Over the past couple of weeks, a lot has been written about Finance Minister Bill Morneau’s proposal to fix the perceived unfairness in the way that private-business owners, family businesses, and incorporated professionals pay tax. While the proposal was not a surprise, it was the scope of the changes that many found alarming. In the days after the proposal became public, doctors’ associations, farmers, and small and medium-sized businesses have let the Minister and his government know that these changes will have a significant and negative effect on practicing doctors, the economy, and on the future of […]
In a previous article on the changes to the taxation of life insurance, we speculated on what insurers might do to their products to keep them competitive in the 2017 tax environment. And while the changes were significant, we had every confidence in the actuaries that they would develop their products to provide value to clients.
We have now had a chance to look at the new 2017 products and, after running our analysis, we can say that the results are encouraging.
Our Analysis – Universal Life Insurance
Our experts chose a 2016 level-cost, universal life insurance product […]
Take advantage of current and favourable CRA rules to fund capital gains tax liabilities.
It has been a long time since major changes were made to life insurance legislation in Canada that negatively impact your ability to fund capital gains tax. 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 […]
Get your application in before October 1, 2016 insurer warns.
Last week, Industrial Alliance announced that any life insurance application submitted after October 1, 2016 would be based on their new 2017 product. This news is not unexpected. With the introduction of less favourable tax rules for certain life insurance products coming into effect January 1, 2017, people are looking to maximize their tax shelter room. Policies established before January 1, 2017 will be grandfathered. For more details on the changes read more here.
The new 2017 rules reduce the amount of investment capital that can be held […]