Wednesday, 31 August 2011

Tax Free Savings Accounts and RRSP Investing are Two Ways to Save on Income Taxes in Ontario

Ontario is one of the most heavily taxed provinces in Canada and Ontarians are always looking for ways to save money and income taxes.

Some are steering away from the stock market and other higher risk investments, largely due to the turbulence in the economy over the past few years. Nowadays, people are turning towards safer investment products.

When you think about investing, the first place you may think to turn to is your bank. You may also consider consulting an Investment Advisor. The issue is that a bank can only expose you to their products and an Investment Advisor may recommend a product that is higher risk than you have an appetite for.

Believe it or not, Life Insurance Agents do not just arrange life insurance. Some insurance brokerages offer financial products. Outside of the available insurance products that carry financial incentives, many insurance companies offer RRSPs and tax free savings accounts.

An RRSP can be arranged as low, medium and high risk. A low risk RRSP will offer a good return with the lowest risk. Those who have a low appetite for risk are suitable for a low risk RRSP. If you already have RRSPs but prefer the features & benefits of an insurance company RRSP such as maturity and death benefit guarantees of up to 100%, creditor protection and bypassing probate, you can transfer it (if you don’t owe a loan against it), without paying a penalty.

When you purchase RRSPs, you can deduct your RRSP contributions from your income at the end of each year, thus reducing the income taxes you will have to pay. Even a $5,000 annual RRSP contribution can make a major difference when tax time comes.

Tax free savings accounts in Ontario are also offered by Ontario insurance companies and can be arranged through an Ontario Life Insurance Agent. A tax free savings account enables you to save up to $5,000 each year, tax free! Families use the tax free savings account to plan and save for expenses such as their children’s education, a down payment on a house and more.

There are different types of Life Insurance Agents in Ontario. Some work for a single insurance company and others work with all insurance companies. If you want to learn about how you can obtain financial investment products through an Ontario Insurance Agent, you will get the most benefit from dealing with an Ontario Life Insurance Agent who deals with all of the major insurance companies. That way you can find out about all that is available to you without having to call a litany of insurance companies yourself. To find out more about tax free savings accounts and RRSP investing with Ontario insurance companies to save on income taxes in Ontario please visit or call 416-849-1653.

Wednesday, 24 August 2011

Insurance Premium Return is Available for Ontario Life Insurance products

Insurance premium return is when you obtain an insurance policy that contains a provision that states, after a specified period of time, you can receive your insurance premiums back.

Term insurance products offer low premiums, therefore they often don’t provide the ability for you to be eligible to receive your insurance premiums back, even in the event that you don’t make an insurance claim.

Insurance premium return policies are available on critical illness and disability insurance policies. They offer up to 100% of your premiums back after a certain amount of years if you don’t make a claim.

Outside of the very obvious benefits presented with insurance premium return policies, these insurances provide crucial benefits to protect your income and your livelihood in the event you suffer a critical illness or disability. They also ensure that your family is cared for in the event of death.

Did you know that in 2001 there were over two million Canadians of working age who were disabled where physical injury wasn’t the only cause? Amongst office workers, absences due to nervous disorders, including stress triggered conditions, have become the leading cause of disability in Canada today.

At any time something could happen that could disable your ability to work. Many policies offered by employers are just not enough. Over time they may reduce the percentage of your income that they will pay to you while disabled and may even require that you are assessed by their doctor, in an effort to get you back to work.

If you are in a job that is high stress, it is important to remember that many critical illnesses, such as heart attacks, can be brought on by stress and can often occur in seemingly healthy individuals when they have a high stress occupation. The scary thing about critical illness is that a critical illness is called “critical” because if it occurs it will, in many cases, render the individual incapacitated for an extended period of time. Some examples of critical illness in addition to heart attacks include cancer, stroke, kidney failure and more. Other critical illnesses such as Alzheimer’s disease cause a slow deterioration to the individual over long periods of time, at which point care is expensive.

The primary reason you should consider insurance is to protect your income, livelihood and family. Many folks make the mistake of calling an insurance company directly and consequently purchasing the most affordable product available, when often there are other products that carry perks such as insurance premium return.

The best thing to do is consult a good Life Insurance Broker, one who deals with all of the top rated insurers (not just one), finding you a policy that provides the maximum benefits at the lowest available premium. For more information about insurance premium return insurance in Ontario please or call 416-849-1653.

Wednesday, 17 August 2011

Life Insurance “Premiums That Do Not Increase” are Available for Other Ontario Insurance Products Too

Insurance companies determine the cost of your premiums based on the risk that you represent to them.

That’s why, generally, life insurance, disability insurance, critical illness insurance and most other personal insurance products will increase the premium they offer you depending on:

- Your age
- Health
- Habits (Smoking etc.)
- Medical History
- Family History, etc.

Another measure that will factor into how your insurance premium is calculated is the term. With life insurance, disability insurance and critical illness in Ontario you can purchase a 10 year term policy, 20 year term policy or a policy that lasts for life. This is referred to as your insurance policy term.

During your insurance policy term, your insurance company cannot revoke your insurance or increase your insurance premium. Even in the event that you have a health problem, move to another country, change income sources, start a bad habit – as long as you make your insurance payments, your insurance company must honour your insurance policy terms throughout the insurance term.

Anytime you are looking at any insurance product whether it is a 10 year term insurance policy, 20 year term insurance policy or a policy that lasts for life, the shortest term policy is almost always the cheapest insurance option. For example, if you were looking for a term life insurance policy, a 10 year term life insurance policy would be the cheapest option.

As mentioned you can obtain life insurance, disability insurance and critical illness insurance that guarantees the insurance premium will never increase for the life of the contract. These policies are often more expensive than the term insurance option but can carry perks that make the additional cost worthwhile.

Critical illness insurance is a great example of an insurance product where you can get an insurance premium that will be guaranteed for life, and carries an extra bonus. After 15 years, if you don’t make an insurance claim you can receive 100% of your insurance premiums paid back to you. At that time, if you don’t want to cash out, you can continue making your monthly payments at your guaranteed premium and rate of payment. As you get older and become at higher risk of having a critical illness, you will enjoy a low critical illness insurance payment and will have excellent critical illness protection. You can choose to cash out all your premiums at any time after 15 years.

Whole life insurance also guarantees your insurance premiums for life and carries major income tax incentives.

A qualified Life Insurance Agent will be able to assess your personal circumstances and recommend the right product for you, ensuring the lowest rates. For more information about insurance “premiums that do not increase” and for all Ontario insurance products please visit or call 416-849-1653.

Wednesday, 10 August 2011

Disability Insurance in Ontario is Not Available to Individuals Once They Have Become Unemployed

Disability Insurance in Ontario provides you with income if you suffer a disability that hinders your ability to work. If you suffered a disability and couldn’t work, the disability payment you would receive (no matter who the insurance provider is) is based on a percentage of your income.

Most people feel secure when they obtain a job that offers disability insurance as part of their benefits package. The problem is that only relying on your employer’s disability insurance provides short term gain (low disability insurance premiums, deducted at the source) with long term consequences.

If you become unemployed you will no longer be insured. Here are the two main reasons why Disability Insurance in Ontario is something that the primary income earner in any household should have:

Once you do not have an income, you will not qualify for Disability Insurance in Ontario.
The cost of disability insurance premiums in Ontario increase as you age. Additionally, if you become unemployed, obtain new employment and then realize that you need additional disability insurance, your premiums will be much higher than they would have been if you had started contributing to a disability policy at a younger age.

Most insurance providers offer a number of different disability insurance products that provide different benefits. There is term disability insurance that offers the lowest disability insurance premiums.

There are other disability insurance policies that return part of your premiums if you don’t make a claim, and policies that will guarantee your premium for the life of your contract. A good Life Insurance Broker will be able to compare the different disability insurance products and provide you with information about the costs and benefits.

One you have selected a disability insurance product that suits your needs, the insurance company will present you with an insurance policy. Your disability insurance policy is a contract. Once the insurance company signs off on your disability insurance contract, it is binding for the insurance company. They can’t make any changes to your contract, but you have the right to.

If you were to suddenly find yourself unemployed and while unemployed suffered a disability, your disability insurance policy would provide you the amount of coverage and income agreed upon at the time you signed the contract.

Also, if you obtain a disability insurance policy that guarantees your premiums for the life of your contract, when you are older, you will enjoy very low insurance premiums and maximum income protection. For more information about disability insurance in Ontario please visit or call 416-849-1653.