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The Single Premium Insured Annuity

Available until January 1, 2017

A New Approach

 A new method of structuring an insured annuity has restored its favourable results.  The new approach involves combining the prescribed annuity with a Universal Life policy.

  • The UL policy is funded with a single deposit to provide lifetime coverage.
  • The remaining capital is then used to purchase the prescribed life annuity.
  • On the death of the insured/annuitant, the annuity income ceases
  • The Universal Life policy now returns the full amount of the capital to the intended beneficiaries.

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Ease Your Retirement Worries with Immediate Annuities

The majority of Canadians work hard to accumulate a retirement fund and many are averse to exposing savings to unnecessary market risk after they retire.

In today’s prolonged low interest rate environment, immediate annuities are often dismissed or overlooked as a viable vehicle for providing retirement income. Perhaps they shouldn’t be.

An annuity is an investment that provides a guaranteed income stream for a set period of time or for the lifetime of the annuitant. While annuities may not be for everyone, for those trying to find a way to guarantee income in retirement Immediate Annuities may be the answer.

3 Retirement Risks to Avoid Read more

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The Clock is Ticking!

Don’t Put Off Your Decision to Buy Life Insurance

2016 is an opportune year to buy life insurance.  New laws affecting the taxation of life insurance come into effect on January 1, 2017. After this date new policies will not perform as well as they do currently.

The good news is that the proceeds of life insurance policies paid at death still remain tax free.  What has been affected is the amount of cash value that may accrue in a policy and the tax-free distribution of death proceeds from a life insurance policy owned in a corporation.

How will this impact your existing and future policies?

Adjustment to the Maximum Tax Actuarial Reserve

Whole Life and Universal Life policies are valuable vehicles in which to accumulate cash value. The limit of how much can be invested is governed by the Maximum Tax Actuarial Reserve (MTAR).  If the cash value ever exceeds the MTAR limit, the policy is deemed to be “offside” and will be subject to accrual taxation. Read more

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Do You Need Individual Life Insurance?

Canadians may need to rethink their risk management

In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance.  Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract.

In another study of middle class Canadians, Manulife reported that 79% had no individual disability insurance and 87% had no individual critical illness coverage.

What both of these studies conclude is that most Canadians rely heavily on their group benefits for their family’s insurance protection.  Read more

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Family Business Planning Strategies

67% are at Risk of Succession Failure

If you are an owner in a family enterprise, the chances of your business transitioning successfully to the next generations is not very good.  This has not changed over the years. Statistics show a failure rate of:

  • 67% of businesses fail to succeed into the second generation
  • 90% fail by the third generation

With 80% to 90% of all enterprises in North America being family owned, it is important to address the reasons why transition is difficult. Read more

ARTICLES OF INTEREST

17
Jul
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Protect your valuables

By Neal Muschett

When it comes to protecting your home and ensuring you’ve got the right insurance coverage, there are a number of areas that are easily overlooked in high-value homes.

Unique Upgrades

Many high-end homes include unique upgrades—there is a big difference between marble tiles that you can find at the big-box retailers and custom-made marble tiles that are chosen for their colour and thickness from a quarry in Italy and flown overseas. The same goes for hardwood floors—if you have a rare or exotic hardwood that has to be imported, you will want to make sure that your insurance broker knows and includes that in your insurance policy. If you have a unique or expensive chandelier, you’ll want to let your broker know that as well, so that it is specifically included in your insurance policy.

Read more

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13
Jun
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What to do if you’ve (just) been fired

by Kira Vermond, Moneysense

Dismissed, downsized, dumped? There’s no easy way to hear you’re suddenly out of work. To soften the blow, we’ve pulled together six steps you can take right away to put more money in your pocket, and give yourself a better chance at finding a new job.

Don’t sign anything

At least not until you’ve taken your severance package home to read it properly. Check whether your ex-employer is offering salary continuance or a lump sum payment, and whether you’re still entitled to extended benefits or any kind of employment support. Although there’s no official deadline to complete this process, a week is typical. That’s usually enough time to get legal advice if you feel that’s necessary.

Keep it together

You’re probably feeling shocked or worried about the sudden change in your financial status. Who wouldn’t be? Yet the moment you hear the words, “Effective immediately,” you need to zip it and start listening. Not only will you be more likely to take in vital information, starting a shouting match does nothing but damage your professional reputation. Definitely a no-no heading into a job search.

Read more

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