Segregated Funds and What They Mean for your Client

The seg-fund space has evolved considerably in recent years and where all types of equity, fixed income and balanced mandates used to only exist as a mutual fund, they now have an analogue in the segregated fund realm as well. Using a segregated fund as an investment vehicle opens the door to a host of features for your client and offers them protection throughout their life and beyond. Most of these features are unique to insurance-based investment products and may not be available through traditional investments like a GIC or mutual fund. So what are some of these great features of a segregated fund? Continue reading “Segregated Funds and What They Mean for your Client”

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Your Segue into Segregated Funds

The COVID-19 Rating Guide: Get Ahead of the Curve

Since the first case of COVID-19 was reported in Canada in the spring of this year, we have definitely learned a few things about this virus. We know now that the coronavirus, known as COVID-19, is highly infectious and that although most of its’ victims are elderly and/or medically vulnerable, too many fatalities have occurred across the age spectrum and among those with no obvious pre-existing risk factors to define who or where the virus will strike next. Something that makes all of us more than a little uneasy.

On the positive side, we now understand how to better curb infection by hand washing, social distancing and wearing a mask, and as Canadians, we can be proud of our collective efforts to flatten the curve of rising new cases and deaths, at least thus far. Having said that, now is the time to focus on the mortality and morbidity impact for the more than 110,000 COVID-19 survivors in Canada; today the question is how will these cases be treated when applying for life insurance, critical illness or disability coverage? Continue reading “The COVID-19 Rating Guide: Get Ahead of the Curve”

Can the CRA Seize Your Client’s Life Insurance Proceeds to Satisfy Tax Debt?

The Canada Revenue Agency (CRA) is granted certain powers under the Income Tax Act (known as the “Act”) to satisfy an individual’s tax debts out of property that he or she transferred to a non-arm’s length person, such as a spouse, child or sibling. Where these rules apply, the recipient of the property is jointly and severally liable with the deceased for the tax debts (to a maximum of the fair market value of the transferred property). Continue reading “Can the CRA Seize Your Client’s Life Insurance Proceeds to Satisfy Tax Debt?”

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Can the CRA Seize Life Insurance Proceeds to Satisfy Tax Debts?

Protecting Your Client’s Investments

As an Advisor, you spend a great deal of time helping your clients grow their investments. Your clients have a general retirement goal in mind and come to you to achieve these goals. When you meet with your client, they will certainly want to know how much capital they need for retirement and how much they need to save each month to meet that goal; but the menacing question remains – are those assets protected? For example, what would happen if your client in their 40s developed life-threatening cancer? Well, in a case like this they would most likely stop contributing to their plan and start to access some or all of the capital they have already saved. This will change your client’s retirement projections and they will now have to retire on less capital or push back their retirement date in order to make up the lost money. Not good since neither option is what the client planned when they first sat down with you, their expert Advisor.

So how do you prevent this from happening? Continue reading “Protecting Your Client’s Investments”

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Protecting Your Investments

Tailoring the Perfect Fit for Your Clients

As an Advisor, you know that recommending an insurance type and amount without needs-based planning is like a dentist performing a root canal without even looking inside their patient’s mouth – ouch!

We’ve discussed this type of planning in previous articles as a way to determine your client’s needs and risks in order to provide them with the right insurance – insurance that is tailored purposefully to fit their life. In this article, we would like to elaborate on the topic of needs-based planning by providing you with some assessment tips that will not only demonstrate your insurance expertise and reinforce your brand, but will continue to strengthen your client/advisor relationship. Let’s start by looking at the benefits of needs-based planning for you and your client. Continue reading “Tailoring the Perfect Fit for Your Clients”

The Genetic Non-Discrimination Act: A Supreme Thumbs-Up

Genetic testing has been an incredible success in helping patients determine both their current health status and future health risks. The results of a genetic test can help confirm or exclude a suspected genetic condition; they can also help determine the chance of developing or passing on a genetic disorder – certain types of cancers, Alzheimer’s and Parkinson’s disease to name just a few [1].

So, what is genetic discrimination, and what happens if your client would like to buy insurance but they have been genetically tested and are worried their results will work against them? Continue reading “The Genetic Non-Discrimination Act: A Supreme Thumbs-Up”

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The Genetic Non-Discrimination Act: A Supreme Thumbs-Up

The Need for Needs-Based Planning

Over the last decade, insurance solutions have evolved, not only in product development but also in the lens from which we view insurance. In its most basic form, insurance addresses your client’s financial risk and works to develop a secure and unhindered path forward.

However, before insurance can do its job, it is your job to sit down with your client and ask some important questions – a needs-based assessment will help you determine what your client would face in the event of illness, disability or even premature death. This assessment or “analysis” will also help to establish your client’s estate goals and allow you, as their trusted advisor, to find better solutions based on your client’s unique set of circumstances. Continue reading “The Need for Needs-Based Planning”

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Needs Based Planning: It’s All About You!

COVID-19 Phobia – The Impact of Fear

There is no doubt that the COVID-19 pandemic has elicited widespread anxiety and fear, and although both are a normal part of the human experience, these emotions have caused many of us, including your clients, to change behaviour and decision-making regarding health. In fact, many of your clients who were once quite vigilant about their own health may now be feeling anxious about visiting their doctor or a hospital if they are unwell. Continue reading “COVID-19 Phobia – The Impact of Fear”

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COVID-19 Phobia and the Impact of Fear

How a Spousal RRSP Can Benefit Your Client

A spousal* RRSP is exactly what it appears to be, quite simply a Registered Retirement Savings Plan (RRSP) for a spouse; a plan that can not only help your client and their spouse set aside funds for their retirement, but can save them some tax dollars in the process. The general idea of the spousal RRSP is that one person, typically the higher earner, contributes money to the plan on behalf of their spouse. The main benefit for your client is that a contribution can be made each year (subject to your client’s contribution limit) and their spouse will see a tax-free return until those assets are withdrawn. Continue reading “How a Spousal RRSP Can Benefit Your Client”

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The ABCs of Spousal RRSPs