A TOUCH OF FROST #11 – Three Priorities for the Next 12 Months, Annuity Boom & Top 5 Coldest Countries
Three Priorities for the Next 12 Months
I ask you this, if you had to pick only three priorities for the next 12 months, what would they be? Is it debt, or savings, maybe buying a house, a ring, or a new car?!
What about getting insurance? This is something that is a hard conversation but a necessary one. A staggering 42% of Canadians do not have life insurance or are unaware if they have any1. There are various reasons as to why people do not have life insurance, like not enough money to go around, it’s too expensive, or medical requirements. It does not mean that you should ignore it altogether and never set goals to inquire about or buy it.
Again, if you had to pick only three priorities for the next 12 months, what would they be? If you said something along the lines of getting married, having a child, buying a home, or trying to get ahead while you are young, let me tell you how adding insurance to those priorities can help with all the other things mentioned above.
Getting Ahead Young
In your 20s, you don’t necessarily have the commitments, dependents, or debts that a mid-life individual has, but you have time and health. When you have time and health on your side, you will have a lower cost on your life insurance and financial protection for unexpected events (could be for your whole life, if it’s a universal or a whole life policy).
Marriage
No matter how the marriage is laid out, insurance acts as a blanket if the unexpected happens. Whether it is to cover debts, pay bills, hire a nanny/daycare, or act as an income stream for years to come, insurance helps cover these gaps. It helps offset the loss of income or time, while comforting the family, letting them know they are protected and thought of.
Becoming a parent
Much like the above, having insurance in place can support the family’s lifestyle with minimal disruption, if one spouse suddenly passes. Once you welcome a child into the family, insurance becomes even more important. It can be used for funding future education, childcare fees, children’s activities, or day-to-day expenses. You may also consider life insurance for your child as part of your long-term planning.
Buying a home
The mortgage insurance that is offered in Canada actually decreases as you pay off your mortgage and your family doesn’t receive any of the payout. If buying a home is in your future, think about getting personal life insurance to cover not only your mortgage but also any other debts or legacy priorities you may have, that mortgage insurance doesn’t cover.
Given that it is New Year resolutions time and people are thinking about the year to come – whether it is the desire to get ahead, enjoying marriage celebrations, expecting a child, or buying your first home – insurance has a solid case to be in your New Year resolutions. I know, for myself, it will be. All insurance is based on your own situation, needs, wants, and cash flow. There is no one-size-fits-all solution for insurance; everyone should look into what would work for their unique situation and accomplish their goals.
If this sounds like something you want or are interested in, please feel free to reach out to us at The Frost Group: either give us a call at 403-580-4377 or use our Calendly to book an appointment, https://calendly.com/thefrostgroup. For more ways we can help – whether it’s home buying, setting financial goals, or strategies to pay off debt – explore our website www.frostgroup.ca.
To conclude, I ask you this: if you had to pick only three priorities for the next 12 months, what would they be?
What I’m Seeing and Reading
Raymond James Ltd. - Our 2026 Outlook is for a positive year, despite USMCA renegotiation uncertainty
As the new year is right around the corner, our Investment Strategy team in Canada has put together their outlook for 2026 and it looks positive, given the USMCA renegotiation uncertainty.
Larry Adam (Raymond James Financial)
– See chart to the right
Canada Life – Should you get life insurance if you’re single or young?
- Short answer, yes. There are good reasons to support getting life insurance when you are younger. The type of insurance depends on your situation and needs.
Freschia Gonzales at Wealth Professional - Most Canadians trust people not AI for financial decisions
- It is good to see, especially since AI is still learning and in the earlier stages, that most middle-income Canadians are tuning to actual humans rather than AI.
Chip-Ins From the Week – Top 5 Coldest Countries
The top five coldest countries on Earth are typically ranked based on their average annual temperature, as this accounts for both winter lows and summer highs across the entire nation.
Based on this metric, the five coldest countries are generally:
- Russia
- Canada
- Mongolia (surprising to me, didn’t think it was that cold there.)
- Norway
- Kyrgyzstan (again, didn’t think they would make the top five, over the likes of Sweden, Finland, and even Denmark, due to Greenland)
Quote of the Week
“Dinosaurs go extinct. Innovation must be constant.”
— Paul Zummo, CIO at JPMorgan
Enjoy the weekend,
Jonny
Disclaimer: Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The views are those of the author, Jonathan Van Dam, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Raymond James Ltd adheres to. Raymond James Ltd. is a Member Canadian Investor Protection Fund.
