The Good News

The good news for those that already own life insurance is that it won’t; not even a little bit.

One of the benefits of obtaining life insurance at a young age, or anytime for that matter, is that it’s as though the life insurance company is taking a snap shot of your health at that exact moment. As long as you are honest and truthful with the information you provide, you are forever covered as long as you keep the insurance premiums and policy up to date, regardless if your health status changes in the future.

The Not so Good News

For those who don’t own life insurance at this time, this new breakout could play a substantial role in the possibility of whether you can or will be able to insure yourself in the future, should you be exposed to it.

Just because an insurance company may not ask the direct question like “Have you been diagnosed with the H1N1 virus?” does not mean you don’t have to worry about this new virus. In fact, most insurance companies will ask broad sweeping questions in their application such as:

1. Have you consulted any physician within the past five years for anything not covered in the above questions or in this application?
2. Are you aware of any symptoms or complaints regarding your health for which you have not yet consulted a physician?
3. Have you had any symptoms, illness, injury, surgery, treatment or investigation, or been advised to receive treatment or investigation, or examination not mentioned above?

A simple yes to any of these questions could not only postpone your approval indefinitely, but also raise red flags that as a potential life insurance applicant, you’d rather not face.

Most insurance companies will not accept a new client if they are currently undergoing testing or treatment for any illness within the last six months, H1N1 included. What that means is that if you are exposed or worse, diagnosed with this virus, the insurance company could either rate your request for life insurance, postpone your approval, or flat out decline you for life, depending on the severity of your specific situation.

 Your Take-Away: If you are or have been looking to insure yourself or your family for life insurance, disability insurance or critical illness insurance, or may be considering raising your policy, we recommend that you consider doing so sooner rather then later.

Below are a couple of reasons you may want to consider when deciding if now is the time to look into adding to or setting up your insurance program:

1. You have visited a medical facility within the last 3 months and potentially been “exposed”
2. You have a friend, family member or colleague who has actually been diagnosed with H1N1
3. Insurance companies are far more flexible and lenient during the last two months of the year

Until next time, have  Terrific Thursday!

Chris and Elisseos

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Despite the fact that the title of this article comes across as very “Agent Focused”, Tim actually focuses on five great reasons to consider owning life insurance. The five reasons that Tim discusses include:

1. Provide for Others
2. Cover Final Disbursements
3. Provide Equitable or Larger Bequests
4. Shelter Income From Tax
5. Maintain Business Health

I really enjoyed this article because Tim provides a very “birds eye view” of life insurance and some of it’s core and primary uses overall. The one that really sticks out to me however is point four entitled “Shelter Income From Tax”. After all, we live in a country where we can pay up to 50% of our income back to the Government in the form of taxes, so why wouldn’t we want to explore all of our tax shelter opportunities?

Your Take-Away: Life insurance is a topic that is not easily discussed in general conversation, and rarely ever praised. That said, the basic reason people purchase life insurance is love, and if you’ve ever received a life claim as a result of a loved ones passing, you have likely become a big advocate.

The good news however is that whether you want to purchase life insurance for others or not, it is still very much worth your time and effort to understand how it works and more importantly, how it can save you literally thousands of dollars of tax in a year. Most of us really aren’t aware of these kinds of benefits and how to properly structure life insurance for this purpose, but after looking at the facts and the numbers, you may just find that you’ve piqued your own interest!

Until next time, have a wonderful long weekend!

Chris

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Here are some things to think about:

1. Today’s variable-rate mortgages still have higher interest rate premiums relative to those in the past
2. A 1-year mortgage doesn’t lock you into a rate for 3-5 years which means you can refinance in 12 months when (hopefully) discounts to prime might be back
3. The rates are comparable: Variable and 1-year mortgages are both based on short-term interest rates, so they move together over time
4. In some unique cases, rates on 1-year mortgages are better than today’s best variable rates
5. The most flexible 1-year mortgages are convertible into a fixed OR variable rate at any time, and at no cost
6. 1-years give you a chance to haggle with your lender again in 12 months which may or may not be a positive for you
7. If rates go up in the next 12 months, you’re protected for the remainder of the term in a fixed-rate mortgage
8. If rates steadily climb over the course of five years, 1-year terms could help you come out further ahead because 1-year rates reset slower than variable rates—which is helpful when rates are rising
9. 1-year payments are fixed for a longer period of time than variable payments which makes budgeting easier

Your Take-Away: Any time you are making a decision regarding the term and structure of your mortgage, it is imperative to take into account all of your options along with the pros and cons of each. The truth is, there is no “one size fits all” solution which is why a proper consultation can prove to be so beneficial and necessary.

After all, the only way to truly know which term or structure is best for you is to a number of different variables including your epected time in your existing home, your current cash flow needs and flexibility, your overall goals and objectives in terms of your mortgage, and so on. Don’t think that just because one option may have a better rate then the other that your answer is easy…there is far more to this decision then just looking at the rates.

As always, have a Terrific Thursday!

Chris and Elisseos

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In their report, they went on to say “The average delinquency rate for Canada rose by approximately 19% over a one-year span from May 31, 2008 to May 31, 2009…This means that over a half a million Canadians are now more than 90 days behind on their credit payments.”

What’s even scarier to me is that Equifax claims “The sharpest increase has resulted from Credit Card and Sales Finance purchases, which have increased by 38% and 58%, respectively, since May 2008. Such transactions typically represent the purchase of durable goods, such as furniture or electronics, and consumers appear to be willing to fall behind on them first before they miss payments on their Bank Loans and Lines of Credit.”

You’re Take-Away: This information may not be news to you, nor may it make any difference to you if you’re one of those lucky few who are able to live debt free or at least manage your debt payments. The one lesson that stands out to me however is that we need to be learn to manage our cash flow better, for the sake of our financial futures and credit ratings.

After all, the reality is that those falling behind aren’t doing so in terms of their mortgages or lines of credits mainly. In fact, they’re falling behind on payments that have resulted largely from consumer purchases, which I like to call, consumer wants. The financial companies that offer no interest or payments for a year or more are still making money or they wouldn’t offer the program in the first place. Read the fine print. If you miss your payment by a day, they will back charge you for the entire period of time that you haven’t paid anything with interest rates as high as 24% and more.

The long and short, if you’re going to purchase anything using a store issued credit card, make sure to make a note and pay that purchase off at least one week prior to the deadline. If you don’t, you will see your bill jump dramatically and possibly join the Canadians mentioned above in the Equifax report.

Until next time, happy spending and have a Terrific Tuesday!

Chris

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If you understand how a mortgage pre-approval works, its probably a safe assumption that you understand that the benefit is very much in the favor of the mortgage client rather then the mortgage Lender. After all, in order for a Lender to provide an authentic pre-approval, they have to run through the same administrative process they would for a new mortgage client with a firm commitment. However, with a pre-approval the client always has the option of opting out and walking away from the deal considering there is no penalty or loss to do so.

Recently, one large bank has officially removed themself from the pre-approval market based on the internal costs incurred as a result of providing this service. In reality, less then one third of pre-approvals actually close and in the case of the major lender mentioned above, it is rumored that they had been losing $20 million in business each year before they decided to pull that service from their product shelf.

Your Take-Away: To me it seems clear that a pre-approval is really an attempt by the Lenders of the world to get their feet in the door with potential mortgage clients by offering a service that actually may or may not prove to be of any value to them from a business perspective. If that is in fact true, that implies that you as a potential client hold all the cards.

Many people feel as though they are locked in when they put a pre-approval in place or that it can somehow prove to be detrimental to their search for a mortgage. There are no penalties, nothing locking you in to any one lender, and no drawbacks to getting pre-approved. After all, if there were then the Lenders would be making money, not losing it.

My suggestion, if you are even thinking about moving or refinancing, put a pre-approval in place as soon as possible and lock in the best rate possible for the next 120 days.

Until next time, have a Terrific Tuesday.

Chris

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Although this is not at all related to our regular posts on this blog, I felt it necessary to post the link below both out of respect for what Susan accomplished, and also as a reminder that we can’t be too quick to judge. I apologize in advance to anyone who didn’t expect this post on our blog, and I hope you can understand that our blog isn’t about just people’s money, it’s about the people we help with their money. And this video is very much about all of us, as people.

Watch this very short video and be inspired, be awestruck, and be reminded!

Until next time, have a Terrific Thursday!

Chris

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Ellen Roseman of The Toronto Star recently documented one couple’s fight to get paid on a death claim that was made through their TD Canada Trust. We’ve talked about the perils of Mortgage Insurance offered through your lender in posts before, but this story is a real life experience for one Toronto based couple and I’m sure it will make you question where you hold your insurance.

The good news is that despite the original decline of their claim, to TD’s credit they did revisit the situation once the Star became involved and later paid out the claim in full. The reality however is that had they not gone to the Star for help, they may never have received that money. And even if they would have, do you think they really wanted to have to fight for something they knew all along they were entitled too? Never mind the fact that they were also in the midst of dealing with the news of a terminal Cancer diagnosis. Perfet timing it seems?!?

Your Take-Away: The most chilling comment written by Ellen was quite poignant, and one you should seriously considering thinking through. Ellen wrote: “The lesson: Banks can issue insurance and deny coverage years later if they think there was misrepresentation on an application.”

I can’t help but think it may just be time to at least explore your other life insurance options, mainly because the underwriting is done up front, not at claim time. And after all, you’re most likely going to save some money too. Not a bad thing considering the current status of our economy!

Until next time, have a very Happy Easter!

Chris

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We are hosting a prayer vigil TONIGHT at Six Steps Restaurant at 6:00pm. We are asking anyone to join us at 55 Colborne Street whether you pray or not, whether you know him or not, or whether you simply can be here to support those involved.

I’m calling anyone we know to join us tonight and lift our thoughts and concerns to our God. Please…if you can be here then do just that. It’s time put aside anything other then our friend and relative George Koutroubis and ask that God will provide wisdom, strength and clarity to those involved.

Thank you in advance for your continued prayers and support.

Chris & Elisseos

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A good friend of ours has been missing since Tuesday. He was last spoken too around 4:00pm and last seen around 7:30am that same morning. I have attached the press release below and a link to the official report on www.cp24.com can be found here with a picture as well: http://www.cp24.com/servlet/an/local/CTVNews/20090218/090218_missing_man/20090218/?hub=CP24Home

MISSING PERSONS REPORT: 

The family and friends of a missing Toronto restaurant owner have launched a massive online and in-person search for the missing man.

George Koutroubis, owner of Six Steps Restaurant on Colbourne Street, was last seen on Tuesday at 7:30 a.m. near Front Street and Blue Jays Way, police say.

However, friends of the missing man say they have received reports he contacted someone from his cellphone later that day while driving in Whitby.

The 36-year-old is described as white, five foot eleven and 230 pounds with brown eyes and short, black, receding hair. He was last seen driving a black, 2008 BMW X5 with Ontario licence plate BCSS 209.

Police say they are concerned for his safety, and his friends have organized a search in areas of Toronto and Whitby. They are posting up-to-date information on Twitter in hopes that the site’s users will have information on his whereabouts.

According to the Twitter posts, Koutroubis’ vehicle also remains missing. It is reportedly decorated with a Pittsburgh Steelers license plate border.

Six Steps is an upscale Italian restaurant located near Yonge and King Streets. It has been open since 2007.

Anyone with information is asked to contact Crime Stoppers anonymously at 416−222−TIPS (8477).

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