First, what is life insurance?
Life insurance is a policy you pay into in regular installments, and in the event of your death, your beneficiaries get a payout. The contents of your specific policy will vary based on your needs, but it can pay for end-of-life expenses such as a funeral, as well as settle debt obligations including a mortgage, an auto loan and credit card bills. Most importantly, a policy can make life easier for your family when you’re gone by helping them keep their home, covering their everyday living expenses and supporting their plans for the future, the cost of your children’s post-secondary education, for instance…
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Is life insurance taxable in Canada?
Most of the money received from a life insurance policy is not subject to income tax. The death benefit paid from a life insurance policy is a tax-free, lump-sum amount for the beneficiary that can be used to finance a number of things. This includes paying off debts, including a mortgage, so your family can remain in the same home and community…