Frequently Asked Questions

We educate and empower our clients to obtain Financial Control for Life^TM through the adoption of progressive, customized, long-term insurance solutions and investment strategies that provide protection, guaranteed growth and wealth accumulation, while eliminating unnecessary risk. Our vision is to foster opportunity for greater economic independence for all Canadians, by guiding them to be more financially in control of their lives so they can experience prosperity and fulfill their goals and dreams.

For more information see Why MacDev?

Life is unpredictable. Building your roadmap to financial control for life is paramount in laying out a financial strategy that protects you against life’s unexpected surprises and expenses. Our four-step action strategy will provide you with the rock-solid foundation you need to protect your assets, business, family and loved ones for generations to come.

Step 1: Insurance Protection – Financial protection for life starts with insurance.
Step 2: Manage Debt – Financial control for life is about making your money work harder for you—not others.
Step 3: Build a Cash Reserve – Financial flexibility for life is access to your money when you need it for want you want.
Step 4: Wealth Building – Financial freedom for life is building wealth through secure, predictable, long-term, guaranteed savings growth.

For more information on how to build a financial strategy, download our white paper 4 Steps to Achieve Financial Control for Life.

Life insurance is a legal contract between an insurance policyholder (the insured) and an insurance company (the insurer). Upon the policyholder’s death, the insurer pays out a death benefit to a beneficiary of the insured’s choosing. This contract can be in force for life such as whole life insurance which is a permanent life insurance or a specific duration of time such as term insurance. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to the beneficiary upon the insured’s death.

If something were to happen to you today would your family be financially covered and able to sustain the same standard of living? Would your business be able continue operating? Life insurance is not just about you—it’s about providing a protective safety net for your family and even your business.

While life insurance is designed to pay a death benefit, it’s really paying you a living benefit in the form of an income to your loved ones or business shareholders after you’re gone. Even if you don’t have dependents or loved ones you want to protect now, you may in the future. At the end of the day, we believe life insurance is just another term for love assurance.

The best time to purchase life insurance is now. The earlier you start, the better. Premiums tend to be less expensive in your 20s and 30s when your health is optimal and financial obligations less. While many people still purchase life insurance policies at 50 or older, premium costs can be higher as health comes into play. Don’t put off tomorrow what you should purchase today.

Our advisors work with you to fill out a value-based financial needs analysis and risk tolerance score card to help us gain a better understanding of your current financial picture. This process helps us identify your values and attitudes around money, as well as what your needs and short and long-term life goals are financially. A financial needs analysis also helps us determine the kind of capital your survivors will need when you pass, assets available to them, liabilities they will be responsible for and continuing needs for family income and support. From there, we can determine what type of insurance or investment products might best be suited to you. However, you will get a better return over the long-term purchasing whole life insurance which features a cash value versus term insurance which features no cash value.

Premiums on a whole life policy are more expensive because coverage is for life, meaning at one point a death benefit will be paid out. However, premium prices are set for life and never increase in price. As mentioned above, whole life insurance also features a cash value which builds guaranteed equity you can access and use while you’re still living. Imagine this equity as an asset you own and can leverage to finance anything you need whenever you want or use as a collateral for other types of financing. And when managed properly, the cash value of your policy can also provide you with a tax-free, retirement income when you stop working.

While term insurance may be affordable at the onset, it’s because the death benefit is not guaranteed. With each renewal of a term policy, premiums will also increase as you age—to the point they may be priced out of your reach. If you can’t afford whole life insurance from the get go, some term insurance plans can eventually be converted to whole life insurance.

Yes, absolutely. While life insurance provides a protective safety net for your loved ones and estate, it’s also important to protect yourself from life’s uncertainties while you’re alive. Incorporating insurance products that offer living benefits such as critical illness insurance, disability insurance and health insurance are key to protecting your earning power and income in case of an unexpected accident or illness. If you’re an incorporated business owner, setting up a health and welfare trust can provide your company with tax-savings. Depending on the insurer, some whole life insurance plans can also be bundled with a critical illness insurance rider which is more cost-effective.

Our advisors will guide you through each phase of the life insurance application process which starts with filling out a medical and financial questionnaire. These questions are designed to facilitate the underwriting process. Underwriters will do a risk assessment on your application based on your occupation, lifestyle, travel, financial background, medical issues, hobbies and potential beneficiaries. Medical testing may also be a part of the process depending on your age, past health and the amount of insurance you are applying for. Based on the outcome of the underwriting process, the insurance company will then make an informed decision on your application.

If you are not insurable for various reasons (including medical), here are a few options you may consider in planning for retirement and later life expenses.

Segregated fund – A segregated fund is an investment fund that combines the growth potential of a traditional mutual fund with the security and financial protection of a life insurance policy. Sold by life insurance companies, segregated funds are individual insurance contracts that contain a diversified variety of asset mixes that can provide you with a guaranteed investment option when you’re close to retirement. The advantage of a segregated fund is when the market goes down, a portion of the money you invested—75 to 100 percent—is protected if you hold the fund for a certain length of time as defined by your contract (typically a 10-year maturity date).

Annuities – An annuity is a contract between you and a life insurance company that allows you to convert some of your retirement savings from non-registered money such as group retirement or savings plans or from a RRSP, RRIF, or TFSA into guaranteed periodic income, depending on the type of annuity you choose. Annuities are designed to help you with retirement income planning, especially if you’re concerned about possibly outliving your retirement savings.

Funeral Insurance – Funeral insurance is like having life insurance to cover your funeral expenses and any final expenses you may want to take care of. If you can’t afford life insurance or are not insurable but need a way to settle your end of life affairs, funeral insurance is a great, affordable alternative.