Within the last decade we have seen an explosion within the health and fitness technology industry. With innovative new products like wearable fitness devices, apps that track and monitor our fitness levels, and even running shoes that count our steps, we can now be far more interactive and involved with our overall health and fitness. As a result of this growth, many companies are now taking advantage of these devices to connect with their customers in ways that were not possible before.
There has been a lot in the news lately with regards to the legalization of marijuana in Canada, the effectiveness of medicinal marijuana, and the research being done around whether or not there are health consequences if you consume marijuana. It is no different in the insurance world. Marijuana has been a hot topic and many carriers are changing their outlook.
• Current and recent budget proposals and review strategies to minimize the impact of these changes • Real Estate trends • Outline of trends which may impact your retirement and the preparation of your wills • How the Trump Dynasty and Trudeaumania may impact the economy and investment
There are many reasons that someone might need life insurance – maybe it is to secure a loan, to cover your mortgage in the event you predecease your spouse, or to preserve your estate from the erosion caused by final taxes. Many of these insurance needs can be properly covered by term insurance, but there are some that will require permanent coverage since term policies become increasingly expensive over the years, and most terminate in your 80’s.
The 2016 proposed federal budget and introduction of changes relating to life policies issued January 1, 2017 and beyond are the focus of many articles, most of them hard to understand due to the technical jargon needed to explain these changes. The result has been a preponderance of rumors. What is all the noise about and what changes should you care about?
The proposed 2016 federal budget contains 3 provisions that affect the taxation of death benefits of existing and new life policies that are corporately owned, whether the corporation is an investment, professional or active business. They are complicated, but in reality, affect very few of these policies. The changes represent a desire by the federal government to clean up sections of the Income Tax Act (ITA) that resulted in preferred taxation i.e. they closed some loopholes. Unless your corporation owns a life policy that was previously transferred into the corporation at its fair market value (FMV) or the beneficiary of the policy is a different corporation, there is likely no change that you need to be concerned about, or better still, try to understand. If any of the two scenarios apply to you, call your insurance advisor to discuss.