A Registered Retirement Savings Plan (RRSP) is a useful financial tool to help Canadians save for their future. Many Canadians will open an account through their bank, a credit union, trust, insurance company, or may contribute to an RRSP through their employer and their chosen financial institution. Yet, there is still a lot of confusion around RRSPs and how they work. Some may even confuse their RRSP with a TFSA. Without a proper understanding of the financial products, account holders may lose out on the benefits they offer.
To clear things up, we’ve listed answers to fundamental RRSP questions so you can get the most out of your investment.
When can you start contributing to an RRSP?
Is there more than one type of RRSP?
What is an RRSP deduction limit?
What is the RRSP contribution room for 2020?
What if you over contribute to your RRSP?
Can you transfer your RRSP?
How do you make an RRSP withdrawal?
When Can You Start Contributing to an RRSP?
Canadians can start contributing to an RRSP as soon as they generate some contribution room…
In keeping with this spirit, here are some insightful tips on how to save money when buying a Canadian life insurance plan.
Tip #1: Consider Annual Premiums vs Monthly Premiums
When buying a life insurance policy there are two payment options available: annual and monthly premiums.
Annual premiums are paid once a year. This payment option does not appeal to everyone and depends on the financial situation of the applicant. However, paying an annual premium can save you a substantial amount of money, and in fact can save you almost one month’s premium. Of course, the lower the premiums the less money will be saved using an annual payment method.
Tip #2: Get a Term Life Plan with the Right Term Length
The most popular type of life insurance is term life since it is much cheaper than permanent life insurance plans such as whole life or universal life…