Term vs Permanent Life Insurance

by on February 6, 2021 with No Comments

Understanding Life Insurance – Sun Life Financial Feature

Their are two basic types of life insurance. Term can last for a set amount of time. Permanent can last for your entire life. But which one is right for you? Knowing their differences and benefits can help you find out.

 

                                                    Term                                                       Permanent

What is it for?
  • Temporary coverage from the financial impact of death
  • Lifelong coverage from the financial impact of death
  • Combining coverage with tax-preferred cash value growth
  • Estate planning

 
Who is it for, mainly?
  • Young families and homeowners with a mortgage
  • Business owners
  • Adults with a long-term perspective
  • People who already make full use of registered investment accounts such as RRSP’s and TFSA’s

 
What are the advantages?
  • It’s initially inexpensive, if you’re young
  • You can buy lots of coverage
  • It’s easy to understand
  • Lifetime coverage continues even if your health fails
  • The cost is guaranteed to never go up (with most types of permanent insurance)
  • Later in life, it’s less costly than term insurance
  • It provides tax-preferred cash value growth opportunities for people whose RRSPs and TFSAs are topped up
  • You can cash in or borrow against its accumulated value

 
What are the disadvantages?
  • Coverage is temporary; the protection ends when the term ends (if you don’t renew)
  • The cost goes up if you renew when the term ends (usually after 10, 15, 20 or 30 years)
  • It’s more expensive than term insurance

 
When is it most cost-effective?
  • When you’re young
  • When you need only temporary coverage (e.g., until your mortgage is paid off or children are no longer financially dependent)
  • Later in life
  • When you have built up cash value in the policy
  • When you have a sizable estate to pass along to heirs or charities
  • If you’re in a higher tax bracket

 
Can you convert it to the other type of insurance?  Yes  No
Can it supplement the insurance you have at work?  Yes  Yes
Trends to consider
  • Rising mortgage and consumer debt. You could still be in debt after temporary term life insurance stops being the cheaper option (or even becomes unavailable)
  • Adult children are financially dependent on parents longer than ever, perhaps even after your term policy expires
  • The trend toward increased longevity makes this an increasingly attractive option because coverage is lifelong, not temporary

 

Read the full article below on the sun life website:

Full Article - Sun Life

Alignvest Student Housing – Q3 2020 Management Report

by on October 29, 2020 with No Comments

SEPTEMBER 30, 2020 – MANAGEMENT REPORT

We are pleased to send you the September 30, 2020 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

September is the most important month for our REIT as it is the start of the school year. This year, in particular, with the onset of the “second wave” of the COVID-19 pandemic and uncertainty around university operations, we have been hyper-focused on occupancy and managing the health and safety of our tenants and employees. We are pleased that the majority of students showed up, are occupying their units, are excited to partake in the university experience, and are paying rent on time.

We are cautiously optimistic that our occupancy figures will continue to improve in the coming quarters with the recent announcement by the government to allow international students to enter Canada as of October 20, 2020.

Please let us know if you have any questions.

Click the link below for the September 2020 update.

Management Report

Alignvest Student Housing – Update

by on September 23, 2020 with No Comments
ASH Unitholders,

September 1st is a very important date for our student housing assets. Most of our leases run on a September – September term. We wanted to provide some real time information as to how September appears to be going. The following attachment gives some raw numbers of our current portfolio. We wanted to provide some additional information in order to help best understand theses numbers and what they mean:

 

  • Our overall portfolio is 85%+ leased for the year. This is well above our estimated breakeven occupancy of 65%.
  • There is ONE building in our portfolio that is managed by a University. This is the annex building in Ottawa. The Annex has been recognized as the best building in the Universities portfolio and is the most occupied building. Its current occupancy is 57%. This is expected to be the case for at least the first term. Generally this building is fully occupied with a long waiting list.
  • We continue to be operating in a positive cash flow environment and we have plenty of cash on our balance sheet to weather any storm or take advantage of an opportunity to acquire quality assets.
  • At this point in time, management sees no reason to cut the distributions to unitholders and therefor distributions will continue.

 

See the below update:

 

Flash Report

Alignvest Student Housing – June 30, 2020 – Management Report

by on August 18, 2020 with No Comments

We are pleased to send you the June 30, 2020 Management Report of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”).

Throughout Q2 2020, the uncertainty with respect to COVID-19 has subsided with universities announcing their plans for the Fall 2020 term and our properties continuing to perform strongly. Our revenue collection stands at approximately 95% and our pre-leasing is approaching 90%. With this stability in place, we have shifted our focus on acquisition opportunities.

We recently announced the acquisition of our first property in Western Canada, 1Ten on Whyte in Edmonton, which transforms us into a truly national player in the institutional-grade, purpose-built student accommodation space. We have also re-engaged on several additional attractive acquisition opportunities worth upwards of $500 million.

 

Below is the link to our Management Report.

 

June 30, 2020 - Management Report

 

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