruin and unravel all of your efforts to grow your wealth and complete your future plans.

E+O.E.