INCOMPLETE … WORK IN PROGRESS … MAY CONTAIN ERRORS Mental Leveraging What's your best investment? Yourself. You can't over invest in being the best. As you increase your skills, you increase your…
Things to review for LLQP exam creditor protection while policyowner is living: if irrevocable beneficiary or preferred beneficiary upon death of the life insured (?): if the beneficiary is other…
Segregated funds have seven unique features maturity guarantee returns at least 75% of deposits less withdrawals 10 years after the date of deposit (policy year or policy month) death benefit…
The policyowner transfers all rights to another party (e.g., person, charity, corporation), which then becomes the policyowner. An absolute assignment of an insurance contract transfers the ownership….
Health insurance is available to all Canadians through provincial health plans. The services vary and have limits. Five types of individual accident sickness insurance help cover expenses which…
Income Tax Act (ITA) section 148(9) Adjusted Cost Base The Adjusted Cost Base is the cost of capital property (e.g., shares) for tax purposes less fees and less expenses for improvements includes:…
When a withdrawal is made from a segregated fund, the principal guarantee is adjusted using a linear reduction or proportion reduction (1) Linear Reduction Method ("dollar for dollar") The…
A life insurance death benefit gives the following advantages: Tax-free unless the policy is held in an RRSP: savings component is fully taxed solution: hold the policy outside an RRSP …
An agent is a person who negotiates, solicits and places a contract of insurance on behalf of the insurer (the principal) in exchange for compensation. The agent is usually required to deliver the…
You can give legal consent upon reaching the age of majority. The age varies by province and territory. By Age Age of Majority Jurisdication 18 Alberta, Manitoba, Ontario, Prince Edward Island,…
previously called the “Spouse’s Allowance” The tax-free Allowance is paid monthly to help with the difficult circumstances faced by many surviving spouses couples living on the pension of only…
Alternative Minimum Tax (AMT) prevents the reduction of your tax liability to zero calculate if you are using tax shelters or other tax-reducing schemes ensures that everyone with earned income pays…
Analyzing your financial risks has two stages: identifying the risks evaluating the risks Identify the Risks This is where your advisor may ask you to complete a questionnaire ("Know Your Client")…
The annuitant receives periodic payments from an annuity contract. There may be more than one annuitant. An annuitant must be an individual (not a trust, corporation, etc). The content is meant to be…
An annuity provides a series of payments to the annuitant in exchange for a lump sum. e.g., monthly, quarterly, annually payout is a combination of return of capital (tax-free) and interest (taxable)…
Annuitization is exchanging the value of your annuity for the issuer's guarantee to make periodic payments to you e.g., for a specific period or the rest of your life Annuitization Of A Segregated…
annuity due: investment at beginning of period (0,1,2,3,…,n-1) The content is meant to be accurate when written. Be sure to use your judgment and consider consulting your advisors for help with…
Annuities are taxed on an accrual basis: as income is earned even if not received (e.g., during the accumulation phase of a deferred annuity) Taxation depends on the type of annuity. accrued…
Those most likely to claim are most likely to buy insurance. So a person who has reasons to believe that death is likely will be very interested in buying insurance. The underwriting process helps…
The applicant applies for insurance and becomes the policyowner or insured once the policy is issued. The content is meant to be accurate when written. Be sure to use your judgment and consider…
