Category Archives: Canadian Life Insurance
Taxation of Life Insurance
How is Life Insurance Taxed?
Life insurance can be divided into two types: term and permanent. Term insurance has no investment component and pays out a tax-free death benefit. Generally universal life or whole-life is designed to last throughout your life time. It often has an investment component allowing you to build up cash values inside the policy in a tax-sheltered manner.
The laws regarding the taxation of life insurance in Canada are anything but straight forward and can be a complex topic; the best possible advice will come from a tax professional that can assess your own individual circumstances. The subject of taxes and life insurance are basically broken down into two main areas; the payments that are made at death,
Return of Premium Life Insurance
Return of Premium Life Insurance
So you’ve decided that you want the protection that only life insurance can provide for you, now what? What most Canadians will do will conduct online research. Next, deciding which particular type of insurance will best cover their needs. The choices that you have boil down to three basic types: term life insurance, whole life insurance and return of premium (ROP) life insurance. If you’ve made it this far, chances are you’re more than familiar with both term and whole life insurance but a little unsure as to what exactly ROP insurance is and the advantages it offers.
Return of premium life insurance is essentially a hybrid of term and whole life.
Life Insurance Brokers in Canada
Life Insurance Brokers in Canada
An Life Insurance brokers in Canada is a professional who specializes in selling life insurance from various insurance companies. The main difference between a broker and an agent is that the agent sells insurance from a single company. Meanwhile, a broker represents multiple companies giving them more options to find you the most suitable coverage.
Licensing in Canada
In Canada each province is responsible for the licensing requirements for Life Insurance brokers in Canada. The life insurance industry is active and ever changing, and can be complicated; a professional broker is a necessary resource when you are shopping for life insurance. Brokers are tasked with keeping knowledgeable about the latest policy offerings and industry trends.
