Paul Lalonde CLU
President/Advisor at Twin Power Financial
1. What type of life insurance do you own?
I love insurance! I own about 14 different life insurance policies on my family. The reason for so many policies is that I have a large term policy and as my financial situation improves, I convert it to participating whole life insurance. It’s my favourite insurance, as I love the peace of mind it offers: guaranteed cash values, guaranteed premium, and guaranteed death benefit. Plus, no other vehicle has so much flexibility. Locking in the rates as soon as possible is important to me, which is why I have so many policies. I convert term policies almost yearly and plan to have even more in the future. Term is great to cover my insurance needs in the short term, butWhole Life protects my family if I die too soon and protects me if I live too long. It truly is an amazing product and one of the most under-utilized vehicles on the market. Most people have never had it explained to them, which makes it one of the best-kept secrets in Canada.
2. What factors did you consider when determining the coverage amount?
I have three young children at home and a wife who is dependent on my income. My family is truly the most important thing in my life and I want to make sure that if something happened to me, my wife has the option to be a full-time mother to my children. I basically added up all my debt, how much it would take to educate my children, and I used ten times my income as a factor. I added all three up and came up with my desired insurance amount. Having done over 100 death claims in my career, I’ve never heard a widow say the cheque was too big. The idea of being worth more dead than alive is funny to some, but it gives me a sense of peace. I know I’m worth more alive to my family, but it’s a comforting thought for me to know my family’s financial well-being will continue without me, should the worst happen.
3. Do you believe in life insurance for children?
Absolutely! My father bought insurance on me as a child and it’s grown to be one of my best assets. I had the application on my children filled out even before they were born. I’m a big fan of 20-pay Participating Whole Life policies on kids. No other financial instrument can do all the things whole life will do for them. It will be there at every step of their lives until death. There are so many features that I love. I didn’t buy the insurance on them. I bought it for them as a gift in their future. Some parents say they don’t want to make money on their kids if they died. I personally think that is a foolish thought. To me, the coverage is to help the parents pay for final expenses, but more importantly, to afford them the time to be with their families during the grieving process. If something happened to one of my kids, I know I would not go to work for some time and I would focus on getting that sense of security back to the family. If anything is extra, I would use it for seed money to start a foundation in my child’s name. The idea is that I will never see the money, but I know I would need it if, God forbid, my nightmares came true.
4. What is the biggest life insurance mistake people make?
Buying too little. People underestimate the cost of a funeral, estate costs, what their income or pensions are worth, and even the tax burden they are leaving. Proper insurance planning takes a short-term and long-term view of your life, and most people wait too long to even think about it. It’s frustrating to see people who need life insurance procrastinate.
5. Outside of life insurance, what other types of individual insurance are often overlooked?
Disability Insurance, Critical Illness insurance, and Long-term Care Insurance are always overlooked. I own all three products, and like everyone else, I hope I never use them. Each one has a specific purpose and each one protects a need. My family is my highest priority and I’m proving it to them by sacrificing a small portion of my income to protect our lifestyle against any curveballs that come our way.
Paul Lalonde is an experienced and knowledgeable financial planner who has been successfully helping clients since 2002.
He is bilingual, fluent in both French and English. Paul has continuously qualified as a member of the prestigious Million Dollar Round Table. His extensive financial knowledge means he’s called upon for multiple speaking engagements on financial planning — teaching people how to maximize their wealth and protect their assets while minimizing risk and taxes.”
