Are Disability Insurance Premiums Tax-Deductible In Canada?
Disability insurance premiums—the monthly or yearly fees for your insurance policy—are intended to be affordable. After all, you buy it to protect your income in case an accident or sickness renders you unable to work.
But what if you can take that security further by finding more ways to save, like deducting those premiums from your income taxes? Wouldn’t that make disability insurance that much more attractive?
But not all premiums are deductible. In this post, we explore situations where you can get a tax deduction for the cost of disability insurance.
Are Disability Insurance Benefits Taxable in Canada?
Whether you have disability insurance coverage through your employer or your own policy, you’ll want to know if the benefits are taxable.
That’s because the last thing you want to do is worry about taxes while you’re on a long-term disability claim.
In this post, we explore the different types of disability insurance plans and the applicable tax situation for each.
Are Life Insurance Premiums Tax-Deductible In Canada?
Life insurance premiums—the monthly or yearly fees for your policy—are intended to be affordable. After all, you buy it to protect your loved ones’ financial future.
But what if you can take that security further by finding more ways to save, like deducting those premiums from your taxes? Wouldn’t that make life insurance that much more attractive?
But not all premiums are deductible. In this post, we explore situations where CRA will allow you to write off the cost of life insurance from your income tax.
Corporate Insured Retirement Program
On average, small business owners have 80% of their assets tied up inside their corporations.
The challenge for them is to do the following in a tax-efficient manner:
Invest the funds
Withdraw the funds to supplement their retirement
Transfer the assets to their heirs
This post explains how the corporate insured retirement program can help you achieve all the above.
Joint Last-To-Die Life Insurance: Pros and Cons (Updated in 2024)
You might have heard that life insurance can cover more than 1 life.
One of these types of policies, joint first-to-die, pays out on the first death of 2 or more people.
The other, the topic of this post, is joint last-to-die.
As you can probably guess by its name, the insurance company pays out the death benefit when the last person on the policy passes away.
In this post, we will explore the advantages and drawbacks of joint last-to-die life insurance and whether you should use it.
Insuring the different stages of life
As we travel through the journey of life, our financial needs and obligations undergo constant change. For example, your financial obligations increase once you are married, and continue to do so as your family grows in size. It should come as no surprise that insurance varies in importance at different stages of life. Proper planning at each stage of life is necessary to ensure that you and your dependents are protected. Without knowing the risks and a plan to minimize the risk, you are potentially exposing your family to a financial disaster. Here are which types of insurance you should be aware of at each stage of life.
Wealth Transfer Using Life Insurance
Are you looking for a way to transfer your wealth to your children in the most efficient way possible?
Did you know you can do this with the wealth transfer strategy using life insurance?
With this strategy, you:
Reduce the tax you have to pay
Avoid costly probate and other estate fees
Can build up significant cash value inside the policy tax-sheltered
And much more.
So if you’re want to know more about how this strategy can help protect your wealth, this post is for you.
Let’s get started.
Estate Planning Using Life Insurance
This is the complete guide to estate planning using life insurance.
In this post, you will learn:
-What estate planning is
-How much tax, probate fees, and other costs your estate has to pay
-How life insurance is a cost-effective way to cover these expenses, preserving your estate for your loved ones
So if you’ve ever wondered how life insurance fits into your estate plan, you’re in the right place.
Lifetime Gift Annuity: The Perfect Gift For A Grandchild
Your grandchildren deserve the best.
A lifetime gift annuity is a way to provide your grandchild with an income for life, even after you die. It’s a great way to give your grandchild financial security without having to worry about them later in life.
In this post, we explain what a lifetime gift annuity is and how it works.
Life Insurance Taxation: The Definitive Guide
Most people know that life insurance proceeds are paid out tax-free.
But how about the cash value inside a policy? Can you also take that out without paying tax?
And in what situations can you deduct your premium from your income?
This post answers these questions and more, all the while simplifying life insurance taxation to make it easy to understand.
