Here's a real-life case that we think you’ll find interesting.
A client had purchased a segregated fund with $100,000 and 100% death benefit guarantee. A couple of years later, the market value was $120,000 and the client reset the death benefit to $120,000. Not too long after, there was a market correction and the market value slipped to $105,000. Then, unfortunately, the client passed away.
We know the beneficiary will receive $120,000 because of the 100% death benefit guarantee combined with the reset feature.
Can you guess which question the beneficiary never asked?
If you said: “What was the cost of that investment?”, you would be right. Cost was of no importance because the beneficiary received $120,000 not $105,000. Similarly, have you had a beneficiary ever say they thought life insurance cost too much as you were handing them a cheque for $500,000?
We sometimes get too focused on costs rather than benefits.
As always, we look forward to your thoughts.
Take Care,
Scott Edgington
Regional Manager, Wealth, Ontario
Qualified Financial Services
Rick Gallant
Regional Manager, Wealth, Atlantic Canada and Quebec
Qualified Financial Services
This communication reflects the views of Qualified Financial Services Inc. as of the date published. The information in this publication is for general information purposes only and is not to be construed as providing individual legal, tax, financial or other professional advice. Qualified Financial Services Inc. assumes no responsibility for any errors or omissions in the information contained herein nor for any reliance placed on such information. Please seek independent professional advice before making any decisions.
