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
Preventing Fraud All Year Round: How to safeguard your identity and financial information from theft
By, Carla Hindman, Visa Canada
A generation ago, most families didn’t think about financial fraud. Today, it can come in many forms – over the phone, through the mail and increasingly, online. It’s an equal opportunity crime that affects consumers of all ages.
This March marked the 12th anniversary of Fraud Prevention Month (FPM) in Canada. FPM raises awareness about fraud, while helping Canadians learn how to recognize, reject and report it. To combat fraud, the Financial Consumer Agency of Canada launched the ‘No Surprises‘ campaign to help Canadians understand their financial rights and responsibilities. Read more