Our lives are arguably the most valuable “possessions” we own and because we are quick to insure our cars and our homes, insuring our lives should be a no-brainer. This being said, it is not uncommon for instances to arise where your current life insurance policy is no longer needed.

The most common reaction to an unwanted policy is to surrender it in order to free yourself from the premium payments. While this seems practical, it is important to consider that even a policy without cash surrender value could have value of another kind, especially if your health has changed.

An alternative option for dealing with an unwanted policy is to donate it to a charity. With the assistance of an actuary who would determine the value of your policy, you are able to donate your insurance policy to a registered charity. Through this donation the charity becomes the owner and beneficiary of the policy and you, the donor, will receive a donation receipt for the value of the policy. If you continue to pay premiums on the policy you will also receive a donation receipt equal to the premiums paid.

This method of gifting allows you to use donation tax credits over your lifetime so that you can receive benefits while no longer owning the policy you have no use for. Speak to your life insurance advisor to determine if donating, not surrendering, will work for you.

An Alternative Investment for Capital Preservation & Estate Planning

Segregated Investment Funds are often misunderstood and underutilized by Financial Advisors and other Estate Planning professionals.
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In May 2017, the Canadian parliament passed the Genetic Non-Discrimination Act (GNA) – formerly known as Bill S-201. This Act, meant to prohibit and prevent discrimination, states that genetic test information can no longer be requested or used in rendering underwriting decisions. How this bill will impact underwriting and product pricing remains to be seen.
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How the 2019 Passive Investment Income Changes Affect Your Small Business. After a lot of public debate in the tax and small business community around the way in which passive investment income is taxed in Canadian controlled private corporations, the changes that were announced in the 2018 Federal Budget are now law. These changes will limit the amount of the small business deduction for many corporations. Click here to read the article.

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If you are interested in creating a legacy at your death by making a charitable donation, you may wish to investigate using life insurance for that purpose. There are different ways you can structure life insurance for use in philanthropy. The most common are:

Getting an Existing Life Insurance Policy
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Why a Doctor Invented Critical Illness Insurance

Critical Illness insurance was invented by Dr. Marius Barnard.   Marius assisted his brother Dr. Christiaan Barnard in performing the first successful heart transplant in 1967 in South Africa. Through his years of dealing with cardiac patients, Marius observed that those patients that were better able to deal with the financial stress of their illness recovered more often and at much faster rate than those for whom money was an issue.  He came to the conclusion that he, as a physician, could heal people, but only insurance companies could provide the necessary funds to create the environment that best promoted healing.  As a result, he worked with South African insurance companies to issue the first critical illness policy in 1983.
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If you have ever thought that life insurance was something you wouldn’t need after you reached a certain level of financial security, you might be interested in knowing why many wealthy individuals still carry large amounts of insurance. Consider the following:

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