Most would agreethat insurance provides peace of mind. Whether it’s for the protection of your assets, the security of your family, or the first step in a strategic plan for your business, The Tax Management Centre has a complete range of insurance products to adapt to your every insurance need.
A segregated fund is an investment fund held within an insurance contract. The term “segregated” refers to the fact that the investment is kept separate from the general assets of the insurance company. A segregated fund is a mutual fund with the added layer of protection offered by a life insurance company.
Segregated funds can have up to a 100% death benefit guarantee and a 100% maturity guarantee on a 10-year maturity. You can also name a beneficiary on a segregated fund, thereby bypassing probate – this is an excellent strategy for non-registered investments.
A term life insurance policy provides a stated benefit upon the holder’s death, provided that the death occurs within a certain specified time period. Most term policies are for 10 or 20 year timeframes. However, the policy does not provide any returns beyond the stated benefit unless you renew at the guaranteed renewal premium, which can be considerably higher than the original premium. Term life policies are an excellent strategy for young families, provided the policy has guaranteed renewal premiums and the option to convert to Universal Life.
Universal Life (UL) insurance combines both insurance coverage and an opportunity to invest in a “tax-sheltered” investment environment. In Canada, UL insurance is the only vehicle outside RRSPs where you can accumulate money on a tax-sheltered basis. The difference, however, is that UL is paid out without tax after death, whereas RRSPs are fully taxable. Premiums are paid with “after tax” dollars, and are therefore not tax deductible. UL policies can be an excellent estate planning vehicle.
Critical illness insurance is medical insurance that pays a lump-sum benefit upon the diagnosis of a critical illness or condition. A critical illness insurance payout helps you avoid the financial strain of a major illness, and instead allows you to focus on your recovery.
Disability insurance is designed to provide money in place of earnings lost when a person is unable to work for a long period of time due to health problems. Disability insurance may be provided by the Canada Pension Plan, included in employer-provided insurance packages, or purchased individually.
Group Health and Dental
If you are not covered under a group insurance plan with your employer, we can arrange for you to have private health and dental insurance at affordable prices.