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Pat McIver

About Pat McIver

https://mciverinsurance.com

Posts by Pat McIver:

Life Insurance Policy For Parents

Life Insurance Policy For Parents

Most Canadians are enthusiastic about getting home and auto insurance policies set up and scratched off their list. But what about life insurance? Getting life insurance is important when it comes to the crunch, but not always for everybody. Because let’s face it, life is just so busy!

People with loved ones depending on your income should understand how getting life insurance can protect them in case of your demise. Here you can find out everything you need to know about life insurance – how it is done, how much it costs, and what is the right type for you.

What Is Life Insurance?

Life insurance is an agreement between two parties, the insurance provider and you. You need to make monthly payments to the insurance provider so that the insurer pays a sum of money to your family or relatives in the event of your demise. Nobody likes to think about their death. But more importantly, you buy life insurance because your loved ones are going to live after you have passed away and the resources you leave behind for them will matter.

So how does life insurance help? Life insurance can help cover funeral expenses, debt, loss of income, and other important expenses that can arise after your death. You can buy peace of mind by signing on the dotted line. Peace of mind that you will be able to provide for your loved ones even after you are no longer in this world.

How Life Insurance Works?

Going through a life insurance agreement can feel like a tedious and depressing process, right? Understanding how life insurance works is much easier if you understand the following terminology:

  • Policy: a contract between you and the insurer
  • Policyholder: the person that owns the policy, in most cases this refers to you; sometimes also known as the one insured;
  • Premiums: the payments you make monthly or annually to own the insurance policy
  • Death Benefit: the life insurance payment, or the compensation processed at the time of death of the policyholder
  • Beneficiary: the persons you select to acquire the death benefit of your policy (for example, wife, children, relatives, or anyone else you choose)
  • Claim: an official demand to the life insurance company to collect the death benefit

In other words, as you (the policyholder) begin to pay premiums on the policy, the insurance company promises to pay your beneficiaries the death benefit if you die.

Types Of Life Insurance

Let’s start with the basic foundation of life insurance. There are two main types of life insurance. A term life insurance plan is valid for a prespecified period. A permanent life insurance plan is valid for as long as you live.

Term Life Insurance

Term life insurance plans provide coverage for a specified period of time. The beneficiaries receive a death benefit if the policyholder dies while the policy is active.

A term life plan is an affordable option for most people because it maintains the single goal of providing a death benefit to the beneficiaries. A term life insurance plan has affordable premiums because it does not provide any investment opportunities.

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life. Permanent life insurance plans can be subdivided into two different types. Whole life and universal life insurance policies both add a cash value to your life insurance policy. The insurance company maintains the cash value of your policy by taking a significant portion of the premiums and depositing them into a high-interest investment account. 

Permanent life insurance plans offer a customized investment opportunity but they usually come with a higher cost of premiums. Permanent life insurance plans offer the opportunity to increase death benefits for the beneficiaries based on the consistency of premium payments.

When Do You Need Life Insurance?

Having life insurance will feel like a blessing as you get older. Life insurance plays an important role to maintain valuable reserves in some stages of life more than others. Let’s take a look at the impact of getting life insurance in all the different stages of life.

Young Members Of The Workforce:

The average worker that steps into the employment market for the first time can have some student loans that need to be paid. The only thing young members of the workforce with no dependents and no student loans need to be worried about is the burial costs. There is no urgency in getting life insurance at this stage in life if you are covered with a group life insurance policy by your employer.

Newly Married Couples

You have just said your I do’s and started a new life together, with a promise to be at each other’s side for better or for worse. As a new family is one of the best times to purchase life insurance plans that can add value to your relationship especially if you are debt-free. You can rest assured that your spouse has their budget planned in the uneventful case of your demise. This is the best time to purchase a customized life insurance plan.

Parents

Both you and your spouse should have life insurance coverage once you have children. Parents that stay at home perform activities that maintain the family budget to a minimum. Without their involvement, the entire family might have to pay higher costs for childcare and education. You can be confident that your spouse and children will be able to manage their expenses in the event of your death.

You and your spouse should have life insurance by now, do it for your children and spouse.

Senior Citizens

Senior citizens with hefty retirement savings might not need life insurance to help their spouses because they already have the necessary funds. But not all senior citizens have the privilege to retire with an abundant amount of retirement savings.

Some senior citizens might still be making payments on their houses and receiving income from their assets and property. Will your spouse be able to manage themselves with just your retirement savings without the added income from your assets and property? Getting life insurance now might be an expensive option but it will be worth it to maintain the economic stability of your spouse in case of your death.

Getting Professional Advice

Insurance advisors recommend customizing the life insurance policy to meet your specific insurance needs. One of the main reasons for that is that only you can understand the intricacies of your family’s budget. A life insurance expert from McIver Insurance can design a customized life insurance plan based on your specific insurance requirements. They have experienced and qualified insurance brokers who have been working in the Canadian insurance market for well over a decade.

Deducting Health Insurance Premiums If You’re Self Employed

Deducting Health Insurance Premiums If You’re Self Employed

Being self-employed means you need to get your own personal health insurance. You can no longer take advantage of your employer’s plan. You could potentially make use of your spouse’s plan if they have a good one. But the chances of that are often slim.

Being self-employed means that you are now on your own and it is not easy. It is a challenge! With so much to handle, those of us who are self-employed often forget about things like health insurance until there is a medical emergency. 

If you are not insured and there is a medical emergency you can easily be charged thousands of dollars that would otherwise be taken care of by health insurance. With premiums increasing day by day along with deductibles there may not seem any viable and affordable options in the market.

So, how then can those of us who are self-employed afford and find quality health insurance? Well, we are here to help!

Managing Health Care Expenses

Does your monthly budget take a hit after you have just made an unexpected visit to the dentist? Is it a contingency that your doctor would prescribe you medication that will last for the rest of your life? 

With the help of a personal insurance plan, you can relax knowing you have the budget to cover unexpected medical expenses. Ideally, you should be looking for an affordable monthly premium health insurance plan instead of trying to speculate how much your next unexpected medical visit is going to cost. 

Planning ahead is going to be especially crucial for you to remain financially successful in life. Self-employed people must understand that they need to make a healthy lifestyle a constant priority in their life. You do not have the luxury of relying on a corporate health insurance plan if you fall seriously ill. 

Self-employed individuals must make the stand and must have a financial solution for the unexpected costs of medicine, dental consultations, and possible disability coverage. 

Assessing The Cost Of Health Care In Canada

The average Canadian household spends more than $2,300 annually on dental and medical expenses. These expenses include visits to the ophthalmologist, dentist, hospital visits, medication, and other medical expenses not included in public or private medical insurance plans. 

Based on statistics, annually roughly six million Canadians are apprehensive to visit their dentist just because of the high prices. These statistics also mention that self-employed individuals are particularly reluctant to take on extra medical expenses because they have a lower income in comparison to the salaries and benefits of permanent employees of large organizations. 

Practically speaking, it is difficult to suddenly come up with funds if you are confronted with unanticipated medical expenses costing hundreds of dollars. This is all the more the reason that self-employed individuals should have some sort of safety net for extraordinary circumstances and unanticipated medical expenses. 

Can The Self-Employed Claim Health Insurance?

Self-employed tax-paying citizens can deduct premiums against medical payments. These medical payments can qualify as dental, medical, or protensive insurance care coverage for you, your spouse, and eligible dependents. 

This means that the health insurance write-off for the self-employed will benefit them regardless of whether or not they itemize their deductions. The write-off will benefit self-employed individuals because it will lower their adjusted gross income (AGI) and in turn lower their tax.

It is preferred to have a lower adjusted gross income so that you are not unfavorably affected by phase-out rules that can reduce the number of tax breaks you get. Remember that if you are getting tax breaks you cannot deduct the premiums at the time of calculating your self-employment tax liability. 

All of these tax breaks are only applicable if you or your spouse are not participating in any kind of employer-subsidized medical insurance plan. To clarify this with an example, you will be eligible for a deduction of premiums of four months if you were unemployed for the last four months and working on your business. 

Are Insurance Premiums Tax Deductible?

The specific tax situation of your business or organization can determine whether the insurance premiums are tax-deductible or not. Canada’s Income Tax Act contains a wealth of information about the deductibility of insurance premiums and specific rules that apply in certain scenarios. The only problem is that it will take a very long time to read the entire ITA so we will try to give you a general idea. In most cases, disability, health, and life insurance premiums are not tax-deductible for businesses or individuals. 

How Do I Pay For Medical Expenses?

There are three basic ways self-employed individuals can pay for medical expenses

  1. Conventional Medical and Dental Insurance: This is the option that most self-employed individuals should try to opt for if they are financially stable. The self-employed individual pays a regular premium and gets medical coverage. This is a viable option for financially stable individuals because there might be some situations where you might need to purchase “extra coverage” for certain items or pay out-of-pocket for medical expenses that are excluded in the policy. 
  2. No Insurance: Carrying comprehensive medical insurance is not cheap in this day and age. It is difficult to find an insurance provider that will provide the right kind of coverage at the right cost. This leaves financially volatile self-employed business owners with no other option but to not have any medical insurance at all. What you can do is regularly deposit money in a savings account and only use those funds when you fall into a medical emergency. 
  3. Health Spending Account: This is one of the best options for self-employed individuals that have just started a business and plan to continue it for a long time to come. With the Health Spending Account (HSA) your business can pay 100% of your medical expenses. This is a win-win situation for the business and self-employed individual because you save a lot of money and the business gets 100% tax-free refunds. 

What Is The Qualification Criteria For The Health Spending Account?

Any self-employed individual that owns a corporation pays income taxes and has to bear medical expenses that qualify for the health spending account. Almost all kinds of medical expenses are covered through the HSA. The cost of the HSA will vary based on the corporate structure of the organization. This method makes sense especially when you look at it from the perspective of the owner and employee. 

The employer can decide exactly how much medical benefits will be available for certain employees based on the organization’s budget. For example, the employer prescribes a certain fiscal amount of medical coverage for a certain employee. The employee can claim medical expenses up to the predetermined amount for a certain month.

Getting Professional Advice

Remember that this is just a basic explanation of how self-employed health insurance deduction works. It is recommended to seek professional consultation from a local Health insurance firm in Halifax that understands your company’s specific insurance needs like McIver Insurance. With their help, your start-up organization can get personalized insurance advice whether you have a few employees or various departments with several employees in each division. One of the biggest advantages of consulting a professional insurance firm is that with their experience, they can help you get the best rates and meet your insurance demands.

LIFE INSURANCE vs ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE

LIFE INSURANCE vs ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE

Whole life insurance and accidental death & dismemberment insurance (or AD&D as it is also known) do have certain similarities, one cannot replace the other. Life insurance provides your family with financial security in the event of your death barring some specific cases. AD&D insurance, on the other hand, falls under the types of insurance that offer limited coverage, only covering accidental death and injuries, and won’t provide any financial security in the event of death resulting from natural causes or illness.

The only overlap between the two types of coverage is that both payout in the event of accidental death. Generally speaking, at a comparable price point, life insurance coverage encompasses more causes of death than AD&D insurance’s limited coverage options.

The above notwithstanding, both have their own pros and cons, and some basic features to be aware of, and we’ll be going over the difference between life insurance and AD&D today in this article. If you’re deciding which type of coverage to opt for, then this article is perfect for you.

LIFE INSURANCE: BASICS, PROS, AND CONS

Life insurance is a way for you to provide financial protection to your family and loved ones in the event of your death. One pays premiums either on a monthly or annual basis, depending on the insurance provider you choose to go with. Named beneficiaries are given benefits under the policy, and it serves as an effective way of income replacement, allowing families to deal with financial responsibilities even after their loved one has passed away. Want to learn more? Check out our blog that discusses how much life insurance you might need.

There are two main types of life insurance. Term life insurance is the first, which provides coverage for a set period of time. Policyholders pay premiums for that set term and should the unfortunate happen during that time frame, then beneficiaries of the policy will receive associated benefits. The other type is whole life insurance, which is for a permanent term and remains active as long as premiums are paid.

If you have dependents, then this is the best option for you, but even then it would be best if you do a proper assessment. While there is no denying that a tax-free death benefit paid to your loved ones will offer a great deal of protection, it can be costly for people who are a bit older or those who have pre-existing medical conditions.

Life insurance also tends to be a more affordable option when compared to other similar products, but you need to be aware of your return before signing anything. Term insurance can be a good investment option, but if coverage and financial security for your family are your main concerns, then term insurance would be disadvantageous. Once the term is over, and you look to subscribe to another policy, you’ll be facing much more expensive premiums and probably lower payouts as well.

AD&D INSURANCE: BASICS, PROS, AND CONS

AD&D insurance is a type of policy that provides financial protection in the event of death or injury which is caused by accidents only, like car accidents, a plane crash, or a slip and fall. Therefore, your loved ones would not be receiving benefits if you were to die from natural causes such as illness or old age.

AD&D insurance also provides protection to the policyholder if there is an accidental injury or loss of limbs due to an accident. However, injuries and dismemberment will only result in a partial payout, whereas death from accidents will result in a full payout. It’s important you check these details if you’re subscribing to an AD&D policy and speak to an insurance broker in detail. 

The foremost pro of AD&D insurance is that it offers additional protection on top of life and disability insurance. However, the coverage itself is quite limited in comparison to life insurance. Also, while AD&D insurance will pay benefits for injuries, it offers more supplemental protection than a standalone policy.

IS AD&D INSURANCE WORTH IT?

AD&D insurance will be able to provide you with some extra protection, such as for injury and dismemberment, which life insurance would not. As such it can be a good idea to supplement your life insurance with AD&D insurance to provide additional coverage. 

However, under no circumstances should you consider using your AD&D policy as a substitute for permanent life insurance. Some will argue that if they are younger, then it makes more sense to opt for AD&D, as the chances of dying with natural causes at a young age are lower. This does not mean you use AD&D as a substitute for term life insurance either though.

AD&D policies are not whole life and you’ll be looking at a 20-year policy usually. This means that after 20 years you’re without protection and will need to opt for life insurance. However, if you subscribe to a life insurance policy late in life, then you’ll need to pay higher premiums. In fact, one of the biggest advantages of subscribing to a life insurance policy early in life is because premium payments tend to be quite low and you can lock that rate for life if needed.

AD&D VS. LIFE INSURANCE: SPEAK TO AN HALIFAX INSURANCE BROKER TO FIND OUT WHO WINS

The simple answer is that nobody really wins. It’s about what type of coverage you’re looking for and what kind of payout you’re expecting. When making decisions of such magnitude, it’s best to speak to an expert.

At McIver Insurance, you can speak to a whole range of insurance experts to assess your options and choose what is best for you and your loved ones. We’ll explain the benefits you can achieve through an accidental death insurance policy in contrast to other types of insurance, allowing you to make a decision that provides you and your family with comprehensive coverage. We have a wide range of accidental death plans available on our panel and we’re sure we’ll find the right one for you.

If you live in the Halifax, NS, area, then get in touch to talk about a financial protection plan from the best insurance companies and a comprehensive updated list of rates. Whether it’s life insurance, health insurance, or disability insurance, we’ll have all the answers for you.

Life Insurance Policies for Couples

Life Insurance Policies for Couples

Life can be very uncertain and unfair. Many of us have found ourselves saying goodbye to a loved one unexpectedly and abruptly. Apart from the emotional pain of dealing with the burden of death, one could also find themselves in a world of financial shortfalls with the loss of income. Funeral expenses alone could amount to a substantial sum and have put people in debt at times.

This is where life insurance coverage comes in, as it can help couples deal with any unforeseen financial impact that may arise in the event one of them were to meet an untimely and unfortunate demise. Couples can opt for a joint insurance policy, where either partner (and any kids they may have) could be the beneficiary of the policy. You could contact an insurance broker like Pat McIver to learn more about specific policy structuring options.

However, today we’ll still be talking to you about joint insurance policies to give you a general overview and help you formulate questions if you were to consider a joint policy and speak to a professional advisor.

TYPES OF JOINT INSURANCE

One can opt for the payout to be structured in a way so as to payout upon the death of one partner, or after both partners have passed away.

The first type is called “first-to-die life insurance” where the life insurance benefit is paid upon the death of one of the partners. This is found commonly among younger couples and serves as a way of replacing the income of the partner who has passed away. The second type is called “second-to-die life insurance” and it pays out only when both partners have passed away.

Quite obviously, second-to-die life insurance won’t provide any household income replacement, so it typically forms a part of estate planning, with benefits going to surviving heirs and other named beneficiaries like family members or charitable organizations.

HOW IS JOINT LIFE INSURANCE DIFFERENT?

There are a few differences to note when it comes to individual and joint policies. An individual policy covers only one person and will pay out when that one person dies. Whereas joint policies provide coverage for the two people who subscribe to the policy and would payout in the event either one of them were to die.

As mentioned above, a joint insurance policy doesn’t require that the two people subscribing to it be married and either will be beneficiary to the death benefit regardless of marital status. However, if you have an individual policy, and you want your partner to benefit from the policy should the unforeseen happen, then you would need to be married or in a common-law partnership.

Finally, joint coverage can be more affordable. Considering two people are jointly paying for the same amount of money that they would have to pay individually under separate policies. However, the total payout of a single joint insurance policy would not be the same as that found with two separate policies of the same value.

In a nutshell, a joint insurance policy is a way of gaining affordable security for young couples. There is no reason that insurance for couples, and the security that it offers, be exclusive to a certain economic class of people. Moreover, if you’re opting for a second-to-die life policy, then you’ll have control over the estate planning in the event your partner were to pass away and, for example, you can alter beneficiaries or, if needed, tap into the policy’s cash value.

DRAWBACKS TO CONSIDER

While there is no doubt that joint policies can provide life insurance protection to couples to help deal with any financial responsibilities and unforeseen future expenses, there are certain drawbacks of affordable coverage that one should consider. First and foremost, joint insurance policies are a niche product and not many insurance companies carry such policies. 

Even if you do find a life insurance company that provides joint policies, you’d be restricted to a few life insurance options. Most providers who do offer joint policies won’t offer permanent life insurance, and if you’re going with a term policy, you could not see many benefits when the term concludes. This does not mean you won’t find a provider that offers both permanent and term life insurance under a joint policy, but it’s possible you might have to look a bit hard.

TALK TO A BROKER NEAR ME

A leading insurance broker located in Halifax, NS, is McIver Insurance. They specialize in all types of insurance, be it dental insurance or even your existing life insurance plan. They can offer transparent and updated life insurance quotes, along with professional advice to enable you to make decisions with confidence. If you are looking for life insurance in Nova Scotia, McIver promises the best policies that are tailor-made for you. Speak to one of their consultants today to learn more!

Benefits for Small Business in Nova Scotia

Benefits for Small Business in Nova Scotia

Benefits for Small Business through Medavie Blue Cross is a brand-new group benefit offering for employers with 2-10 employees in 2021.  The plan offers a full range of benefits from Life Insurance, Accidental death & dismemberment, Dependent Life, Long Term Disability, Extended Health Care, prescription drugs, and dental care.  You are pooled with other small businesses, which provides a lower administration fee and a simpler renewal process.  

At McIver Insurance, we see this plan as the future for small business benefit plans.  

Be proud of the benefits you offer

  • Promote employee health
    Offering employees’ access to health care resources when needed, means fewer sick days and fewer absences
  • Stand out to top talent
    Show your current employees and your future recruits that you care about their wellbeing and success.
  • Make a positive impact 
    Employee health and happiness directly impacts the prosperity of your business. 
  • Mental health resources
    Access to essential support, either virtual or in-person

What are the plan options?

Benefits for Small Business includes two plan options, Entry and Essential.  The chart below shows the differences between the plans.

EntryEssential
Life Insurance | AD&D$25,000$50,000
Prescription Drugs$3,000/calendar year$5,000/calendar year
Extended Health Care80% EHCUp to $500 calendar year per practitioner80% EHCUp to $600 calendar year per practitioner
Dental CareBasic care: $1,000/calendar yearBasic care: $1,500/calendar year
Major restoration: $500/calendar year
Emergency Medical Travel$2,000,000 per trip; Max 180 days$2,000,000 per trip; Max 180 days
Includes trip cancellation and baggage loss coverage
Long Term DisabilityX

Aside from the great benefits, what else will my employees get? 

Submit claims with a photo, search drug and prescription details, use the mobile ID card & much more.

Great discounts on a variety of health-related products & services 

Customized health advice and information including an assessment tool for an overall health snapshot

In case of a serious illness, members and their dependents can have their medical files reviewed by world-class medical specialists

If you choose to include it in your organization’s plan, your employees will have more choice where they spend their health dollars. This account can be used to cover eligible health and dental expenses not covered by the group plan.

Optional Benefits 

Employees can further enhance their life and health protection with benefit options they can pay for at preferred member rates:

  • Optional Critical Illness – A lump-sum amount is paid in the event of a serious illness.  36 conditions are covered
  • Optional Life – Offers additional protection from financial hardship in the event of a death.
  • Accidental Death and Dismemberment – Provides payments in the event of an accidental death or an accident resulting in a serious injury such as loss of a limb, loss of eyesight or paralysis. The benefit is an optional add-on to Optional Life Insurance. A

How do the pricing and renewals work?

Claims are pooled together with other small businesses to protect you against the financial impact of high claims activity. This helps ensure your plan remains more affordable over time.  The rates are guaranteed for a period of 12-23 months. The plan renews annually.  

 

Group Benefits Near Me

Group benefits can be a big asset for your company: protecting your employee’s health is a high priority.  If you are looking for a Group benefits insurance policy that is suitable for you, McIver Insurance Inc, based out of Halifax, NS, is certainly a great place to start. 

Is Life Insurance Taxable

Is Life Insurance Taxable?

Understanding Your Life Insurance Policy

Understanding your life insurance policy is important, especially when it comes to the financial benefits it provides for beneficiaries. After all, life insurance policies are an essential contingency plan if something untoward happens to you. 

The death benefit of your policy can help your family to cover their financial expenses, pay off any outstanding debts, or to meet day-to-day finances. In short, your life insurance policy will act as a financial backup for your estate or beneficiary, especially if you were the only breadwinner. 

However, you may be thinking about whether life insurance policies are taxable or not? Let’s find out: 

Is Life Insurance Taxable in Canada? 

Tax on life insurance payouts will depend on the type of policy. However, as a matter of fact, the majority of life insurance payouts are not subject to taxes. The beneficiary of a life insurance policy will not have to report the life insurance proceeds received by them on their tax return. 

The beneficiaries are not supposed to pay any taxes on life insurance because it will come under the category of financial gifts and inheritance. 

To make sure that your family gets tax-free death benefits, you will have to designate them as your only rightful beneficiary, this way no part of the benefit is paid to your estate. It is essential to do this because your estate can automatically be considered as the beneficiary, if not specified.

Importance Of Life Insurance

Life insurance death benefits can act as a safety net for the beneficiaries. They are not subject to taxes and are received as a single payment by the beneficiary. It can be used to help pay off any outstanding loans and debts, funeral expenses, and/or assist with mortgage payments and day-to-day expenses. A death benefit can be a lifesaver to the loved ones you leave behind. 

Additionally, it can save your family from selling assets to meet financial needs. The recipient of the death benefit will not have to report it on their taxable income and will not file it in his/her Canadian tax return. This includes both, term life insurance policies and permanent policies. 

When Can A Life Insurance Taxable Event Occur

The life insurance premiums you pay are invested so interest can be earned on it and over time your amount of cash increases. Permanent life insurance policies have huge potential to accumulate cash value depending on the cost basis. 

And if for any reason you decide to surrender or do a partial surrender of your policy, the withdrawn cash will then be taxable and the amount of interest that you have earned over the course of the policy will then be subject to income tax. 

Any interest earnings that your beneficiaries will receive will be a taxable benefit so a certain percentage will go into paying taxes.  

Tax Reporting Rules for Life Insurance Payouts 

Receiving life insurance payouts in Canada is very easy, thanks to the Canadian Revenue Agency. They have simplified the tax reporting procedure and these payouts are not to be reported unless there are interest earnings involved which are subject to taxes. 

The insurance company will provide you with a T5 slip if interest earnings are included in the payout. Similarly, the beneficiary will have to report the interest earnings on line 121 of their tax return. Make sure to check out the policy for cash payments with your provider for further information.

How to make your life insurance more efficient for beneficiaries

People who have a habit of planning and those who want to secure a better future for their family and their future generations are always looking for opportunities to take advantage of. Investments, saving plans, and life insurance are a major part of their portfolio. 

However, investing money in such financial products is an easy thing to do. The difficult part is figuring out how to manage and make them more efficient for the beneficiaries they are intended for?  

You can work out a plan with your life insurance company or financial advisor to find legal ways in which taxes can be reduced on life insurance proceeds. You will have to check the tax rules and laws of your province. But most importantly you will have to make a will and designate beneficiaries.

Naming beneficiaries to your life insurance providers can help quicken the distribution of assets after your death. Your beneficiaries will get the payouts in privacy and will not be left at the mercy of your estate.

Remember to discuss the beneficiary payment options with your insurance company to get the best possible payment plan.

Can I claim life insurance on my income tax?

Life insurance cannot be claimed on income tax because the insured person pays the premium after paying all taxes.  

Will my spouse/children pay my taxes after I die?

Your policy will be used to payout taxes after your death. The percentage deducted will be used to pay taxes owed by you to the government. These taxes are paid before the asset distributions.

In the case of an insolvent/bankrupt person, tax attributes will have to be adjusted.    

When do I pay tax on life insurance?

All Canadian life insurance policies will require you to pay taxes when you partially or fully surrender your insurance policy. “You might also have to pay taxes if you borrow directly from the life insurance policy, and the amount that you borrow exceeds a certain amount called the adjusted cost basis of the policy. The longer you own a policy, the higher the cash value will be and, over time, the lower the adjusted cost basis will be.” So, in essence, the amount of cash accumulated on the adjusted cost basis will be taxed.

Life Insurance Providers Near Me

Life insurance policy proceeds can be the biggest asset for your loved ones after your death. If you are looking for an insurance policy that is suitable for you, or are looking for financial or tax advice then McIver Insurance Inc, based out of Halifax, NS, is certainly a great place to start. 

McIver Insurance Inc. offers term insurance and permanent insurance policies all across Atlantic Canada. They also offer consultancy, guidance, and professional advice to help you make the best decisions when it comes to securing your financial future.

Critical Illness & Long-Term Disability Coverage in Nova Scotia

The Difference Between Critical Illness & Long-Term Disability Coverage in Nova Scotia

There are many types of insurance coverages in the marketplace, and it can be overwhelming to decide which coverage is right for you.  There’s Life, Health, Home, Auto, Dental & Liability insurance just to name a few but only two specific types of coverage options can pay yourself in the event of an illness or disability, Critical Illness and Long-Term Disability insurance.  Let’s take a deeper dive into these two products.

What is Critical Illness Insurance?

Critical Illness is designed to help you recover financially from an illness.  If you survive 30 days after being diagnosed the one-time tax-free lump sum payment will be made directly to you to help with any treatment or missed time at work.  How often do you hear stories about loved ones getting diagnosed with Cancer and having to miss time at work to recover or withdraw funds from their RRSP to help with the ongoing medical cost’s. Unfortunately, these stories are becoming far too common.  This is where Critical Illness insurance can help.  Let’s look at a few of the illnesses that are typically covered in a standard policy.

  • Benign brain tumor
  • Stroke
  • Dementia, including Alzheimer’s disease
  • Heart attack
  • Multiple Sclerosis
  • Motor neuron disease
  • Acquired brain injury
  • Kidney failure
  • Heart valve replacement or repair
  • Loss of limbs

What is Long Term Disability?

A long-term disability is not just a remote possibility.  At anytime an illness could prevent you from working for months or even years.  If you were unable to go to work tomorrow, how would you maintain your current lifestyle?  Your greatest asset is the ability to earn an income and it must be protected.  Disability insurance pays a monthly income based on a formula designed by the insurance provider if you are unable to work due to an injury or illness. A standard LTD policy would have a 120-waiting period with a 66.7% formula of monthly pre taxable earnings. 

Which Product Should I Choose?

At McIver Insurance we may be bias, but the simple answer here is both.  Critical illness insurance bridge’s that gap between long-term disability waiting periods and other government benefits such as unemployment insurance.  Most critical illness plans pay out after 30 days but LTD does not start until 120 days.  With the lump sum payment from critical illness insurance, you greatly reduce the worry for the short term and if you are unable to return to work then Long-Term Disability insurance will provide you that steady income stream to continue to live that lifestyle you are accustomed to.

How Much Does It Cost?

When discussing costs for the above products a variety of factors are involved.  Quotes are determined based on your age, sex, smoking status, coverage amount, duration, job occupation and health history.  If you are looking for personalized advice and some of the best insurance policies in Halifax, Nova Scotia you can trust McIver Insurance for dependable customized insurance products, book a call today to get your free personalized quote.

How Much Life Insurance Do I Need In Canada

How Much Life Insurance Do I Need In Canada?

A financial advisor will recommend every person accumulate financial resources of at least seven to ten times their annual income. The life insurance options and benefits you choose will have an impact on the exact death benefit your loved ones will receive at the time of your demise. 

Different factors like any debts, loans, mortgages, the number of young dependents, and any taxes incurred on the various properties you own will affect the exact life insurance coverage you need. You also need to make sure that you leave your loved ones with enough financial resources to cover your funeral costs. 

How Much Life Insurance Do I Need in Canada?

How much life insurance do I need? This is a question that has no right or wrong answer. A younger individual, with a wife and kids, in the middle of their career, will have different expectations for the life insurance benefits from their life insurance plan in comparison to a retired individual. The accepted guideline is that you have enough life insurance benefits to cover your debts, income, mortgage, and children’s education. It is sometimes also referred to as the DIME formula for life insurance. Let’s have a closer look.

  • Debts: How much total debt is in your name?
  • Income: What is current monthly income? It needs to be replaced by the life insurance benefits for your dependents and survivors to have a successful future. 
  • Mortgage: What is the total amount remaining on your mortgage?
  • Education: How many children do you have? What are the educational expenses your dependents will need to pay in case of your demise?

Let’s get into the details now that you have a rough idea of how much life insurance coverage or the amount of life insurance benefits you need to leave your loved ones. 

Detailed Analysis Of The Exact Amount Of Life Insurance You Need In Canada

As we have described earlier, the exact amount of life insurance you need can be calculated by the DIME formula. Let’s look at each one of these factors in detail.

Debt: 

You need to calculate the total amount of debt you owe to get a good understanding of the requirements for the total life insurance benefits of your life insurance plan. Calculate the total credit card debt you owe taking into consideration the many different lines of credit you have. Take into consideration whether or not you will make major credit purchases in the near future that might have an impact on your total debt. Also, assess the total amount of remaining installment payments you need to make on big-ticket items you have already purchased. 

A practical suggestion to make life easier for your loved ones is to add your funeral costs to your total debt. This way your loved ones will not need to turn to anyone else for your funeral expenses. For example, you have a total debt of $40,000 and funeral costs are $12,000 in your area. Your total debt would look something like this:

Total Debt: $40,000 + $12,000 = $52,000

Income: 

Now we need to assess how long your family will need your financial support based on your current spending patterns. This should also take into consideration the age of any children that will require financial resources to spend on their education. Think of how long it will take all of your children to achieve their final educational qualification. For example, you have an annual salary of $60,000 and you want to financially support your family for the next seven years because this is the time it will take all of them to graduate and become fully independent. 

Total Income: $60,000 X 7 years = $420,000

This means that your life insurance policy benefits need to deliver a total amount of at least $472,000 to be able to pay off debts and manage an income for your family after your death. 

Mortgage: 

What is the remaining amount on your mortgage? You must have life insurance coverage for the total amount remaining on your mortgage. You can even consider adding extra costs for any renovations that might be required which are completely based on your discretion. For example, you have $200,000 remaining on your mortgage and you plan to make renovations worth $15,000 in the near future. 

Total Mortgage: $200,000 + $15,000 = $215,000

This means that the total life insurance benefits payout of your life insurance policy needs to be at least a total worth of $472,000 + $215,000 which is equal to $687,000 in total. 

Education: 

According to the Government of Canada, the yearly and lifetime contribution limits for the Registered Education Savings Plan (RESP) for Canadians is currently $50,000. To receive the maximum payout on an RESP for a single child, you need to make a total contribution of $50,000.  

Education: $50,000

According to the DIME formula, this individual will need total life insurance coverage for an amount of $52,000 + $420,000 + $215,000 + $50,000 = $737,000. This amount will cover the individual’s family expenses for a period of seven years after the individual’s death. 

Conclusion

The traditional method of calculating how much life insurance you need in Canada was to find out the figure that is 10 times your current annual salary. But this has proven to be a completely arbitrary method of calculating the life insurance benefits for an individual. 

Every person has unique possessions, property, and business organizations that can be practically profitable for the people they leave behind. Some of these possessions will automatically increase in value as time progresses. If you are looking for personalized advice and some of the best insurance policies in Halifax, Nova Scotia you can trust McIver Insurance for dependable customized life insurance products. Their professional life insurance underwriters can design a life insurance plan according to your custom requirements based on your exact preferences. 

Another way to conveniently calculate the total amount of life insurance coverage you need is to calculate the amount of money you will make by the time you retire. Make your starting point from the current day and your rate of earnings equal to your current salary. Then make the necessary calculations to calculate the total amount you will earn by the time you retire. This is the total amount of life insurance coverage you need to safeguard your family’s future.

FAQ

What Resources are Available to Help Those Struggling with Suicidal Thoughts?

  1. Talk Suicide Canada If you or someone you know is thinking about suicide, you can call Talk Suicide Canada at 1-833-456-4566. Support is available 24 hours a day, 7 days a week. For residents of Quebec, they can call 1-866-277-3553 or visit suicide.ca. Talk Suicide Canada also provides distress centres and crisis organizations nearest to you. If you’re experiencing gender-based violence, you can access a crisis line in your province or territory.
  2. Wellness Together Canada Wellness Together Canada provides free and confidential mental health and substance use support. To connect with a mental health professional one-on-one, you can call 1-888-668-6810 or text WELLNESS to 686868 for youth, and call 1-866-585-0445 or text WELLNESS to 741741 for adults. They offer different levels of support, including one-on-one counselling, credible articles and information, self-guided courses and programs, and peer support and coaching.
  3. Hope for Wellness Help Line The Hope for Wellness Help Line is available 24 hours a day, 7 days a week to First Nations, Inuit, and Métis Peoples seeking emotional support, crisis intervention, or referrals to community-based services. You can call 1-855-242-3310 (toll-free) or connect to the online Hope for Wellness chat. Support is available in English and French and, by request, in Cree, Ojibway, and Inuktitut.
What Are Typical Life Insurance Premiums In Nova Scotia

What Are The Typical Life Insurance Premiums In Nova Scotia?

It is important to understand what is life insurance in order to correctly analyze different life insurance products and life insurance premiums charged by life insurance companies. 

Life insurance provides a death benefit to the life insurance beneficiary when you pass away. Some types of life insurance policies have cash value while others don’t. Cash value is an amount an insurance company will be liable to pay you if you do ever decide to cancel your life insurance policy. 

The Different Types Of Life Insurance Policies Available In Nova Scotia, Canada

A majority of people believe that there are just two types of life insurance policies available for people in Canada; a term life insurance policy and permanent life policies. However, there are five basic types of life insurance policies and life insurance costs that can vary based on each type of policy. 

Life insurance products have different options and coverage plans that are tailored to cater to the insurance needs of Canadians. Let’s look at some of the pros and cons of the insurance policies that are available to Canadians for life insurance coverage.

1. Term Life Insurance

A term life insurance policy provides life insurance coverage for a select period of time which is referred to as the term of the policy. The life insurance beneficiary will receive a death benefit as a tax-free payment if the policyholder dies while the term life policy is still active. 

A term life insurance policy is made available for many different terms such as 10, 20, 25, or 30 years. Some life insurance companies in Canada allow you to select the period of time you want for the validity of a term life insurance policy.

Life insurance companies let you select the insurance coverage term and the total death benefit for the life insurance beneficiary. This is required to calculate the cost of life insurance and monthly premium payments the beneficially will be obliged to pay to keep the policy active. 

The monthly premium payments stay the same in a term life insurance policy. At the end of the life insurance coverage term, policyholders have the option to convert it into a permanent life insurance policy before reaching a certain age. A term life insurance policy is an affordable and simple way to protect your family in case of an untimely demise. 

2. Permanent Life Insurance

Permanent life insurance (aka whole life insurance) is valid for your entire life and is associated with a cash value. The cash value increases as you make the premium payments of a permanent life insurance policy. You can cash out the insurance coverage based on the total insurance premiums you have deposited for the permanent life insurance policy. This can be helpful especially during retirement. 

The premiums for a permanent life insurance policy are higher because you are covered for your entire life. Some permanent life policies allow the policyholder to take out a loan based on the total insurance premiums deposited. 

The monthly premium payments of a permanent life insurance policy stay the same throughout its coverage. The total death benefit can grow based on the total premium payments that have been made against the life insurance policy. 

3. Limited Pay Permanent Life Insurance 

A limited pay permanent life insurance policy resembles a permanent life insurance policy but for a shorter period of time; often 20 years or less. After you make all of the monthly premium payments for the total life insurance coverage you are entitled to receive a guaranteed payout. No more monthly premiums have to be paid to receive the guaranteed payout. 

These are the most expensive types of life insurance policies because the premium payments are often ‘front loaded’. This means that all expense charges, fees, commissions, and interest costs are subtracted right away from the premiums paid.

4. Universal Life Insurance 

Universal life insurance is similar to permanent life insurance but it also has a long-term investment factor attributed to the policy. The life insurance company provides the policyholder the option to invest the total monthly premium payments into various investment plans for future returns. 

Universal life insurance is the most versatile option for individuals looking for life insurance products with investment benefits other than the death benefit for the life insurance beneficiary. Universal life insurance products require the policyholder to be aware of the investment goals that will be used in coordination with the life insurance policy.

5. Term-To-100 Life Insurance 

Term-to-100 life insurance is permanent life insurance coverage without a cash-out option for the policyholder. This makes the term-to-100 life insurance policy one of the most affordable options for permanent life insurance coverage. 

You can think of this life insurance policy as a combination of a term life policy and a permanent life insurance policy. If you live to see a hundred years you no longer need to pay premiums but you will still have the life insurance coverage. 

Finding The Right Life Insurance Broker in Halifax, NS

A life insurance company can help you choose the right life insurance policy based on your personal needs. Some life insurance companies might require you to take a medical exam before you can apply. 

Some basic factors that affect the cost of life insurance are your age, health, smoking status, gender, profession, and hobbies. Hence, it pays to shop around. Finding the right plan at the best rate can be extremely beneficial for securing your and your family’s financial future. 

What Are Typical Life Insurance Premiums In Nova Scotia?

If you reside in Nova Scotia and are looking for a typical life insurance policy these are a few examples of the average premiums you can expect to pay for each policy type.

  • A 45 year old non smoker male Term policy for 10 years at 500,000 face value  on average cost around $50 a month
  • A 45 year old non smoker male whole life policy payable until the insured passes away 50,000 face value  on average cost around $120 a month
  • A 45 year old non smoker male universal life policy payable until the insured passes away 100,000 face value  on average cost around $115 a month

For the best typical life insurance offers out there, you can Trust the team at McIver Insurance to help you pick the right plan for your goals. With years of experience and a 5-star reputation, they are the best resource for those seeking insurance coverage in Nova Scotia.

Traditional Life Insurance compared to Non-Medical Life Insurance

 Traditional Life Insurance compared to Non-Medical Life Insurance

What is traditional life insurance in Nova Scotia?

Life insurance pays a tax-free lump sum payment to your beneficiary when you pass away.  This can be used for final expenses, income replacement or leaving money for the children’s educational fund.  Life insurance comes in two forms with a variety of product offerings, Term & Permanent life insurance.  These policy offerings can be broken down further into traditional and non-medical life insurance policies in Nova Scotia.  Traditional life insurance means you are applying through a company that has been around for a long time offering the most competitive price point for your age and product selected.  An example would be applying at Manulife Financial for a Term 20 policy.  In applying for this product with a carrier such as Manulife you know you will be getting one of the best prices available if you are approved.  Having said that traditional life insurance also involves more up-front medical underwriting then non-medical life insurance in Nova Scotia.  Traditional life insurance requires a full medical questionnaire, potential blood, urine analysis and in some situation’s doctors’ reports must be completed.  The time frame for approval can range from 1-4 weeks depending on various factors.

What is non-medical life insurance in Nova Scotia?

Non-medical life insurance coverage has exploded in popularity in recent years.  When you are applying for a non-medical policy, this means you must answer a questionnaire and that can range from 10-20 questions and no blood, urine or doctors’ reports are requested.  Non-medical coverage can be a great fit for someone looking to avoid the traditional underwriting requirements.  The convenience of non-medical policies comes at a cost, typically 50-100% more expensive than a traditional life insurance policy for the factors mentioned above.  The reason behind the cost increase is the insurance carrier is completing less underwriting and asking fewer questions then a traditional life insurance carrier which is added risk, added risk typically means a higher premium charge for non-medical policies. 

Two advantages and disadvantages of Traditional coverage

  • You are locking in the best possible price quoted for your future
  • Typically, you have more conversion and flexibility options with a traditional life insurance carrier then a non-medical life insurance carrier
  • The main disadvantage is the underwriting requirements, full medical questionnaire, potential blood & urine analysis
  • The uncertainty if you are going to get approved or not

Two advantages and disadvantages of non-medical coverage

  • Main advantage is the avoidance of underwriting requirements such as blood or urine analysis and limited medical questionnaire
  • The speed and convenience knowing you are going to be approved by the company if you can answer NO to the medical questionnaire
  • The main disadvantage is the cost, typically 50% higher premiums for non-medical policies
  • The lack of conversion and flexibility options

 McIver Insurance Recommendation Traditional or Non-Medical

 The most important factor when applying and considering life insurance is to take a good look at your current health and health history.  If you have had recent health issues such as heart attack, cancer, stroke etc. traditional life insurance is not for you at this time.  Non-Medical life insurance with fewer medical questions would be a much better fit.  If you are healthy the recommendation is always to apply for a traditional policy because we want to get you the best price available, the non-medical option can always be a great back up offering.

Life Insurance Halifax, Nova Scotia

Are you looking for a reliable life insurance company in Halifax, Nova Scotia? Look no further than the experts at McIver Insurance. With over 30+ years of combined experience, they will help break down the key differences between the type of policy choices available to you. Don’t get overwhelmed by all the nuances of the different life insurance options, let us help you achieve your long-term goals, and set up the best protection for you and your family.

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