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The need to protect your income, assets and family doesn't change just because
you're retiring. This is a good time to review insurance coverage and consider
the options discussed here.
Life Insurance
If a reduction in income would result from the death of you or your partner,
life insurance can provide the financial resources needed in such a difficult
time. A comprehensive review of your situation will indicate the level of coverage
and type of life insurance that best suits your needs.
Long term care insurance
Long-term care insurance gives you the comfort of knowing that you will not
deplete your assets if you or your partner become unable to look after yourselves.
It can also ensure that you will not become a financial burden to your children
or other family members.
Estate insurance strategies
There are a number of ways to protect and enhance your estate through insurance.
Among them:
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A variety of insurance solutions are available to ensure
that the estate your loved ones inherit is not eroded by taxes |
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An insured annuity guarantees an income stream and the life
insurance benefit replaces the capital used to buy the annuity |
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Assigning ownership of a life insurance policy to a charity
can provide immediate tax benefits |
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Properly structured permanent life insurance coverage can
provide a tax-effective transfer of assets to your heirs |
Business succession strategies
If you own your own business, permanent life insurance policies can be used
to balance the estate when not all beneficiaries are participating in the business,
and to make charitable donations that generate tax benefits for your estate.
Corporate insured annuities can reduce taxable income now and provide an eventual
tax-free benefit to shareholders/heirs.
Homeowners and auto insurance
A major unexpected expense due to a fire, theft or accident is not something
you ever want to face, especially when living on your retirement income. This
is a good time to review and update your policies.
An emergency fund
It's prudent to set aside emergency funds so that unexpected expenses don't
cut into the assets you're using for income or growth purposes. A good rule
of thumb is to keep three to six times what you spend on monthly expenses in
an easy-to-access, interest-earning investment, such as a money market mutual
fund or savings account.
- With thanks to TD Canada Trust
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