Articles
Why your company life insurance is probably not enough
Some Canadians are fortunate enough to get great workplace benefits. These often include health and dental coverage, a company pension and company share ownership options. Another common benefit is company life insurance (known in the industry as group life insurance).
There are several advantages of company life insurance:
It’s usually low cost.
You’re typically covered as soon as you join the company or after a specified waiting period.
You’re guaranteed to be accepted (up to the maximum amount allowed without completing a medical questionnaire).
It’s easy to apply for.
Not surprisingly, workplace life insurance is popular. Over 60% of Canadians who have life insurance coverage get it through their employer. However, this next stat is where the issues start: over half of those people only have company life insurance.
Given that workplace life insurance coverage is typically limited, most people have inadequate coverage. Let’s take a look at how much life insurance you actually need and what your life insurance options are.
https://www.ig.ca/en/insights/company-life-insurance-is-not-enough
Why you need to choose your executor wisely
Creating a will means making big decisions that will impact your family for years after you’ve gone. While divvying up assets, assigning care for dependants and tax planning will take up most of your will-creating conversation, you’ll also have to consider who should be the executor of your will (or the liquidator in Quebec).
Your executor is the person who ensures that your wishes, as laid out in your will, are carried out. Naturally, finding the right person is critical to any good estate plan. An executor’s obligations can include everything from arranging your funeral and making sure your dependents or pets are looked after, to filing tax returns and administering assets as set out in your will.
So, who should be the executor of your will?
https://www.ig.ca/en/insights/choosing-an-executor-for-your-will-in-canada
Disability insurance versus critical illness insurance: which do you need?
When it comes to insurance, there are some types that we automatically take out. Car insurance, home insurance and life insurance are often considered non-negotiable essentials.
While auto insurance is a legal requirement and home insurance can be a mortgage requirement, personal insurances are not obligatory. Nevertheless, 22 million Canadians have life insurance. However, other forms of personal insurance, while just as important, have less of an uptake. Just over half of Canadians have disability insurance, while only 2 million Canadians have critical illness insurance.
https://www.ig.ca/en/insights/disability-insurance-versus-critical-illness-insurance
How to avoid mistakes when making a will — and other estate planning tips
It’s not easy to talk about estate planning; after all, who wants to think about what might happen when they’re no longer here? It’s also a complicated topic, covering investments, tax and real estate, not to mention hard-to-navigate family issues. There’s far more to it than just making a will — find out exactly what’s involved in estate planning. As a result, many people make mistakes or forget important steps when developing their estate plan, which can lead to trouble for their loved ones.
Therefore, before you start making a plan, it pays to be aware of these common mistakes when making a will or estate planning.
https://www.ig.ca/en/insights/how-to-avoid-mistakes-when-making-a-will
What is a power of attorney, and why do you need one?
Canadians are pretty good at some aspects of estate planning. Almost half of Canadians have drawn up a will, and that number shoots up to 78% of Canadians aged 55-plus.
However, Canadians are not as efficient at being prepared for times when they’re no longer able to make their own decisions. Less than a third of Canadians have a power of attorney (or protection mandate in Quebec) in place to make financial decisions on their behalf. This oversight could bring considerable problems to family members further down the line.
Let’s take a look at how a power of attorney works, how to set one up, what happens if you don’t have one and why it should be part of your overall estate planning.
https://www.ig.ca/en/insights/why-you-need-a-power-of-attorney
2024 federal budget
The 2024 federal budget tabled by Finance Minister Chrystia Freeland on April 16 contained several proposals that will impact the financial, tax and estate plans of Canadians. The following is a summary of the most relevant budget proposals that may impact Canadians.
https://www.igprivatewealth.com/en/insights-and-ideas/federal-budget-2024
Six RRSP benefits you probably didn't know about
Many of us understand the value of the Registered Retirement Savings Plan (RRSP): almost six million Canadians make RRSP contributions every year. Most of us also know about the tax benefits of RRSP contributions and that it’s an extremely versatile and effective retirement planning tool.
RRSPs are typically used for long-term savings, with the money we contribute bringing us a tax deduction. Contributed funds can also grow on a tax-deferred basis until we take those dollars out in retirement. We’re then taxed based on our personal income tax rate in the year we withdraw the money (which, in retirement, should be lower than when we contributed and got the original tax break).
https://www.ig.ca/en/insights/six-rrsp-benefits-you-probably-didn-t-know-about
2024 Market Outlook: Are we heading into a recession or recovery? Why not both?
As we look ahead to 2024, one concern from 2023 is likely to stay with us: the possibility of a recession. It’s important to remember that the 2020 recession was a once-in-a-lifetime event, and since then, the economic cycle has been anything but normal. It's only logical, then, to expect that any subsequent economic slowdown would also take a unique course, in keeping with these extraordinary times.
With that in mind, as 2023 comes to a close, we believe these six key themes will have big impacts on the markets throughout 2024.
https://www.igprivatewealth.com/en/insights-and-ideas/2024-market-outlook
The little-known tax benefits of life insurance
Most people think of life insurance as a necessary expense. It’s something that you almost begrudgingly pay for, in the hope that you’ll never need it, but with the expectation that it will protect your family’s finances, should the worst happen. What most people don’t realize, however, is that life insurance can be used as an extremely useful estate-planning tool that can go far beyond keeping your family financially secure. It can help maximize your estate’s value and ensure that your will is distributed fairly, all while funding your estate’s tax liabilities.
https://www.ig.ca/en/insights/tax-benefits-life-insurance
What happens if you die without a will in Canada?
If you die without leaving a will, it could become a major headache for your family members and loved ones. With no will, the government will decide on who gets your money and assets, and every province and territory have their own distinct intestate rules regarding who will benefit from your estate.
https://www.ig.ca/en/insights/what-happens-if-you-die-without-a-will-canada
Valuing Your Business: A Guide for Medium-Sized Business Owners
Determining the value of your business is a crucial step when considering selling. The valuation process can be complex, involving both quantitative assessments and qualitative judgments. This article guides medium-sized business owners on how to value their businesses.
Dealing with Dementia
IG Wealth Management is a proud sponsor of the Alzheimer’s walk, and as part of that, we want to support Canadians who are dealing with dementia, or may have a family member dealing with dementia.
https://www.igprivatewealth.com/en/insights-and-ideas/dealing-with-dementia
When is the right time to begin taking Canada Pension Plan (CPP) benefits?
A core component of your retirement plan is the CPP retirement benefit (or Québec Pension Plan for Québec residents, which mirrors many aspects of the CPP). CPP offers flexibility as to when payments can begin, which affects how much you could receive. Familiarizing yourself with CPP provisions can help you decide when to start payments and optimize the benefit throughout your retirement.
Permanent life insurance: A tax efficient tool used by many affluent families
When we are young, life insurance is used to protect our family by providing money to replace our income. However, as we approach retirement our need for income replacement lessens and the focus switches to wealth protection. Wealth protection is a permanent concern, so it requires permanent solutions.
How to protect your child’s inheritance
It’s wonderful to be able to leave children an inheritance, but you want to make sure that the wealth you’ve worked so hard to build and set aside for their future is protected, regardless of where life takes them.
https://www.igprivatewealth.com/en/insights-and-ideas/how-to-protect-your-childs-inheritance