Scotia Wealth Management Senior Wealth Advisor, Dave Lee, offers Total Wealth Planning to clients in White Rock.

Scotia Wealth Management Senior Wealth Advisor, Dave Lee, offers Total Wealth Planning to clients in White Rock.

Risk Management vs. Wealth Management

Use insurance to manage risk, or to manage your tax burden

Senior Wealth Advisor Dave Lee offers his clients a service called Total Wealth Planning. It means he doesn’t just manage a small section of your financial and life goals, he incorporates a wide variety of specialists to create a comprehensive plan. Insurance Consultant Anthony Windeyer is one of those specialists.

“When I introduce permanent insurance products for wealth accumulation, people often say ‘I’ve never heard of insurance being used this way before!’” Anthony says. “Most people know insurance can protect the finances of a young family, but you can also acquire a significant amount of wealth within an insurance plan, and it grows tax-free.”

4 Insurance types, prioritized:

There are four common types of insurance for risk management. Anthony says there are no ‘good’ or ‘bad’ products, just what would be helpful to you.

  1. Life: Care for loved ones after you die.
  2. Disability: Long term support due to disability. Some people have coverage through their employer, but if you own your own business you need to obtain your own.
  3. Critical Illness: A lump sum that helps you take care of a short-term health issue.
  4. Long Term Care: Offers peace of mind for those who would prefer to receive care in their own home or avoid being dependent on government care.

Using insurance for wealth management

“Insurance is a companion product,” Dave says. “It’s not the solution for everyone, but is a great tool for some people. That’s why Total Wealth Planning is so beneficial — if you’re only talking to an insurance expert they have incentive to guide you towards insurance products. If you’re only talking to an investment professional you may miss insurance opportunities. With a Total Wealth Plan you have more options.”

Insurance as diversifier:

  • Stability. Interest rates are extremely low, and as investors search for yield, they can be exposed to increased volatility. Insurance can be more stable.
  • Avoid tax during your lifetime. Growth is not taxed, and should you ever need money for healthcare, some plans allow tax-free withdrawals.
  • Avoid probate and estate costs. Insurance products can pass tax-free and probate free to beneficiaries.
  • Flexibility. If you need liquidity to grow your business or endure market fluctuations, the cash value in a permanent insurance policy provides several ways of accessing capital.

Dave and Anthony can help you decide if insurance could be useful as a wealth management tool.

Ready to learn more? Call 604.535.4743 to book an appointment with Dave Lee in White Rock, or email dave.lee@scotiawealth.com to discuss investments, life insurance, retirement planning, estate planning, generating income and minimizing your taxes. Follow him on Facebook, Twitter and LinkedIn for more financial insights.

ScotiaMcLeod, a division of Scotia Capital Inc.

EntrepreneursFinancial planninginsuranceSmall Business