All posts by Financial Independence Hub

Life Insurance denied? Top reasons this could happen

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By Lorne Marr, LSM Insurance

Special to the Financial Independence Hub

Life Insurance is designed to provide a financial safety net to the ones left behind in the unfortunate event of death. However, there may be instances when an insurance claim is denied. The best way to avoid this from happening is to follow the rules. Understand your policy and follow these simple rules to ensure your investment in your family’s future will be protected.

1.) Lying On Your Application

Leaving out certain items or fudging the truth a bit might sound harmless enough, but it could mean the difference between a payout and a denial when it comes time for your beneficiaries to collect. The application may seem large and some of the questions might sound like an invasion of privacy, but the insurance company is taking a big risk insuring you. They need as much information as possible in order to properly assess your situation.

Insurance companies can uncover any lies or secrets you may want to hide. Lying on your application is a breech of contract, which means your claim will be denied.

2.) Unintentionally Leaving Out Information

You are supposed to be completely honest when filling out an application. What if you unintentionally leave something out like a routine checkup? Even if your checkout came out clean, be leaving it out the insurance company might automatically assume you have something to hide.

Take your time when completing the application to ensure nothing is left out, no matter how minor it may seem. If you are unsure of an answer, find out. A simple call to your doctor will confirm the date of your last visit. By rushing or guessing, you could nullify your policy.

3.) Using an Under-qualified Agent

Most people will only need to complete one or two life insurance applications in their lifetime. Continue Reading…

A nation of financial illiterates?

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By John Shmuel, Managing Editor, LowestRates.ca

Special to the Financial Independence Hub

Do you consider yourself financially literate?

When we posed that question to Canadians last month in an IPSOS survey, the overwhelming majority — 78% — said yes.

Canadians are clearly confident about their financial knowledge. But their actual knowledge, unfortunately, is lacking. When we followed up our initial question with a quiz, comprised of 15 intermediate questions about financial products, the majority of Canadians (57%) failed.

It should be noted that these weren’t simple questions. But they also weren’t questions that require special certification or an advanced knowledge of finance. One question asked whether there were financial institutions in Canada that offer free chequing accounts (there are). Another asked whether you needed a special license to buy stocks (you don’t).

Failure to know the answers to these questions shows that Canadians are confused about financial products. And financial institutions take advantage of that.

Let’s return to the question on chequing accounts. About 34% of those surveyed said they thought all banks charge you money to have a chequing account. Another 14% said they didn’t know the answer. With nearly half of Canadians not realizing free chequing accounts are an option, it’s no surprise many financial institutions continue to charge for them.

Then there is the issue of mortgages. Of our 15 questions, Canadians struggled with ones related to mortgages more than any other. For instance, we asked whether a mortgage term refers to the length of time you need to pay off your mortgage. 51% of Canadians answered incorrectly. Another 18% said they don’t know. (For those wondering amortization refers to the length of a mortgage, a term is how long variables such as your interest rate are in effect.)

So what?, you might say. What does a mortgage term have to do with being knowledgeable about finance?

It all comes down to empowerment. If you’re familiar with how a financial product works, you’re more likely to be confident in getting the best deal for that product. Knowing what a mortgage term is you probably know that you can negotiate mortgage rates, or that you can go online and see different rates from rival banks and brokerages. Continue Reading…

Time is running out: Creating an audacious Retirement plan

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By Sean Riggs

Special to the Financial Independence Hub

It’s already midlife, the bills are piling up and you haven’t started saving up for retirement. This might be a scary time in your life but the most important thing is not to panic. Rather, take comfort in the fact that as long as you are breathing, there is still time for you to create an audacious retirement plan. This ensures that you have enough funds saved for a secure future when you are not as productive.

1.) Tally savings and future income sources

Start by identifying how much you have in savings, what your sources of income will be in retirement and just how much you will need to retire comfortably. An understanding of your situation will also help you budget accordingly for your desired retirement lifestyle.

2.) Investigate employer pensions

If you are employed, ask about sponsored retirement plans by your employer. Some employers may contribute to your retirement package and it is your duty to ensure that this happens. You need to start contributing as fast as possible so you can catch up and manage to save enough for retirement.

3.) Cut expenses or find new revenue streams

Time may be running out but for the sake of your retirement, try to reduce expenses or find other revenue streams. This way you will boost taxable savings and create a nest to fall back on when you can no longer work.

4.) Start a business or buy one

Continue Reading…

Is Canada’s Housing market starting to cool?

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By Gordon Powers, Zoocasa.com

Special to the Financial Independence Hub

Canadians’ confidence in the housing market hit an all-time high less than a month ago, but the mood across the country seems to have shifted significantly in recent weeks.

Home sales across Canada fell by 6.2 per cent in May 2017, largely due to a sharp drop in Toronto, according to the most recent figures from the Canadian Real Estate Association. The month-over-month percentage decline was the largest since August 2012.

In nearly two-thirds of all local markets across Canada, sales were off. The decline was led by a 6.7 per cent drop in the GTA, where potential home buyers seem to be moving to the sidelines, delaying their purchase decisions in the hope of a drop in runaway home prices.

Prices beginning to shift slightly

The national average price for homes sold in May was $530,304, up 4.3 per cent from where it stood a year ago. While that number has been pulled sharply upward by transactions in the GTA and Vancouver – excluding these two markets trims more than $130,000 from the national average price of $398,546 – there’s no question that prices have dropped off in certain areas of the country

Prices in the GTA declined in May for the first time in years, according to recent figures from the Toronto Real Estate Board.

While home prices in and about Toronto rose 14.9 per cent year over year, they were actually 6.2 per cent cheaper between April and May, the first full month-long period following the implementation of the Ontario Fair Housing Plan rules.

The TREB May resale numbers reveal GTA sales dropped 20.3 per cent year over year with detached home sales leading the slide at 26.3 per cent, Toronto condo sales backing off 6.4 per cent, and Toronto townhouse sales declining at 18.1 per cent. Continue Reading…

Retirement STILL Rocks

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Heather Compton & Dennis Blas, coauthors of Retirement Still Rocks

By Heather Compton and Dennis Blas

Special to the Financial Independence Hub

Since retiring in 2004, we’ve learned a thing or two.  Foremost, a rockin’ retirement requires more than a bucket list: it’s not a given, it’s a statement of intention. A satisfying retirement requires finding new ways to satisfy our needs and utilize the skills and talents that give us the greatest satisfaction. Like a working career, a retirement career unfolds, develops, progresses and changes as life circumstances unfold. This doesn’t mean some front-end planning won’t be useful. Our cornerstones for a rockin’ retirement include Lifestyle, Relationship and Finances.

Go-Go to Slow-Go to (sigh) … No-Go

Many of us will have a third act lasting 30 plus years and few will plan for the full-stop retirement of a previous generation.  All play and no work also makes Jack a very dull boy! We may think of retirement as one long time frame, but those who study aging divide it into three distinct phases: the go-go, slow-go and no-go years. Certain Victory Lap careers, travel destinations and budding interests must be pursued in the go-go years; others might wait until the slow-go. Either way, you’ll want to mind-bank lots of great life experiences to relive in the no-go years! Continue Reading…