New rules for Canadian life insurance
Federal legislation kicked in on January 1 to change various tax rules with respect to life insurance. The legislation affects policies issued after December 31, 2016.
Though existing insurance policies are not affected, still you should check with your agent.
If you do not have an agent or if you have life insurance through employment, it would probably be useful to check with the appropriate department whether the new rules have any effect on your insurance plan at all.
The rules are too detailed for a description here, but the significance of insurance in any estate plan is such that it should be checked.
Anyone expecting a major payout of funds on a person’s death, which are to be used to pay various taxes, should make sure the new legislation does not affect this.
This ad ran in the Richmond News on January 6, 2017.