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Posts from the ‘Living Benefits’ Category


A New Way To Give

Using life insurance for charitable giving is not a new concept.

Specifically, through life insurance, you can make a larger gift than you might have thought possible while gaining significant tax advantages.

However, it is not unusual to overlook the fact that life coverage is not the only insurance vehicle you can use to donate to your favorite charity.

Have you considered critical illness insurance?

A Brief Overview

Similar to using a life insurance policy as a vehicle for charitable giving, with critical illness, the charity owns and is the beneficiary of the policy on you. You make a donation – for which you receive a tax credit – to the charity, which they use to pay the policy premium.

The added benefit of using a critical illness insurance vehicle is that there is a payout if you become ill. However, and while it is important to note that the policy will not pay a benefit should you pass away, the charity will still receive a payment in the form of a full refund of all premiums paid to that point in time.

Claiming Your Tax Savings

Once again, by making the charity the owner of an insurance policy you are still paying the premiums in the form of a regular donation, but you can claim these donations as an ongoing, annual tax credit.

One interesting point to note is that you can carry forward your income tax credits. In other words, you do not have to use your credits in the year in which you made the premium donation. While you are required to report these contributions on an annual basis to Revenue Canada, you do not need to claim them as credits for up to 5 years. As a result, you can use the credits when it is of the most benefit to you.

Choosing The Right Critical Illness Plan

Obviously, you want to choose the right critical illness plan to ensure that you and your charity realize the maximum return from your donation. This need for expert advice is where an experienced adviser will be most beneficial.

For example, people sometimes confuse critical illness with disability insurance. With the latter your ability to work triggers the payout, while with critical illness the insurance company pays a benefit based on a diagnosis of 24 conditions and survival of the individual for 30 days.

Having a firm understanding of how your charity receives a donation through any insurance vehicle will enable you to choose the right plan for your particular circumstances.

Don’t Forget Life Insurance

While this article has focused on using a critical illness insurance policy to make a charitable contribution to your charity of choice, let’s not forget about the benefits of using a life insurance policy to accomplish the same goal.

Like critical illness, you can realize significant tax benefits as a result of your generosity in the form of annual tax credits or use the full death benefit to reduce any taxes owing on your estate. The key is to seek the advice of an expert adviser to make sure that you structure the policy to deliver the greatest benefit to your charity and maximum tax savings for you personally.


If you have questions or require further information on how to use insurance to make a charitable donation, give me a call as I can provide you with direction from both an insurance and tax planning standpoint – Milan at 613-728-7030.


Boomer + Sandwich Generation + Club Sandwich + Boomerang = Financial Instability

The Sandwich Generation was a term coined by Dorothy Miller in 1981 to describe adult children who were “sandwiched” between their aging parents and their own maturing children.  There is even a term for those of us who are in our 50’s or 60’s with elderly parents, adult children and grandchildren – the Club Sandwich.   More recently, the Boomerang Generation (the estimated 29% of adults ranging in ages 25 to 34, who live with their parents), are adding to the financial pressures as Boomers head into retirement. It is estimated that by 2026, 1 in 5 Canadians will be older than 65. This means fewer adults to both fund and provide for elder care.  Today, it is likely that the average married couple will have more living parents than they do children.

What are the challenges? Read more »


What is Key Person Insurance?

Most business owners understand that assets vital to the success of the enterprise should be insured.  Premises are routinely covered for fire and/or theft; vehicles used to make deliveries, insured; machinery needed for manufacturing, also insured. Given that these tangible assets are instrumental in the success of the business, it makes good business sense that the business is protected in the event of a loss.   But what about key employees? Many business owners overlook the impact on their business should a key employee die unexpectedly.

If you own or manage a company whose continued success is dependent on key people (it might even be you), it would be prudent to insure all key personnel whose death or incapacity would negatively affect profitability.  Key persons are those who contribute to the continuing success and profitability of the enterprise.

What happens when an owner or key person dies or becomes disabled? Read more »


Juvenile Critical Illness with Return of Premium

Protection if you need it.  A refund if you don’t.

Critical Illness Insurance – Not Just for Adults

Most of us have experienced or known someone whose family has been greatly impacted by a parent being diagnosed with a life-threatening disease or condition.  But what about when it happens to children?  Sadly, all too often children are affected by childhood diseases such as:

  • Type 1 diabetes mellitus
  • Congenital heart disease
  • Cerebral palsy
  • Cystic fibrosis
  • Muscular dystrophy

Read more »