Insurance policy getting you down? There are always sound insurance alternatives.
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How to calculate the taxable amount for a cashed-in whole life insurance policy + MORE Apr 18th
Ask MoneySense
I cashed in my whole life insurance policy last year and received a T5 suggesting I have to pay tax on the full amount of my cash value. Is this correct? The cash surrender value was $27,000, I paid $28,000 in premiums, and they told me my pure cost of net insurance was $30,000, whate.... More »
So you fell short of your financial goals in 2025—here’s how to do better Dec 27th
Did you fall behind on your financial goals for 2025? If so, you’re not alone. According to a survey by online estate planning platform Willful, 58% of Canadians reported postponing financial tasks they’d earmarked for the year, such as paying down debt, contributing to registered savings and in.... More »
What you need to know to decide if trip cancellation insurance is worth the cost Jun 21st
Insurance policy getting you down? There are always sound insurance alternatives.
What you need to know to decide if trip cancellation insurance is worth the cost - thestar.comContinue Reading On thestar.com »Why not follow our RSS feed to keep in sync with the latest Canadian Insurance.... More »
Choosing a Group Benefits Advisor Mar 28th
How Getting a Group Benefits Plan Works
A company that is looking for a benefits plan engages an advisor (e.g. a broker or agent) who then submits that company’s details to several insurance companies for a quote. (An experienced advisor will know which insurance companies are best suited for.... More »
Your ID was stolen, here’s what to expect + MORE Jan 7th
Your identity was stolen—what does that mean, and how might it impact you in the future? It’s a frustrating situation to be in, and you may have concerns about protecting your credit rating and preventing scammers from using your identity to commit fraud.
Unfortunately, identity theft is on t.... More »
Should I invest my money or buy a life insurance policy instead?
– moneysense.ca
Q: My wife and I are both 40 and have two kids—ages 5 and 7. We are considering buying a joint last-to-die life insurance policy that would cost a fixed $7,105 per year for ten years. That’s a total of $71,050 and the policy would pay $500,000 when the last of us dies. This is a proposition from our advisor after we have made our retirement plan. We have concluded that we have enough savings to retire at 55 with a very comfortable nest egg made up of TFSAs, RRSPs, and defined benefit pension plans, as well as money in non-registered investments.
We do not have any debts except a remaining mortgage of $95,734. We also have life insurance and disability insurance with our employer that would cover our needs if one of us were to die or could not work anymore. The goal of this joint last-to-die policy would be to transfer money tax- free in the future as all other needs are covered either by our savings or our employee benefits.
I am wondering if buying this policy is really a good move and if the cost of this product is reasonable? We can afford the cost without changing our lifestyle but our advisor is not independent so the policy would be sold by its institution and that’s what makes me wary…
We do not have any debts except a remaining mortgage of $95,734. We also have life insurance and disability insurance with our employer that would cover our needs if one of us were to die or could not work anymore. The goal of this joint last-to-die policy would be to transfer money tax- free in the future as all other needs are covered either by our savings or our employee benefits.
I am wondering if buying this policy is really a good move and if the cost of this product is reasonable? We can afford the cost without changing our lifestyle but our advisor is not independent so the policy would be sold by its institution and that’s what makes me wary…
Why GICs deserve a place in any fixed income portfolio
– moneysense.ca
Q. My wife and I are retired, in our late 60s. With interest rates expected to continue rising for the next year or two, and bond funds making almost no gains or even losing value in recent years, I have been considering converting the fixed income portion of our portfolio to GICs. Would this be a good strategy? — Frank
A. GICs get little respect, and that’s a shame because these humble investments can play a useful role in a balanced portfolio. Frank, your strategy for substituting GICs for bond funds is an excellent one, albeit with a few caveats.
First, we’ll consider the benefits. GICs offer significantly higher yields than government bonds of the same maturity. At the time of writing, five-year Government of Canada bonds were yielding about 1.9%, while you didn’t have to look far to find five-year GICs paying as much as 3.6%.
Normally more yield means more risk, but because most GICs are backed for up to $100,000 by the Canadian Deposit Insurance Corporation (CDIC), a Crown corporation, they don’t carry any more risk than a federal bond…
