Frequently Asked Questions

For your convenience, we have assembled the answers to many frequently asked questions. If you are unable to find the answer to your question, please feel free to contact our office and one of our Professional Insurance Advisors will be pleased to assist you. Comments or suggestions on how we can continually improve the content of our website are welcome. Please e-mail us with your comments.

Financial Services Insurance

Is my personal insurance coverage adequate?
Why do I need a Will?
What is a Personal Property Power of Attorney?
What is a Power of Attorney for Personal Care?
What is the "Rule of 72"?
How much should I be saving?

Is my personal insurance coverage adequate?

It is recommended that you have your personal needs assessed by a professional to help determine the coverage you should obtain for material loss, death, disability, illness, etc. In the event of death, a life insurance policy may be essential for providing your dependants with replacement income or paying off your debts, such as a mortgage or inheritance tax. Take the time to consider disability and critical illness coverages, since an inability to work can have serious financial consequences. Also, make sure you have policies that provide adequate coverage for your home, automobile and other personal belongings.

Why do I need a Will?

If you die intestate (without a Will), your assets will be distributed according to provincial law and perhaps differently than you intended. Your Will should be reviewed about every five years or whenever there is a change in your family circumstances. You should discuss any changes to your Will with your legal advisor.

What is a Personal Property Power of Attorney?

It is a legal document authorizing that a third party be responsible to act as your representative regarding all financial issues including entering into purchase and sale agreements, etc. It is imperative that you trust the named individual(s) implicitly, as the agreements are legally binding. To reduce the possibility of misuse, clients often request that an independent party hold the Power of Attorney for Personal Property in their care until the need for such a document is warranted.

What is a Power of Attorney for Personal Care?

A Power of Attorney for Personal Care is a legal document that assigns responsibility to another person (someone you would trust and often a family member) to represent your wishes regarding your personal care in the event you are ill and unable to make decisions.

What is the "Rule of 72"?

A simple rule of thumb for estimating how quickly your assets will grow. Take the number 72 and divide it by your rate of return and this will tell you how long it will take to double your assets. If you are earning 8%, your assets will double every 9 years, (72/8).

How much should I be saving?

It is recommended that you attempt to save a regular amount of at least 10% of your income each month and use the balance for your expenses. This is known as the "pay yourself first plan". Have this amount regularly transferred to a separate account on a monthly basis.