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www.canadianlawyermag.com 19 SPECIAL PROMOTIONAL FEATURE LIFE INSURANCE is often thought of as something you buy to protect loved ones in the event of your death. Viewed through this lens, the premiums you pay seem more like an expense than an investment. On the other hand, an insurance policy that will take care of your family members and your business partners could let you spend more of your money guilt-free as you age and ease into retirement. From this perspective, life insur- ance is a great investment and well worth the cost. Here's why. "The goal of leaving a big inheritance to your children, a faith group or a favourite charity can discourage a lot of people from tapping into their wealth and enjoying the rewards of their hard work," says David Camps, vice president of marketing and client experience at Lawyers Financial. "That's unfortunate because the strategic use of insurance can let you access your net worth while you're alive, knowing the policy • Replace your income. • Pay for your children's education. • Provide cash to pay probate fees and taxes without needing to liquidate assets. Protecting your business If you are a sole practitioner or member of a small firm, an investment in life insurance has two immediate benefits: 1 It can be used as collateral A term life insurance policy can be assigned to a lender as collateral for a loan or line of credit. Upon your death, the insur- ance company would pay the loan balance, and anything left over from the insurance benefit would be paid to your beneficiaries. 2 It can help in business succession If you are a partner in a law firm, you likely have a buy-sell agreement that addresses the death of a partner. Life insurance can help all of you fulfill the terms of your agreement in a simple, cost-effective manner, allowing you and your remaining partners to focus on your business. Whatever your situation, life insurance is an investment and an important part of a financial plan that allows for more financial options while you are alive and still provides a guaranteed payout to your beneficiaries down the road. Life insurance: expense or investment? will take care of your beneficiaries." As your financial advisor can explain, there are many ways to protect your family and your business interests. The key is assembling the right combination of policies. Protecting your family The younger you are, the less likely you are to have substantial assets that can be handed down to your children or used to pay off debt. As for the assets you do have, the cost of passing them on may erode their value (probate fees and estate taxes could kick in). That's why you should consider an insurance policy such as Lawyers Financial Term 80 Life insurance. It provides a cost- effective and tax-efficient way to protect your family and ensure their financial well-being. A guaranteed payout could be used to: • Pay off your mortgage. • Pay off other outstanding debts. Brought to you by When you think about life insurance, do you consider it an asset or an expense? lawyersfinancial.ca/lifeinsurance LIFE INSURANCE