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Volatile Markets: Can You Protect Yourself?!

It’s easier than you think

Volatile Markets: Can You Protect Yourself?!

2018 was the worst year for stocks since 2008 but even more worrisome was the volatility we experienced. The Dow swung 1,000 points in one single session alone! This has happened only eight times in its history and five of those took place in 2018.* 
The good news is the Dow Jones had one of its best January’s on record which helped ease the pain of December’s losses. But the question people are asking is, “is there a way to grow our money and have access to it without worrying about market volatility?”

The answer is yes!

If you’re a business owner with a corporation, it’s even better. You can:

·  Grow your assets·  Access your invested cash·  Limit the volatility on your investment
·  Increase the value of your estate and
·  Transfer money to your heirs in the most tax efficient way available today

Joanna’s Story
This strategy was a lifesaver last year for my client Joanna, a business owner who needed some extra funds to grow her business. The problem for Joanna was, when she spoke with her investment advisor, he told her that the market was down and her funds were not performing well at the time, so she wasn’t eager to cash them out. When she asked me what her options were, I explained to her that we could borrow from the cash in her life insurance policy. This allowed her the funds she needed, without worrying about timing the market or market losses and minimized tax consequences for her.  It was the best solution all around.

To find out how this strategy can fit in with your current investments, schedule a call with me today for a complimentary 30-minute consultation.

*To read the CNN article, click here.

Aviva Abraham is a group benefits and insurance advisor at Creative Planning. She has been providing healthcare solutions for self-employed and business owners since 2010. 

Anna Kendrick Photo by Steve Granitz/WireImage.com

Anna Kendrick’s important message after her hospitalization

WireImage.com

If you enjoyed watching Pitch Perfect (1,2 and 3), you’d recognize the name Anna Kendrick – the musically gifted star of these movies.

Recently, Anna experienced several extremely painful episodes, it turns out, from kidney stones. She admitted to trying to work through the pain, hoping everything would subside and she wouldn’t have to miss time from her busy schedule!

Does this sound familiar, especially to the women who are reading this?

A recent study from Yale University found that men are more likely to complain of symptoms caused by illness or injury, while women often downplay pain out of fear of neglecting their daily tasks. However, this neglect can cause serious consequences if symptoms are ignored for too long. 

What did Anna learn from this that she wants to pass on (excuse the pun!) to all women?

After expressing her thanks to the nurses who treated her, the actress pleaded with women to put their health first and seek medical help rather than trying to push through their illness.

“I was worried that my pain would turn out to be “nothing serious” or something that I should have been able to fight through. I’m so grateful to these women (who treated her)…..” she said.

Definitely, something to keep in mind the next time you’re in pain or get sick…

Want to find out how you can protect your health and get the care you need? Contact me to schedule a complimentary 30-minute consultation.


If you like Anna’s music as much as I do, click here and enjoy!

Aviva Abraham is a group benefits and insurance advisor at Creative Planning. She has been providing healthcare solutions for self-employed and business owners since 2010. 

Know Anyone Getting Divorced?

3 Questions Commonly Asked About Insurance And Divorce

It’s estimated that 48% of marriages will end in divorce. It’s a stressful and difficult time, even if the divorce is amicable. There are many details to sort through and agree upon, including insurance coverage.

Here are 3 questions people always ask me about insurance coverage during and after divorce:

  1. How can I provide insurance for spousal and/or child support if I have health issues? It’s possible in many cases to get insurance coverage, depending what your health issues are and how long ago you were diagnosed. There are insurers who provide coverage though it’ll be at slightly higher than standard rates.
  1. Can I use an existing policy to cover my support obligation? Just name your ex- partner or child as irrevocable beneficiary for some or all of the policy until your obligation is over, no need to hassle about getting a new policy.
  1. What is the cheapest way to get both parties covered to protect the children? A popular, and less expensive option today is to take a joint and first to die policy, which means there is one policy, and only one payout (which is why it is cheaper), on whomever dies first.

And here’s a question many separating couples don’t consider:

How much will it cost to get new health insurance? 

Too often I hear about women losing their ex-husband’s group coverage, and had no idea how expensive it would be to get coverage on their own. Some don’t even qualify for plans similar to what they used to have due to health challenges. This issue needs to be addressed during the divorce process.

 

Thinking about splitting up? Need advice before making a move?

Here are 2 trusted advisors who can help:

Bev LewisPositive Solution Mediation Services
Bev helps couples and families going through divorce by providing mediation services. Her clients leave with a legal separation agreement in a fraction of the time and cost of going through lawyers and the courts.

Michael ShusterShuster Real Estate Group
Michael is the first and currently the only Divorce Real Estate Broker in Canada, specializing in all the details one needs to know when selling a home due to separation and divorce.

 

Know anyone going through divorce? Share this post with them.

Have questions about finding the right life and health insurance? Need a review of your existing insurance coverage? Contact me today for your complimentary 30 minute consultation.

Aviva Abraham is a group benefits and insurance advisor at Creative Planning. She has been providing healthcare solutions for self employed and business owners since 2010. 
Money in the bank

5 Pitfalls of Bank Mortgage Insurance

 

Cory’s story

Susan and Cory bought their first home in Vaughan in 2012; they were excited and a bit overwhelmed. There were so many decisions to make, so when their bank offered them mortgage insurance, they immediately accepted it. What they didn’t know was that it protected the bank more than it protected them. When Cory got sick with cancer a year later, they found out that they were in fact not covered – the bank discovered that Cory forgot to disclose an illness from ten years ago and their claim was denied. (Read what Toronto Star’s Ellen Roseman wrote about mortgage insurance here).

Why shouldn’t you buy mortgage insurance from your bank?

Although mortgage insurance is easy and convenient to obtain from your bank, it is to your advantage to  apply for individually owned term life insurance.

Here are 5 reasons why not to use your bank for mortgage insurance, and how term insurance protects your family in ways your bank cannot:

#1 Bank mortgage insurance protects the bank, not your family.
The money is paid out to your bank, not your family. Term life insurance gets paid directly to your family to use as they need.

 

#2 Bank mortgage insurance coverage declines as your mortgage balance is paid down.
You continue to pay the same premiums even though your actual coverage is reduced each year. Term life coverage remains the same throughout.

 

#3 Bank insurance rates are higher than term insurance rates.
Since they don’t do a full medical assessment to determine your health and risk of dying, you pay significantly more than if you would purchase an individual policy.

 

#4 Banks only do medical underwriting at claim time, not at the time of application.
Should the bank discover an issue, as in Cory’s case, they can deny your claim. Getting medically underwritten for individual term insurance avoids that problem.

 

#5 Bank mortgage insurance is non-transferable when you move.
When you move houses or lenders, you must take new mortgage insurance each time; with term insurance, you can keep your coverage no matter how many times you move.

 

 

Have questions about your mortgage or other insurance? Want to find out how you can save money on your insurance costs? Contact me for a complimentary 30-minute consultation.

Aviva Abraham is a group benefits and insurance advisor at Creative Planning. She has been providing healthcare solutions for self-employed and business owners since 2010.