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Risk Management & Insurance

Risk Management is the protection of your Financial Planning.  While protecting the client from unforeseen circumstances like premature death or critical illness, risk management is also designed to protect the Estate assets from excessive tax.  Determining your goals and prioritizing them in the Financial Planning process allows us to come up with strategies to ensure that the most important financial goals are taken care of in the event of a death or disability which would dramatically change the household's future cash flow.  Providing for the lifestyle of the surviving spouse and any dependents is of the utmost importance and can often be affordably protected with term insurance in periods of high debt and low disposable income.  Being able to pay for post secondary education is another financial goal where the risk against an unforeseen event can be mitigated.  Some things in life are unpredictable, and the worst time to realize that you are unprepared is during an emergency event.  Effective Risk Management will mitigate these risks so you have the peace of mind to enjoy living life to the fullest and giving you the freedom to focus on family instead of your finances in the face of a disrupting life event.


Effective Risk Management is most effective with a detailed needs analysis, which is a combination of all of the pillars of Financial Planning.  Budgets are analyzed to assess the cash flow required if one or more earners are unable to earn including debt coverage and other fixed expenses (mortgage).  Investments and Assets need to be monitored for future tax liabilities which could be triggered upon death (business, cottage, registered investment balances, etc.).  Retirement Plans can be protected in the event of the loss of ability to earn or for the surviving spouse in the event of premature death.  Most important, Estate assets can be protected from tax because in most cases the marginal tax rate is over 50% in the year of death.  Addressing each of these topics works to minimize the risk exposure of the client;

  • Current Insurance Coverage

  • Life Expectancy

  • Outstanding debts and tax liabilities

  • Projected cash flow in the event of one spouse's death

  • Projected cash flow in the event of a permanent disability

  • Estate Objective

  • Family Health History

  • Final Expenses and taxes

Points of Interest

  • Determine the level of additional insurance coverage required via a needs analysis

  • Determine the client's risk exposure with their willingness AND ability to take on that risk

  • Determine options to reduce risk if the exposure is too high

    • Insurance (Life, Critical Illness, Long Term Disability, etc.)​

    • Debt Reduction

  • Do you have ample coverage for the capital gains tax and/or probate tax on your cottage or vacation property?​

Life Insurance  Needs Analysis

Life Insurance Needed
Total Debts on Death
Total Income Sources on Death
Debts on Death
  • Debt
    • Mortgages, Loans, Credit Cards, etc.​
  • Surviving Family Living Expenses​
    • How much money will your family require for maintaining their life style if you die?​
  • Final Expenses​
    • Funeral, Legal and probate costs​
    • Final taxes
Income Sources on Death
  • Existing Life Insurance
    • Avg employee group benefit is 2x salary
  • Savings and Other Resources​
    • Liquid assets available for expenses and debt coverage​
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