“FINANCIAL DOCTOR” JASON HEATH (CFP) INTERVIEWS “INSURANCE DOCTOR” PROMOD SHARMA (ACTUARY)

Jason Heath, a fee-only financial planner at Objective Financial Partners, interviewed me on the Objective Financial Hour (which does not run a full 60 minutes).

You may know Jason from his articles in the Financial Post (list). A recent column spurred the post, what does your advisor drive? (podcast 190).

Jason Heath

Jason is an Certified Financial Planner (CFP) who has spent more than 10 years preparing fee-only plans. He doesn’t sell any products, which brings objectivity to his recommendations. That's rare.

You can easily find financial planners who prepare plans for "free" because they get paid from the sale of products. The question is whether the best advice for you is free or for-fee.

What’s Discussed

You’ll find out about a range of topics related to insurance, investments and financial planning. The program has three segments.

Segment 1

General

1. what does an actuary do? (see me an actuary?)
2. fee-only financial planning (see why financial planning is ignored,  how to spot a fake fee-only planner and Preston Manning on financial planning)

Insurance Reviews

1. the uniqueness of fee-only insurance reviews
2. the reasons for getting a review
3. the three-step process (see Taxevity)
4. the types of changes that can be made after you’ve bought a policy
5. how an insurance pharmacy differs from a medical pharmacy

Trust

1. the biggest issue (includes slides)
2. sources of information and advice
3. ratings of honesty and ethics
4. more: who can you trust and what you like/dislike about your trusted financial advisor

Segment 2 (starts at 0:17)

Insurance

1. the core of insurance
2. the importance of the mortality curve (see insights from Pink Floyd)
3. why life insurance offers tax advantages (see secret 7)
4. the drawbacks of investing inside life insurance (see the two drawbacks)
5. the flaw in “buy term and invest the difference” arguments (see what would Warren Buffett do?)
6. selling the sizzle instead of addressing a need
7. the RRSP preserver
8. using life insurance to pay tax liabilities

Segment 3 (starts at 0:33)

Life insurance

• life insurance as an investment
• life insurance for estate planning
• who benefits from buying life insurance for estate purposes
• more: the top five insured strategies,

Income replacement insurance

• if you think or hope you won’t get sick, why buy coverage?
• a component of retirement planning
• how good are the definitions of disability? (get “own occ”)
• more: a guide to disability insurance and losing your livelihood: insuring against the risk

Critical illness insurance

• what is it?
• how can the benefits be used?
• more: the basics of critical illness insurance

Long-term care insurance

• when are benefits payable?
• when’s the best time to buy?
• the misguided view of public health care
• see long term care takes planning (Financial Post, Oct 2012),  do you care about long term care? and the staggering cost of dementia

The fiduciary question

• is an insurance advisor a fiduciary?
• most advisors are well-intentioned but problems occur
• see the word advisors imply but dare not say, the new prescription for trust, where does your advisor get advice and The Globe and Mail on the insurance loophole 

The Interview

For the first time, I’m using several slides during an on-camera interview. That spares you from watching Jason and me for the full show. Now grab your popcorn and beverage. Here’s the interview.

That’s all.

Links

• Jason Heath: LinkedIn, Financial Post, Objective Financial Partners
• Exploring the inner worlds of investments and insurance
• Why insurance advisors also sell investments
• The six basic fears identified by Napoleon Hill
• The six financial fears of Canadians
• How to leverage your philanthropic gifts
• Three reasons the rich get richer
• The four financial risks

Podcast 193

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PS What other questions would you like answered?