What The Financial Experts Own – Cory Budovitch
President, Budovitch Legacy Planning Inc.
For over twenty years, Cory has helped entrepreneurs and professionals in almost every sector extract funds from their businesses while reducing payable taxes. His hands-on approach and creativity allow him to help clients meet both their short-term financial goals and long-term estate planning objectives.
Cory uses his specialized expertise to help create innovative solutions designed to meet his clients’ changing needs.
He is a Million Dollar Roundtable Top of The Table qualifier, an international association of less than 1% of life insurance and financial services professionals who demonstrate exceptional knowledge, strict ethical conduct and remarkable client service.
Beyond his professional accomplishment, Cory is an active philanthropist. He is a supporter of breast cancer research and regularly runs golf tournaments to help raise funds for charitable organizations such as Toronto’s Hospital for Sick Children.
1. What Type of Life Insurance do you own?
Corporate Owned participating Whole life insurance. Term Insurance which allows me to continuously convert into Corporate Owned Whole Life Insurance without a medical, as my Corporation(s) earnings continue to grow. I also believe in owning some term insurance personally as well. This should be inexpensive as you're paying with personal dollars; should also be for a temporary need (i.e., to get Kids through school, or a loan, mortgage, etc).
2. What factors did you consider when determining the coverage amount?
The stability of the tax free Investment - 170+ track record positive investment returns- with one of the largest insurers, the liquidity and flexibility it provides, I like owning assets and for me it's another investment vehicle, an extremely tax efficient one. This strategy also allows me the ability to have another tax efficient income stream later in life and create a CDA (tax credit) for my kids to allow other assets to pass on tax free.
I used a few factors in determining the amount. I took my current human value (i.e., what am I worth alive to my wife and children, my income over the rest of my life, my net worth, and tax liabilities). I also considered, what kind of Legacy do I want to leave? I always get the maximum amount of Insurance I can, fortunately my net worth and earnings continue to grow. We will all die one day, so what do I want to be remembered for? How could I give back so my Legacy lives on, long after I'm gone- what would make my children, and their children's children proud?
3. Do you believe in Life Insurance for Children?
Yes, very much so, they to will have families one day, and want to leave the legacy I started - I have the ability to impact many generations and it's also a great investment vehicle for them as well.
4. What is The Biggest Life Insurance mistake people make?
They do not account for tax and erosion of assets - everywhere- in there investments, in there assets at death, when calculations are done, rarely is tax a consideration, or time value of money. Basic economics like Opportunity cost is rarely considered. We often here financial advisors say "Buy Term and invest the difference". What they do not account for is, when your buying investments, there is tax on the growth of that investments most often, as well as fees, and MERS.
In addition Estate tax which then needs to be paid with cash - what if ones assets are tied up in Real Estate? Many people try to solve permanent problems with temporary solutions. Term Insurance certainly has its place, however It will always be a temporary solution. People also under-insure themselves trying to save money which costs them tenfold on the back end. Always insure the most the Insurance company will allow you to, even if it's in Term Insurance.
5. Outside of Life Insurance what other types of individual insurance are often over looked?
Buy Sell Insurance - I rarely see massive corporations owners, directors with sufficient or any funding for buy sell agreements, when in reality a death could literally bankrupt the company, especially if cash is tight or has already been deployed - reinvested etc.
Cory is a Million Dollar Round Table Top of The Table qualifier. He is a CALU and Advocis Member. Cory is one of Canada's largest producers working with a variety of high net worth clients. He is very involved in his community and several charitable organizations. Cory is often referred by top Tax Lawyers, Chartered Accountants and Financial Advisors who seek his expertise.