Client Story - Building Wealth and Securing Your Family’s Future

The dual benefits of insurance.

Karim and Sarah, a young couple with two small children, are navigating the financial responsibilities of having a mortgage, car payments and various other debt payments to make. As Karim’s career is on the rise and he is the sole earner, they are increasingly concerned about the potential financial impact of unforeseen events, such as Karim’s inability to work or premature death. They also aim to save for their future, and desire to build a strong legacy that will provide financial security for their children.

These concerns have led to questions about how best to manage their debt while securing their family’s financial future.

• FINANCIAL PLANNING

• Should a situation arise where Karim cannot work, they would have to rely on their savings and tap into their investments, disrupting their long-term plans and risking their financial stability. How can they plan for their future while managing debt? What are their options in case of an emergency?

• INVESTMENT MANAGEMENT

• What assets should they invest in to minimize financial troubles in case of an unexpected event? Should they diversify their portfolio more? Should they hold more cash? Should they invest in a TFSA?

• ESTATE & TRUST SERVICES

• Karim and Sarah do not want their debt to impact their children or their children’s guardians in the event of their premature deaths. What measures can they take to protect their estate and ensure their family is properly cared for?

• INSURANCE SOLUTIONS

• Given the large amount of debt payments relying on a single income, what policies would best protect their lifestyle? What policies would protect their children’s future financial security?

Our Total Wealth Solutions

Karim’s financial advisor collaborates with our insurance specialist to conduct a thorough analysis of the couple’s financial situation. After assessing their goals, potential risks, income projections, assets, liabilities, and needs for their dependents, they determine the appropriate type and amount of insurance needed to protect Karim and Sarah’s family.

The couple is introduced to the concept of using multiple types of insurance to protect their financial future. Risk-based insurance such as Term Life Insurance, Disability Insurance and Critical Illness Insurance can ensure the couple protect their income and have the funding they need to meet their financial goals, even if unexpected events occur.

Additionally, investing in a permanent, cash value life insurance can not only provide estate protection, but also accumulate cash value over time. These insurance policies will be integrated with other financial planning strategies, such as investment and retirement plans, to create a comprehensive protection plan.

* There are additional considerations and risks associated with the purchase of permanent life insurance beyond those discussed here. Policy loans and withdrawals may have tax implications. Before implementing any strategy, consult with your tax and legal advisors.

This publication is for informational purposes only and does not constitute an offer to sell insurance products. It is based on information RJFP believes to be reliable, but its accuracy and completeness cannot be guaranteed. Insurance products are offered through Raymond James Financial Planning Ltd. When providing life insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of Raymond James Financial Planning Ltd. In Quebec, Investment Advisors are acting as Financial Security Advisors of Raymond James Financial Planning Ltd. Raymond James Financial Planning Ltd. is licensed as a financial services firm in the province of Quebec. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters.