Life Insurance Top
Why should I buy Life Insurance?

Life Insurance can be used for a number of reasons. Below are couple of reasons…

  1. Income Replacement
  2. Paying off a mortgage or a line of credit
  3. Final Expenses
  4. Emergency Fund
  5. Money used to fund your child’s education
  6. Estate preservation and creation.

How much Life Insurance do I need?

We have an online calculator that makes this process easy right here: Life Insurance The formula breaks down as, Existing Assets, (including all the Iife Insurance that’s currently in-force) minus Current Liabilities and Income Replacement Needs, equals The Amount of Insurance Needed for Adequate Coverage.

Can I get Life Insurance without a medical exam?

Yes, there are an increasing number of Non-Medical Life Insurance providers in Canada. The two types of Non-Medical Life Insurance policies are, Simplified Issue coverage and Guaranteed Issue coverage.

Can I get Life Insurance if I’m sick?

Yes, Life Insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional Life Insurance plans that require medical tests and health questions. Otherwise, Non-Medical Life Insurance plans fall in the two categories mentioned above: Simplified Issue insurance or Guaranteed Issue coverage.

Is Mortgage Insurance through the bank a rip-off?

In most instances, individual Life Insurance offers a much better value than Mortgage Insurance through a lender. Individual Life Insurance policies provide level coverage, the plan is portable, if you decide to switch homes or move to another bank, and the insurance company allows you to choose your own beneficiary. There are also substantial discounts to non-smokers and people who have a healthy lifestyle.

Is Life Insurance tax-free?

Life Insurance death-benefits are tax-free. The premiums on Life Insurance policies are generally paid with after-tax dollars, rather than pre-tax dollars. However, with Permanent Life Insurance policies, there is cash value that grows (within the tax exempt limits of Canada) on a tax-sheltered basis. This money can then be used to offset future premiums. The net-effect premiums are then once again being paid with pre-tax dollars, rather than after tax dollars.

If a person has quit smoking for a year, does it make a difference in the annual premium?

Yes non-smoker rates are significantly less than smoker rates, Even if you have life insurance as a smoker rate and you quit smoking for a 1 year then still you may qualifies for non-smoker rate with the same company.

Can you borrow money on a term Life Insurance?

Most Term Life Insurance policies do not have a cash value. You can only borrow against the cash value of a policy only. You can’t borrow against death benefits. The one exception is most life insurance companies will allow the insured to borrow against a death benefit if the insured is diagnosed with a terminal illness i.e. less than 1

Why should I buy from Yes Financial Services?

Yes Financial Services is committed to providing innovative and reliable insurance solutions. We have working over 13 different insurance carriers that provide a whole host of term and permanent life insurance programs. We take a holistic approach when looking at your insurance needs and always try to exceed your expectations. We are also very active when you need us most – especially during the claims paying process – we walk the claimant through any necessary paperwork and follow up with the insurance company, making the process as seamless and as trouble free as possible.

Critical Illness Insurance Top
Do I need Critical Illness coverage?

There are several factors to consider when making the decision to purchase Critical Illness insurance:

  • Anyone can become critically ill – and survival is more likely than ever because of advancement in medical science
  • Not all medication and surgical procedures are covered by government health plans
  • There may be gaps in employer-sponsored group coverage
  • Most Canadians are not prepared for the impact a critical illness would have on their finances
  • There may be tax consequences associated with withdrawing funds from retirement savings to fund recovery

Who is eligible to apply for Critical Illness coverage?

If you are applying for Critical Illness Insurance you would be:

  • Between the ages of 0 and 65
  • Are a Canadian citizen or permanent resident/landed immigrant who has been in Canada for more than 12 months, and

Are any medical questions or exams required to apply?

Possibly, yes. Depending on your age, the plan you choose, and the coverage amount you are applying for, you may need to complete a medical exams, or any other requirements requested by Insurance company.

How does Critical Illness Insurance work?

Critical Illness Insurance pays a lump-sum benefit that you can use any way you wish when you are diagnosed with any covered Critical Illness, as defined in the policy, and satisfy the survival period, as defined in the policy it is usually 30 days.

Which Critical Illnesses and conditions are covered?

The plan you choose determines the Critical Illnesses and conditions that are covered. The Critical Illness Insurance Plan lump-sum benefit is payable if you are diagnosed with any of the following covered Critical Illnesses or conditions, as defined in the policy, and satisfy the survival period, as defined in the policy, you need to look into the policy because not all company covered all the following conditions and some company covered more the following conditions.

  1. Alzheimer disease
  2. Aortic surgery
  3. Aplastic Anaemia
  4. Bacterial Nebubgitis
  5. Benign brain tumour
  6. Blindness
  7. Cancer(4)
  8. Coma
  9. Coronary artery bypass surgery
  10. Deafness
  11. Heart attack
  12. Heart valve replacement
  13. Kidney failure
  14. Loss of independent existence (not included with all plans, but can be added as an optional benefit)
  15. Loss of limbs
  16. Loss of speech
  17. Major organ failure on waiting list
  18. Major organ transplant
  19. Motor neuron disease
  20. Multiple sclerosis
  21. Occupational HIV infection
  22. Paralysis
  23. Parkinson disease
  24. Severe burns
  25. Stroke

What is the survival period?

The survival period is the number of days you must survive, following the diagnosis of a covered Critical Illness, before a benefit is payable. The minimum survival period for most covered conditions is 30 days, although some covered conditions require a longer period before benefits are payable. Does time spent on life support count toward the survival period? No, as you are not considered to be alive (as defined in the policy) while receiving nutritional, respiratory and/or cardiovascular life support.

Does time spent on life support count toward the survival period?

No, as you are not considered to be alive (as defined in the policy) while receiving nutritional, respiratory and/or cardiovascular life support.

What happens if I die within the survival period?

For benefits to be payable, a Return of Premium on Death rider must be in the policy. If you have a Return of Premium on Death rider and you die due to critical illness either defined or not defined on the policy your beneficiary will receive premium back. If death is a result of any of the exclusions listed in the policy, no Return of Premium on Death benefit is payable.

Will my Critical Illness Insurance premiums ever increase?

This depends on the policy you purchase. Our Critical Illness Insurance policy offers the following premium and term choices:

  • Level premiums to age 75 : We will not change the plan benefits or premiums from those stated in the policy.
  • Level premiums to age 100 : We will not change the plan benefits or premiums from those stated in the policy.
  • 10-year term renewable to age 75: Premiums are regularly scheduled to change every 10 years.

Are the Insured funded need to be used for Illness?

You can use fund as you want, there is no restriction regarding how to use fund

Disability Insurance Top
Why should you consider a personal Disability Insurance plan?

Disability Insurance would replace your income in the event an accident or illness prevented you from working. It provides important coverage because it would enable you to maintain acceptable living standard.Personal Disability Insurance is personal choice and here are couple of reason why you should have personal Disability Insurance.

  • Worker’s Compensation only covers work related accidents.
  • Unemployment insurance only covers 15 weeks of benefits.
  • Canada Pension Plan (CPP): Are you comfortable relying on the government for a benefit that can change? And it is also based on how much you paid on CPP for last couple of years.
  • Group and association coverage can fill a valuable role in long-term disability protection. However, the benefit may be limited by the definition of disability and coverage amount.

Remember, a custom designed individual Disability Insurance plan will provide you with guaranteed coverage and guaranteed premiums.

What is the difference between short-term and long-term Disability?

With short-term Disability Insurance, benefits are generally paid for up to 24 months. Short-term Disability is usually defined as the inability to perform usual employment tasks because of an accident or illness. As for long-term Disability Insurance, it pays benefits up to the age of 65, or retirement age, or for a period set out in the contract. It is usually defined as the total inability to perform each and all remunerative employment functions. Before signing up for Disability Insurance, it is very important to understand the definition of Disability as well as any related restrictions and exclusions.

Doesn’t the Canadian government provide coverage for Disability?

While the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) do include Disability coverage, there are considerable limitations to the benefits provided by these plans.

I have a Disability policy at work. Why do I need another policy?

It depends on your employer-sponsored Disability plan, so examine it carefully and know what it covers. Typically, an employer-sponsored plan will end when your employment ends. One of the advantages of a personal Disability insurance policy that you can take it with you if you leave your job. Here are some things to look at for your employer-sponsored plan:

  • How much of your income will your employer-sponsored Disability plan replace?
  • Are you covered for illness as well as injury?
  • Are you only covered for accidents on the job, or are you protected 24/7?
  • How does your plan define a Disability?
  • Does your plan also covered long term Disability?
Once you know the answers to these questions, you may find that you need additional coverage.

How much Disability income protection insurance should I have?

Your Disability benefits should allow you and your family to continue to live comfortably, as though you were still able to work full-time. You can visit Disability Insurance need analysis form to see how much Disability Insurance you need it.

What is the elimination period?

The elimination period is the number of days between the onset of a Disability and the day you begin receiving benefits. Most of plans offer you a choice of elimination periods ranging from 0 day to 730 days. Usually peoples choose 30 days waiting period.

When Will I Get My First Disability Cheque?

Disability Income Insurance is designed to replace one’s income when they are no longer able to work due to a Disability. When an incident happens (Once you are unable to work due to sickness or accident) then you are ready for apply Disability benefits. Once an elimination period is finish and you are insurance company Disability criteria then you will receive your first disability cheque.

Can People With Health Problems Still Get Disability Insurance?

Just because you have current health problems or a history of health problems, does not mean you will be denied Disability Insurance coverage but you may be able to only obtain a policy with exclusions.

Health Insurance Top
What does my government plan cover?

All province and territory has a different health plan. However, the following are usually not covered by government Health Insurance plans:

  • Prescription drugs
  • Dental checkups and treatment
  • Hospital stays
  • Specialized care, including speech therapists or pathologists, physical therapists, chiropractors, and many more
  • Homecare and nursing
  • Medical supplies and equipment
  • Emergency medical health treatment for travellers
  • Personal emergency response
  • Hearing aids
  • Accidental death and dismemberment
  • Catastrophic coverage
  • And so on.

For more information please visit your province website

If we buy a health plan with options, does my spouse have to take the same options as the ones I choose, or can different ones be selected?

Under the guidelines of our health plans, all the members of a family under the plan must all have the same benefits, as this is how the plan is priced.

What happens when I move out of province?

When you move out of province, your plan will cover you for the remainder of that month plus two additional months at which time you should have valid provincial health coverage. Depending on which province you move to, additional premium or a refund may be necessary

Is my existing medicine cover under Health Insurance?

Most companies have options to covered pre-existing medicine. Please read your coverage before you buy.

  • 9 in 10 will develop Back Problems
  • 2 in 5 will develop back High Cholesterol
  • 1 in 13 will develop Diabetes
  • 1 in 13 will develop Cancer
  • 1 in 20 will develop Bronchitis
  • 1 in 30 will develop Osteoarthritis
  • 1 in 50 will develop Epilepsy
  • 1 in 100 will develop Alzheimer’s
  • 1 in 500 will develop Heart Disease
  • 1 in 1,000 will develop Multiple Sclerosis
  • 7 in 10,000 will develop AIDS
  • 1 in 10,000 will develop Parkinson’s
  • 7 in 100,000 will develop ALS

Source: Statistics Canada, 2003

Do I need medical travel insurance necessary when travelling within Canada?

Provencal health insurance plans do have limits on the reimbursement of the emergency medical expenses incurred while in another province. For example, air and ground ambulance costs, emergency dental treatment and prescription drugs might not be covered outside your province of residence. For maximum protection, you should purchase additional medical coverage even while travelling within Canada.

Travel Insurance Top
What are the minimum requirements for private Canadian health coverage to qualify for a Parent & Grandparent Super Visa?

Applicants for the new Super Visa program must provide proof that they have purchased Canadian healthcare insurance for a minimum of $100,000 in coverage and that it is valid for 365 days. In addition, the coverage must be continuous during the 365 days, allowing the applicant to return to their home country as many times as needed within the year.

Who can buy Super Visa Insurance?

Anyone who is a permanent resident or a citizen in Canada and wants to apply for Super Visa for their parents or grandparents can buy travel insurance for one year from a Canadian company

How can I pay for Super Visa Insurance?

The purchaser can pay by a credit card or a cheque to pay one lump sum payment of one year.

If the visa is denied, will I get full refund of the premium amount?

Yes, the insurance companies reimburse the full premium amount upon receipt of the visa denial document.

I am not sure when will my parents arrive in Canada. Can I change the effective date of policy at any time?

Yes, the plan is very flexible. We can change the effective dates of the policy if the policyholder or the purchaser gives the new effective date before the original effective date.

What is a pre-existing condition?

It is a medical condition, illness or Injury known to the client prior to travel. For the condition, the client may have received medical consultation, diagnosis and/or Medical Treatment by a Physician

What is deductible amount with Super Visa Insurance?

It is the first amount paid by the client in case of every claim. The insurance company pays rest of the claim amount. You can choose deductible from $0 to $5000.

Can the Super Visa Insurance policy be renewed?

Yes, the insurance can be renewed for another year, provided there is no claim on the policy. If there are claims, the insurance company will analyze the medical history on case-to-case basis and will quote the new premium price.

What would happen if the policyholder returns to the home country in less than one year?

The payee (who purchased the policy) will get a partial refund on pro-rated daily basis, provided there is no claim process started or there is no claim in the given time.

Hospital and medical bills outside of Canada can easily run into thousands of dollars. Would I need to pay up front if I had an accident while travelling?

As outlined in our insurance policies, it is essential that you contact company Assistance Centreprior to receiving medical treatment. The Assistance Centre has existing relationships with medical providers in many vacation destinations, as well as contacts all over the world, to ensure emergency situations are handled as smoothly as possible. Assistance Centre will communicate with your medical provider, arrange direct billing where possible and coordinate payment of the emergency service received.

Mortgage Insurance Top
What is Mortgage Loan Insurance?

Mortgage Loan Insurance is a protection against the loan you borrow from financial institution. It is also known as creditor Insurance and it is offered by lending company to protect their money in the event of borrower die. You can also bought Mortgage Loan Insurance from Insurance company.

I already have Life Insurance. Why do I need Mortgage Loan Insurance?

Mortgage Loan Insurance means your family won’t lose their home in the event of should you pass away.

I’m insured for disability at work. Why do I need Mortgage Disability coverage?

There are some important statistics to keep in mind when deciding whether to purchase Mortgage Disability coverage: Employment plans usually cover only 50%-70% of your salary Your work insurance plan may be interrupted if you change jobs It’s important to protect yourself against these realities so that you are able to maintain the same lifestyle should your take-home pay be reduced. What’s more, during your disability you may have additional unexpected costs such as medication or treatment related to your illness or injury. Combined with other financial obligations, these expenses may exceed your monthly cash flow.

Do I need to have a medical examination?

It is depends on your age and amount of Mortgage Loan Insurance and the company you are applying with Mortgage Loan Insurance with.

I do have Mortgage Insurance with Bank/Credit union, why I switch my Mortgage Loan Insurance from Bank/Credit union to Insurance Company?

Usually bank/credit union offer you Mortgage Loan Insurance and it is called creditor insurance, which mean bank/credit union are the beneficiary of the insurance. With the Insurance Company you bought Mortgage Loan Insurance and you decide who the beneficiary is. For more information about what are difference between credit insurance and personal Mortgage Loan Insurance please fill this request form and one of our associate will contact you as soon as possible.request form.

Non-Medical Insurance Top
What is Non-Medical Life Insurance?

Non-Medical Insurance mean, you will get the insurance coverage you need without a medical exam just by answering a few questions on the application. And, no medical means you could have insurance coverage in days instead of weeks or months.

Why do I apply for Non-Medical Life Insurance?

You can apply Life Insurance with any company with or without medical test. But if you declined any insurance company before due to medical condition or you are unconformable with medical test, then Non-Medical Insurance the test best option.

I have high blood pressure and diabetes 2; can I apply for Non-Medical Insurance?

Yes you can apply for Non-Medical Life Insurance. We just ask for few simple questions and then will process your Life Insurance application.

How much I can buy Life Insurance without medical?

It is depends on your age and how you provide answer on the application. Usually you can apply up-to $150000.

Investments Top
Is there an age limit for contributing to an RRSP?

Yes, there is an age limit. You can contribute to your RRSP until the end of the year in which you turn age 71 and to your spouse’s RRSP until the end of the year in which he/she turns age 71.

What is the final date I can contribute to an RRSP if I want to take advantage of a tax deduction for my 2013 tax return?

You have until March 1, 2014, to contribute to an RRSP for 2013. As a general rule, contributions made during the year are deductible from taxable income during the same or subsequent years, while contributions made within the first 60 days of the year may be deducted from taxable income of the preceding year, the current year or subsequent years.

How can I find out the maximum amount I can contribute to a 2013 RRSP?

To find out the maximum amount that you can contribute this year, check the Canada Revenue Agency (CRA) tax assessment notice which you received after filing your tax return last year to find the amount indicated in the “[Current year] RRSP Deduction Limit Statement” section. If you cannot find your notice, contact a CRA tax office or visit the electronic services section of the Canada Revenue Agency

When should I start contributing to an RRSP?

You can start an RRSP as soon as possible, that is, the year you start earning contribution room (the year after you started earning an income). Moreover, when you turn 19, you can contribute $2,000 over the limit. Time is money: the earlier you start contributing, the bigger your RRSP will be.

Can I make a spousal RRSP contribution?

This continues to be possible to the extent of your own RRSP room. Financial planners consider this as a good way to split income at retirement, and see this as particularly advantageous if your spouse has a significantly lower salary or is not in a pension plan. You would receive the tax deduction on your tax return for the amount of the allowable spousal RRSP contribution. Since the RRSP is in your spouse’s name, it would eventually be taxed at your spouse’s tax rate when the spousal RRSP is accessed.

What is an RRSP?

A Registered Retirement Savings Plan is a personal savings plan registered with the Canadian federal government allowing you to save for the future on a taxsheltered basis.

What are the benefits of an RRSP?

Immediate tax benefits. Taxsheltered savings. RRSP savings are not taxed until withdrawn

How much will I save on taxes?

All it depends on your current tax rate. For example, if your marginal tax rate is 35% and you contribute $5,000 to your RRSP, your tax benefit will be $1,750.

Can I carry-forward unused contribution room?

Yes. Your unused contribution room is shown on your CRA Notice of Assessment.

Can I transfer my RRSPs to any other financial institutions?

You are not subject to tax at any time you wish to transfer RRSPs between financial institutions or between investments within your RRSP portfolio.

Segregated Funds Top
What are Segregated Funds?

Segregated Funds are a deferred annuity contract between an insurance company and a policy owner. The policy owner makes deposits through the contract and the insurance company invests the money in Segregated Funds. Segregated Funds are an asset of the insurance company and are similar, in essence, to money held in trust for the investor. The segregated nature protects the investor against the insolvency of the insurance company. Segregated Funds issue by Insurance company with Maturity and Death benefits guarantee and guarantee can be 75/75, 75/100 and 100/100. It is based on the Segregated Funds contract term.

What are the death benefits and maturity guarantees of Segregated Funds?

All segregated Funds offer death benefits and maturity guarantees. The amount or percentage of guarantee can vary between products and offering companies. Some companies offer segregated funds with several guarantee options, while others only offer a single guarantee option. Segregated Funds are required to have a minimum 75% maturity guarantee and a minimum 75% Death Benefit Guarantee. Many companies offer up to 100% Death Benefit Guarantee, but it is less common for a company to offer a 100% Maturity Guarantee. Specifically, the Death Benefit Guarantee offers protection from losses incurred by the investor during their lifetime. The guarantee is paid upon the investor’s death. The Death Benefit Guarantee percentage is selected with the initial purchase of the contract. At the time of the investor’s death, the beneficiaries would receive the greater of the guaranteed amount or the investment’s market value. This enables the investor and their heirs to benefit from market growth while safeguarding the investment capital. A Maturity Guarantee safeguards the investment’s capital until the end of a specified time period, usually in 10- or 15-year terms. Newer segregated funds have also extended the maturity date until the investor reaches 100 years of age. With the recent turmoil in financial markets, the trend for segregated funds is to offer longer and longer maturity terms and lower (75%) Maturity Guarantees. The Maturity Guarantee ensures that the investor will receive the higher of the investment’s market value or the guaranteed amount on the date of maturity. Principal protection guarantees are typically reduced on a proportional basis by any withdrawals made from the fund

How are Segregated Funds treated for Income Tax?

Tax treatment for Segregated Funds is similar in many ways to the taxation of mutual funds, however, there are a few differences including the following:

  • Segregated Funds allocate income and capital gains/losses to contract holders each year. This is different from mutual funds, which distribute or pay out income to investors in either the form of additional units or cash payments. This allocation of income does not change the number of units held nor a corresponding drop in price. The allocations will increase or decrease the investor’s adjusted cost base. Investors in Segregated Funds are allocated income, but do not actually receive a payment or distribution.
  • A Mutual Fund cannot allocate capital losses to unit holders. Losses are subtracted from capital gains within the fund and only the fund’s net capital gains will be distributed to an investor and reported on their T3 Income Tax information slip. For a mutual fund, in a year where capital losses are greater than capital gains, the excess losses are carried forward to offset future capital gains.
  • Segregated Funds can flow through capital losses to contract holders. The capital losses are recorded on the investor’s T3 Income Tax information slip. This gives the Segregated Fund investor the advantage of taking the capital losses and applying them to other capital gains in the same year. The investor can also carry the Segregate Fund capital losses back three years and apply them to gains previously claimed and taxed.
  • Segregated Fund contracts allocate income and capital gains/losses on December 31st, regardless of the underlying fund’s distribution date. For example if the underlying mutual fund declares the distribution date as December 10th, the segregated contract will not distribute the income until December 31st.
  • Purchasers of Segregated Funds in a taxable account might consider buying the fund at the beginning of the year to avoid receiving the income tax responsibility for Segregated Fund income, even thought they did not actually receive the income benefit.

Do segregated funds have additional costs?

Segregated funds are really two separate purchases: the first is a mutual fund and the second is an insurance wrapper. The insurance coverage will increase the investment’s annual cost, it depends on the fund you choose and type of guarantee you choose. Fee can be between 0.10% to 1%. As a result, segregated funds have higher management expense ratios (MERs) than mutual funds.

What is the difference between Mutual Funds and Segregated funds?

Here are some basic difference between Segregated funds and Mutual funds

Mutual Funds
Segregated Funds
Maturity Guarantee
Death Benefits Guarantee
Bypass Probate*
Maturity Guarantee Reset*
Death benefit inflation protector*
Creditor protection*
Automatic Death Benefits Reset*

Who can open a TFSA?

Any individual who is 18 years of age or older and who has a valid Canadian social insurance number (SIN) is eligible to open a TFSA. You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you will be able to contribute up to the full TFSA dollar limit for that year. In certain provinces and territories, the legal age (depends on the age of majority) at which an individual can enter into a contract (which includes opening a TFSA) is 19 years old. Beginning in 2009, individuals turning 18 years old in these jurisdictions who would otherwise be eligible, will accumulate TFSA contribution room for that year, and will carry it over to the following year.

What is my annual contribution limit for 2013?

Starting in 2009, TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older, have a valid Canadian social insurance number and are a resident of Canada. The annual TFSA dollar limit for 2012 is $5,000. The annual TFSA dollar limit for 2013 is $5,500.

Can I have more than one TFSA account? Does the contribution room apply across all TFSA accounts?

You can have more than one TFSA accounts. However, your contribution room applies across all accounts. For example, say you have two TFSA accounts at Bank and Insurance company and your 20010 TFSA contribution room is $5,000. You are allowed to divide your contribution between your two accounts however you wish (you can contribute $2,000 to the Bank account and $3,000 to the Insurance company account) but the total contributions across all accounts cannot exceed $5,000.

Do I have to contribute to a TFSA every year?

No, it is not mandatory. Unused TFSA contribution room will be carried forward to the next calendar year. For example, assume that you are unable to make any TFSA contribution in 2009,2010,2011,2012. Your TFSA contribution room will be $25,500 in 2013 ($5,000 unused contribution from 2009 + $5,000 new contribution room for 2010+$5,000 new contribution room for 2011+$5,000 new contribution room for 2012+$5,500 new contribution room for 2013).

How is a TFSA different from an RRSP?

  • Contributions to a TFSA are not tax deductible.
  • Withdrawals from a TFSA are tax-free and do not result in lost contribution room. However, re-contributing in the same year may result in an over-contribution amount which would be subject to a penalty tax.
  • With a TFSA you don’t need earned income to accumulate contribution room.
  • There is no requirement to convert the TFSA to an income payment any age.
  • You can give money to your spouse to open a TFSA without being subject to the Canada Revenue Agency’s (CRA) attribution rules.

What happens if I over contribute for the year?

Similar to an RRSP, a penalty will be assessed by Canada Revenue Agency (CRA) of 1% per month on your excess contribution.

What is the advantage of a holding a RRIF?

The biggest advantage of holding a RRIF is that it allows you to continue with the investment program that you have established and therefore provides the most flexibility of all your retirement income options. You can elect to take payments beyond the required minimum, and you have the ability to change your investments should your circumstances, or the markets, change. As well, a RRIF offers protection from inflation by allowing you to increase the amounts of your payments over the years to keep pace with your higher living costs.

I am 70 year old and I have a more than one RRSPs, should I convert each one to a RRIF?

A convenient approach is to convert all your RRSPs into one single RRIF. This will be more convenient for you to manage your minimum annual payments.

What if I am still earning money when I open a RRIF?

This will have no impact on your RRIF. You will not be able to contribute additional money to your RRIF but you may be able to reduce your taxes by making contributions to your RRSP as long as you are under the age of 71 and have unused RRSP contribution room available.

Do I have to withdraw money from my RRIF right away?

In the first year that your RRIF is opened, you are not required to make a mandatory withdrawal. Once you reached age 71 then you have to withdrawal RRIF minimum.

I don’t need the money from my RRIF. Do I still have to make those minimum withdrawals?

Even though you may not need the funds, government regulations state that minimum withdrawals are required.

What withdrawal options do I have with a RRIF?

You can have a payment by monthly, quarterly or annual payments which way you preferred.

Can I put money from my regular savings account into my RRIF?

No you can’t. The only funds that can go into a RRIF must come from an RRSP.

What happens to the funds in my RRIF when I die?

The funds become taxable income on the date of your death unless you have a spouse or children or grandchildren under the age of 18 who were financially dependent on you at the time of your death. In those cases, the funds in your RRIF can be transferred to their RRSP or RRIF.

Is RRIFs are flexible?

While there is a minimum you have to take out every year, there is no maximum, so RRIFs give you a lot of flexibility. For example, you may want to take out more money in your early, more active years and reduce your withdrawals later in life. Or you might take out more later in retirement to cover additional medical expenses. You may also want to withdraw more at a certain time of year (winter vacations for example) to match your anticipated expenses.

What are my Locked-in RRSP options?

With Locked-in RRSPs or LIRAs, you can elect the following options:

  • Transfer to a Life Income Fund (LIF) (All provinces except PEI, Yukon and NWT)
  • Transfer to a Life Annuity (All provinces)
  • Transfer to a Life Retirement Income Fund (LRIF) (Alberta, Newfoundland, Ontario and Manitoba only)
  • Transfer to a Prescribed Retirement Income Fund (PRIF) for Saskatchewan only

Annuities Top
What is an Annuity?

An Annuity is an amount payable at regular intervals (i.e. monthly, quarterly, or yearly) to an Annuitant commencing on a specified maturity date. The amount of Annuity received after maturity is dependent upon the contributions (premiums paid) made during the deferred period.

How are Annuity payments calculated?

The Annuity amount is based on 4 main factors:

  1. The amount of capital used to purchase the annuity: the higher the amount, the higher the payments.
  2. The going interest rate at the time of purchase: the higher the interest rate, the higher your payments.
  3. Your age at the time of purchase: the older you are, the higher your payments.
  4. The guaranteed number of years you will be receiving payments.

What is a life Annuity?

A contract in which a life insurance company agrees to pay you a lifetime, periodic payment (annuity) in exchange for your RRSP, locked-in RRSP, LIRA, RRIF, LIF or non-registered savings.

  • Provides you with predetermined payments for your lifetime and, in some cases, your spouse’s lifetime.
  • Payments may be guaranteed for a certain period of time (5 to 25 years): in the event of death during this period, your spouse continues to receive the annuity until the end of the guaranteed period. If there is no surviving spouse, the designated beneficiary or beneficiaries receive an amount equal to the present value of the payments for the remaining period.
  • Contract may include a survivor clause where, upon annuitant’s death, payments are made, in whole or in part, to the spouse for his or her lifetime.

What is an Annuity certain (Term – Certain Annuity)?

A contract in which a life insurance company agrees to pay you a set periodic payment (annuity) in exchange for your RRSP or RRIF savings until age 90.

  • Guarantees you regular payments until the end of the specified period or until age 90.
  • If the annuity was purchased with your RRSP, it is automatically guaranteed up to age 90.
  • If death occurs before the end of the guaranteed payment period, payments are made to your spouse until the end of this period. If there is no surviving spouse, your estate receives an amount equal to the present value of payments for the remaining period.

What are the advantages of a RRIF-Annuity or LIF-Annuity combination?

It’s an interesting option for some people.

  • The RRIF or LIF portion ensures investment income flexibility.
  • The annuity portion ensures retirement income stability.

Are there different kinds of Annuities?

There are two major categories: deferred Annuities and income Annuities.

Deferred Annuities: – You can use a deferred annuity to help build your long-term nest egg. You get to defer taxes on earnings until you withdraw, and you also have the option to convert your money into a stream of lifetime payments.

A deferred Annuity can be variable or fixed.

  • A variable deferred Annuity has investment portfolios that you can choose from. The portfolios, which involve investment risk, generally hold stocks, bonds, money market instruments, or a mix of all three.
  • A fixed deferred annuity gives you a fixed interest rate for your savings over a period of time. The rate, as well as your principal, is guaranteed by the insurance company.

Income Annuities: – You can use an income Annuity (also called an immediate Annuity) to meet your spending needs in retirement and to reduce the risk that you’ll outlive your money. In return for an upfront payment, you get a stream of income guaranteed by the insurance company. The income can last for as long as you’re living, as long as either you or your spouse is living, or for a specific number of years. Your payments can be fixed or can vary depending on the performance of underlying investments. The level of payment you’ll receive depends on:

  • The amount of your initial payment.
  • Your gender and age.
  • The interest rates in effect when you buy.
  • The income options that you choose.

Buy & Sell Insurance Top
When does a business need a buy-sell agreement Insurance?

Every co-owned business needs a buy-sell, or buyout agreement the moment the business is formed or as soon after that as possible. A buy-sell, or buyout agreement, protects business owners when a co-owner wants to leave the company (and protects the owner who’s leaving). If a co-owner wants out of the business, wants to retire, wants to sell his shares to someone else, goes through a divorce, or passes away, a buyout agreement acts as a sort of “premarital agreement” to protect everyone’s interests, setting the price and terms for a buyout. Every day that value is added to a business without a plan for future transition, it increases the owners’ financial risk.

Who will pay the premium for buy sell agreement life Insurance?

It is all depends on how you setup buy sell agreement life Insurance. If you setup corporation is the owner and beneficiary then cooperation will pay the premium. If you choose Criss-Cross method this each of the policy owners will pay the premium.

How to decide how much life Insurance you need under Buy Sell Agreement?

It is depends on how much your business worth and how many person involve under buy sell agreement life Insurance. You can contact your accountant about your business worth and then talk with your lawyer to do buy sell agreement and then contact Yes Financial Services advisor to provide you buy sell agreement life Insurance.

Group Benefits Insurance Top
Why do I need Group Plan for my employee?

A group insurance plan can be a flexible, affordable way to add real value to your total compensation package. In fact, for many employees, their benefits plan may be one of the reasons they stay with their current employer. A group life, health and dental insurance plan can help you to:

  • Attract high-quality employees.
  • Boost morale, increase loyalty and reduce turnover.
  • Promote a healthy work environment, improve productivity and reduce absenteeism.
  • Deliver compensation in a tax-effective manner.
  • Differentiate your company from your competitors.

What are the Benefits from a group plan?

Depending on the plan options you choose , a group insurance plan can offer coverage to your employees and their families for:

  • Hospitalization
  • Illness, disability or death
  • Dental care
  • Prescription drug care
  • Supplementary medical services
  • Travel Coverage
  • Long Term Disability
  • Short Term Disability
  • And much more as you choose

From which insurance company I should buy employee benefits?

We are a full-fledged broker, and as such can quote from all leading Canadian insurance companies that offer group benefits, like:

  1. Manulife Financial
  2. Empire Life
  3. Canada Life
  4. Desjardins Financial
  5. Standard Life
  6. Sun Life
  7. Equitable Life
  8. SSQ
  9. GMS
  10. Assumption Life
  11. GMS

Key Person Insurance Top
What kind of employee would be a key person?

A key person is an employee or a business partner/owner whose skills and intellectual capital are so valuable that your business would suffer substantial financial losses due to that person’s death or inability to work due to a disability. This person has knowledge, skills or talent that few others can duplicate. The industry he or she works in, or the nature of the work, may be so specialized (such as research or design) that there are few others with the skills needed.

Why is key person insurance so important?

Key person insurance can provide your business with the working capital it needs to keep operating and to fund the recruitment and training of a replacement should a key person pass away or become totally disabled. If the key person is the most significant contributor to your business, your company may not be able to continue operating without that person. In that case, key person insurance could compensate you (or your other business owners) for lost income should your business have to close down.

How long does key person life insurance provide protection?

This depends on the type of life insurance plan you choose for the policy. You can choose from Term 10 to Term 20.

What exactly is a Key person?

A key person is any valuable member of your company who, should they pass away or suffer from a critical illness, will result in financial losses for the company. The most common types of a key person are: Company directors, shareholders, CEO’s, chairman, partners. Also a sales manager or top salesperson could be a significant loss to a company. In a manufacturing environment the loss of someone with expert technical knowledge would impact negatively on an important project. The ability to hire an immediate replacement could mean the company carries on trading, or suffer damage to reputation and profit.

Are the premiums paid on the policy by the employer deductible for tax purpose?

It is depends on how employer setup Key person Insurance policy. If the premium is tax deductible then befits are also taxable.

Business Overhead Expense Insurance Top
What is Business Overhead Expense (BOE) Insurance?

Business Overhead Expense Insurance is an expense reimbursement policy that covers the fixed monthly overhead expenses required to keep a business running until the return of the insured owner, after a period of disability. This allows business operations to continue until the insured owner either returns to work or makes a decision regarding the future of the business.

Why Should I Get Business Overhead Expense Insurance?

If you want to protect your business in the event of your extended disability, this benefit is for you. When used together with Personal Disability insurance, Business Overhead Expense benefits can let you recover, worry-free, while your business continues to run as smoothly as possible. This plan doesn’t just protect your business; it gives you peace of mind.

What type of business owner should have Business Overhead Expense Insurance?

Business Overhead Expense Insurance is designed for principals of closely held businesses or practices and owners of small businesses. It is most vital for businesses and practices in which the owner’s ability to generate income makes the difference between the office being open or closed for business—for example, Real-estate agent, physicians, lawyers, accountants, Mortgage broker and others.

What type of expense can be covered under Business Overhead Expense Insurance?

Business Overhead Insurance usually covers expenses, including wages and salaries, utilities, taxes, rent, accounting and legal fees, interest, office supplies, principal and interest on mortgages, malpractice and other insurance, and other operating expenses, up to the amount insured in the applicable policy. The owner’s income is usually not covered.

How long will the policy be in effect?

Business Overhead Expense policy can be maintained until the insured reaches age 65. After age 65, the policy is conditionally renewable while you are employed full-time (minimum of 30 hours per week) and responsible for the expenses of maintaining your office or business.

Group Critical Illness Insurance Top
What is Group Critical Illness Insurance?

Group Critical illness Insurance is group plan offered by companies without medical with existing group or separate standalone group plan. Insurance amount depends on group size. For more information about Group Critical Illness Insurance please fill request form.

Are there any medical questions for Group Critical Illness Insurance?

Medical question yes or no depends on where you are apply Group CI insurance coverage and depending on size of your company, your employees, and their spouses, may be able to get up to $50,000 of CII coverage simply by filling out a short form. And, their children can each get up to $20,000 in coverage. There’s no requirement for any medical tests or health background to be provided. Employees who would like to apply for more coverage (as much as $200,000) would need to complete a health questionnaire for our evaluation. This type of coverage at your group rates is available only through an employer-sponsored plan. Coverage is available to your employees, their spouses and their dependent children. Employees just need to be a Canadian resident between the ages of 18 and 65 and actively at work. Employees will appreciate the value that the Optional CII benefit can provide in protecting them and their families. What’s more, payment from a CII claim won’t impact a member’s other benefits. Optional CII is paid independently of all other benefits.

Group RRSPs Top
What is a Group RRSP?

A Group RRSP is a plan set up by an employer to allow employees to make RRSP contributions through at-source deductions from their pay.

Why should an employer provide employees with a Group RRSP?

For an employer, there are two major benefits in setting up a Group RRSP. First, the Group RRSP can be integrated with the corporate compensation policy through employer contributions. This can turn a Group RRSP into a powerful incentive for attracting and retaining top employees. Second, this kind of program can position the company as a top employer that cares about the financial well-being of its workers.

Are Group RRSP contributions tax deductible?

Employee contributions are fully deductible from the employee’s income, like any RRSP contribution. As well, employer contributions can be deducted by the employer.

Can a Group RRSP be used for the Home Buyers’ Plan (HBP)?

Yes. A Group RRSP is no different from an ordinary RRSP in this respect: the account holder’s savings can be used under the HBP as a down payment on the purchase of a first home.

What are the Key Features of an Group RRSP ?

Unlike Registered Pension Plans, there is no “plan document” which sets out the terms and conditions under which benefits are payable. The standard Group RRSP has been pre-approved by Revenue Canada. However, certain administrative guidelines should be set by the company in order to run an effective RRSP program, for example:

  • Minimum payroll deduction – e.g. $50 per month
  • Frequency of investment election changes
  • Frequency in changes in asset mix
  • Restriction on withdrawal of funds (and waiting period for re-entry.)

What are the Advantages of a Group RRSP?

  • Employees receive tax deductions for all contributions. In addition, for payroll deduction contributions, companies may apply for employees to receive immediate tax relief on contributions deducted at source.
  • Interest gains/investment appreciation accumulates on a tax-free basis until they are withdrawn.
  • The payroll deduction feature makes it “easier” for employees to put aside funds for retirement.
  • Immediate tax break: contributions are made by deductions at source.
  • Money in an RRSP is not locked-in.
  • Numerous and varied investment options.
  • Competitive management fees.
  • Option of transferring locked-in amounts in a locked-in retirement account (LIRA).

What are the Advantages for your organization?

  • Flexible and competitive administration fees.
  • Simple to manage, which cuts back on administrative tasks.
  • Tax break: employer contributions are considered as a salary expense and are deductible from the organization’s taxable income.
  • Optional participation for the employer.
  • Deal with only one contact person.
  • Several ways to make contributions.