A Glance at Insurance

10/29/2021

03/23/2020

How to choose my life insurance
As each individual has different needs, life insurance coverage has different products to satisfy those different needs.
1- Insureds would always designate their beneficiary/beneficiaries and determine who will get what in their policy. Thus, every individual won’t need a will to distribute the policy face amount. (Face amount is the amount of money that the beneficiaries will get from the insurance company if the insured passed away).
2- The beneficiaries receive the face amount as a tax-free lump sum. So, one’s beneficiaries will receive the lump sum which was mentioned in the policy without paying any tax regarding this amount.
3- Business owners can use some life insurance products to increase their savings through generous interest rates (annual interest rates go up to 5 or 6%) and may receive some tax benefits -in some cases- as well.
4- Life insurance products are available for everyone including those that have suffered from cancer/ Aids or even a criminal record history will still have life insurance products to fit their needs (only through some insurance companies)
You will find more details on my coming posts.

03/23/2020

TFSA
Tax-Free Saving Account
• The program began in 2009
• Eligibility:
- 18 and older
- Have a valid social insurance number
• Contributions
- Contributions to a TFSA are not deductible for income tax purposes.
- BUT any income earned in the account (for example, investment income and capital gains) is generally tax-free.
- Note: You will accumulate TFSA contribution room for each year even if you do not file an income tax and benefit return or open a TFSA.
- The total maximum contribution today for someone has never used his tax-free saving account is $69500.
- The annual TFSA dollar limit for the year 2020 is $6,000.

• Note: An individual will not accumulate TFSA contribution room for any year during which the individual is a non-resident of Canada throughout the entire year.
• For more information please contact us at 5877315000 or visit
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html

03/23/2020

How to get the maximum benefit from
RESP
Registered Education Savings Plans
Registered education savings plan (RESP)
Note
The Government of Canada will help you with special saving incentives to encourage you to save for your children education
Those intensive will be a certain amount of money matching your savings from different sources.
What are those intensives sources and how it works?
That’s what we will try to discuss here.
such as CESG (Canada Education Savings Grant) and CLB (Canada Learning Bond) that are only available if you have an RESP.
Intensives Sources
1- CESG
Canada Education Savings Grant
• Basic CESG: No matter what your family income is, ESDC pays an amount of 20% of annual contributions you make to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year), and a lifetime limit of $7,200.
• Otherwise, CESDC will also pay an additional amount of Canada Education Savings Grant for each qualifying beneficiary; based on the adjusted income and can change over time as the adjusted income changes.
2- CLB
Canada Learning Bond
Employment and Social Development Canada (ESDC) provides an additional incentive of up to $2,000 to help modest-income families start saving early for their child's education after high school (post-secondary education).
3- Some provinces like Quebec offer other intensives for RESP
You can add investment to your savings as well so it could grow up faster.
How to choose the right investment that what we will speak about another time.
Don’t hesitate to share if you feel that it could be a useful post for your friends.
For more info please contact us at 587-731-5000 or visit: Registered Education Savings Plans (RESPs) - Canada.ca

03/23/2020

Seg Fund VS Mutual Fund
To encourage you to save CRA (Canadian Revenue Agency) has approved some registered saving programs
Each program offers you some financial intensives, such as
RRSP Registered Retirement Saving Plan
RESP Registered Education Saving Plan
RDSP Registered Disability Saving Plan
When you save money however you save with a registered program or not it is preferable to invest the money that you are saving so, it grows quicker.
The most famous and common programs to invest your money are
Segregated fund and Mutual Fund
Mutual Fund
You give your money to a financial institution like Bank or any other financial institution and they invest your savings for you.
When we say investment, it means taking a risk so, it may result in profit and it may result in a loss as well.
You can choose between 3 types of risk tolerance which are
Aggressive Risk Tolerance
Moderate Risk Tolerance
Conservative Risk Tolerance

A mutual fund doesn’t guarantee to protect your capital (which you invested) in case of loss.
You have to follow up with an accountant to report your annual investment results.
Segregated fund
It is like the mutual fund BUT an insurance company guarantees to protect your capital or a percentage of your capital.
Advantages
You don’t have to think about annual tax reports for your investment
Seg fund dived the fund to financial units you purchase the units, in the beginning, let’s say each unit equals $10 after few years when you need to withdraw money from the savings you sell some (or all) of the units you have purchased.
If the investment operation results in profit the price of the units you have purchased will be higher ex: you purchased the unit for $10 and when you decided to sell it as the investment operation resulted in profit so you will sell each unit for $15 it means you will get 50% as a profit.
Vice versa if the investment operation resulted in loss -unlike the mutual fund- you will get the amount that the seg fund guarantees it to you
The disadvantage of the Seg. Fund
The main disadvantage of the seg fund is the fees. It is usually higher than the mutual fund as you pay the cost of insuring your invested capital (or 75% of your invested capital) from loss (usually the fees difference between the Seg fund and the mutual fund is about 1% but it could be more or less).