On February 16, 2016 British Columbia’s Ministry of Finance announced upcoming changes to BC Medical Services Plan (MSP) premiums. These changes take effect January 1, 2017. As the government’s backgrounder suggests, the upcoming changes are designed to benefit single parent and low-income families. All children will be exempt from MSP premiums and the new premium structure does away with Family of Three or More and Family of Two rates. The new premium rate structure – $78/month per Single Adult – is based upon the number of adults in a household. For more information on the upcoming changes and […]
Most members of a group retirement plan won’t be raising their hands.
Over the past decade and during 100’s of group retirement plan employee seminars, we have asked employees across industries and age groups if they are confident they will be able to retire comfortably. Time after time, in a room filled with people, only one or two people will raise their hands. Surprised?
With certainty, what we know about the standard enrollment and education process is that most employees are provided with plan rules and a full list of investment options, but given […]
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 […]
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 […]