January 2016 - Dehoney Financial Group Ltd.

The Advisor’s Guide to the New Life Insurance Tax Changes

Maximize your client’s tax benefits before the January 1, 2017 life insurance tax changes.

It has been a long time since there have been major  life insurance tax changes in Canada. That’s all about to change with the introduction of new exempt test rules for life insurance policies. The new legislation reflects current mortality rates, new insurance product design, and heightened requirements for standardization across insurers and products. The new rules replace the current and more favourable rules which remain in place until the end of 2016. Below are the details of the most significant new […]

Establish Permanent Life Insurance at Reduced Minimum Premiums

Changes to cash reserve tax rules will increase permanent life insurance premiums.

There are multiple changes to the income tax legislation resulting in an increase in Term 100 or Level Cost of Insurance Policy (LCOI) premiums. This change impacts those who want permanent life insurance at a minimum lifetime premium. While the legislation changes are complicated, we have broken down the changes for you.

New rules limit investment inside Term 100 policies

To understand the changes, it is important to first understand the product design. Mortality has an increasing curve-the older we get the more […]