Episode 367: AMA #8 + Insurance Needs Analysis with Louai Bibi
The Rational Reminder Podcast
Insights on Critical Illness Insurance and New Transparency Measures
This chapter explores the importance of critical illness insurance through a personal narrative about policy cancellation and a surprising cancer diagnosis. The speakers discuss the balance between comprehensive coverage and simpler, affordable options, while also addressing regulatory transparency in listener reviews.
What if early RRSP withdrawals aren’t always the tax-smart move they’re made out to be? In this special AMA edition of the Rational Reminder podcast, Ben and Cameron are joined by PWL Financial Planner Louai Bibi for a wide-ranging discussion on RRSP decumulation strategies, insurance planning, and the practical complexities that real clients face when theory meets reality. Ben walks through a listener’s case study and shares insights from colleague Melissa on why early RRSP withdrawals (a.k.a. “meltdown” strategies) are not always beneficial—especially when viewed through a present-value lens. Louai contributes in-the-trenches experience, highlighting how client goals (estate vs. living net worth) and asset allocation can significantly influence what makes sense. In the second half, Louai delivers a comprehensive walkthrough of how PWL approaches life, disability, and critical illness insurance planning—not as salespeople, but as fiduciaries. You’ll hear why the right coverage isn’t one-size-fits-all, how survivor models are used to project financial impacts, and why the smallest, cheapest policy can still make a life-changing difference.
Key Points From This Episode:
(0:00:04) Introduction and full-circle moment: Louai Bibi joins the show.
(0:01:48) Reflections on the first PWL employee summit and One Digital integration.
(0:06:30) Upcoming Rational Reminder meetups in Victoria and Vancouver.
(0:07:40) Steve’s question: Should he be melting down his growing RRSP?
(0:09:15) Ben outlines a detailed client case where early withdrawals had minimal benefit.
(0:12:10) Key takeaway: Present value of taxes matters more than total lifetime taxes.
(0:13:50) Melissa’s advice: Model your specific situation, not just follow YouTube tips.
(0:15:56) Louai adds: The impact on future investment growth and taxable account drag.
(0:17:28) Systematically reviewing RRSP strategies annually in November.
(0:21:12) Taxes and portfolio construction: Home country bias, withholding tax, and more.
(0:22:11) The importance of tax diversification—lessons from the capital gains inclusion saga.
(0:23:11) RESP withdrawals and CRA’s definition of “reasonable” expenses.
(0:25:41) Fiduciary standards in Canada: Why sweeping change is unlikely.
(0:26:29) Most influential ideas from 300+ episodes: Market beliefs, information overload, and Die With Zero.
(0:34:36) Time, meaning, and memories: A shift in life perspective through the podcast.
(0:38:47) Louai’s top 3 lessons: Unified philosophy, consumption smoothing, and homeownership myths.
(0:42:21) Deep dive: How PWL approaches life, disability, and critical illness insurance.
(0:45:00) Life insurance: Survivor modeling, planning trade-offs, and permanent vs. term.
(0:51:32) Disability insurance: Hidden risks in group coverage and income replacement importance.
(0:56:36) Critical illness insurance: A real story about an inexpensive policy that changed a life.
(1:00:07) Ben’s experience with testicular cancer and hindsight on CI coverage.
(1:01:45) Teaser: A new disclaimer for reading podcast reviews.
(1:02:08) After-show: MobLand, The Sopranos, and the nostalgia of Animal Kingdom.
Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — https://www.youtube.com/channel/
Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
Cameron Passmore — https://pwlcapital.com/our-team/
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/
Louai Bibi — https://pwlcapital.com/our-team/
Louai Bibi on LinkedIn - https://ca.linkedin.com/in/louaibibi
Louai Bibi on X - https://x.com/louaibibi
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)
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