What Is The Right Age To Purchase Life Insurance?

Deciding when you should purchase life insurance varies by person and the individual’s circumstance. But there are both benefits and drawbacks to purchasing life insurance at certain ages. Although the general consensus is that you should purchase when you are younger, there is no “wrong” age to consider purchasing life insurance.

That’s a good thing. Chances are your family may change or grow at different stages of your life, prompting you to consider purchasing a certain life insurance policy at different ages. Below we take a look at why it is a good idea to have life insurance at any age.

Early Career

By your mid-20’s and into your early 30’s, you probably have had a few professional jobs and some big expenses. Maybe you are also juggling student loan payments and saving for a downpayment for your first home. Since you are at the beginning of your career, your salary may be a bit lower, making any extra expense somewhat difficult to manage. But remember, you are also young and healthy, so premiums will oftentimes be more affordable.

Buying a policy at this age is probably a good idea, especially if your parents or spouse have co-signed any credit cards or loans. If you were to die suddenly, then that debt would be transferred to the co-signer of the loan or credit card. It could be a good idea to purchase a policy to make sure your loved ones are protected.

If you want coverage but don’t think you can afford the cost, consider a term life insurance policy. Term life insurance provides temporary coverage for a certain period of time and can be much more affordable than a permanent life insurance policy. Depending on the policy, this temporary coverage can also be renewed after the term ends as well as converted to a permanent policy regardless of your health at the time.


By the time you are well-established in your career, your financial situation and your family will probably look a little bit different. You will likely have hefty bills, but a career that can support both your mortgage and your children. This probably increases your need for life insurance, considering that your family has expanded.

If you bought term life insurance in your 20s, you may want to consider converting your policy to permanent life insurance. Permanent life insurance is more expensive, but it will pay off in the long run. Whereas term life insurance gets more expensive every time you renew, premiums for a permanent policy are usually set when you purchase a policy and are cheaper when you are younger. This means, if you purchase a policy at 35, by the time you are 55, your premiums will be below market value for a person your age.


Most insurance companies allow the purchase of permanent life insurance up until age 80 or sometimes longer. For term insurance, however, most companies will usually not consider an application from anyone over the age of 75.

It is important to remember, that the older you are the more expensive the policy premiums will be so converting early to permanent insurance is recommended.

The good news is that you may have eliminated many monthly expenses at this point in your life. You may have paid off your mortgage and other loans that you may have accumulated over the years. This means that you may be able to afford a more comprehensive plan, especially if you are in good health.

You should speak to a trusted financial advisor about what type of insurance policy would offer you the financial stability you need as you examine what your needs will be in retirement and as you solidify your estate plan.

What Type Of Insurance Do You Need?

Life insurance is a great way to protect your family and loved ones. It can also be used to protect your business. Keep in mind that some policies are designed with an emphasis on cash value accumulation while others concentrate more on protection.

If you are considering purchasing a plan, reach out to discover what type of policy would best fit your needs.

Is Critical Illness Right for You?

Is Critical Illness Insurance Right for You?

It is probably the most disturbing news an individual can receive during a routine checkup: you have a critical illness and you must receive treatment for it. 

Thankfully, Canadians have access to healthcare and can receive treatment without spending an arm and a leg out of pocket. But what if the doctor’s orders also require taking a significant leave from work, leading to income loss? Or what if the rare but recommended treatment requires expensive travel to a clinic across the continent or even out of the country?  

According to Bankruptcy Canada, getting a serious illness, along with income reduction and job loss are some of the most common reasons Canadians file for bankruptcy. However, Critical Illness Insurance, or commonly called CI, is designed to provide you with tax-free funds to assist you financially in the event that you are diagnosed with a life-threatening illness. 

As financial advisors will tell you, CI covers a number of these illnesses and conditions. A comprehensive policy can insure an individual against more than 20 of these ailments. Typically, the tax-free benefit is paid 30 days after diagnosis or surviving an event, such as heart attack or stroke. Some examples of life-threatening illnesses include cancer, benign brain tumor, Parkinson’s disease, ALS, or coronary artery bypass surgery. 

But why purchase it now?

As a healthy individual, it is hard to imagine receiving such a life-changing diagnosis; however, it is important to remember that developing a critical illness is very common. For example, according to the Canadian Cancer Society, nearly half of all Canadians will develop cancer over the course of their lives. In 2020 alone, there will be 225,800 new cancer cases and while some of those will not be critical, 83,300 of cancer cases this year will result in death. Other critical illnesses, such as heart disease and stroke, are fairly common occurrences as well. 

While these statistics are concerning, advances in medicine and long-term care have increased the survival rates for individuals diagnosed with a critical illness. And according to Statistics Canada, Canadians’ lifespan has increased from 79 to 82 years in the last 20 years. This means that the likelihood for an individual to survive  – and thrive – after a serious illness has also increased. 

Good news, right? 

The reality is that the majority of Canadians are unprepared financially for a life-altering diagnosis. While some Canadians may think they have saved enough money to protect themselves from financial ruin, this may prove not to be the case depending on the type or severity of the illness they were diagnosed with and the lifestyle changes that might be necessary. 

This is what world-renown South African physician, Marius Barnard, discovered after treating critically ill patients, many of whom eventually recovered only to find their finances in a state of disarray. Barnard, who assisted his brother Christiaan in performing the world’s first successful open heart surgery in 1967, also helped develop the world’s first CI policy in 1983 with South African insurance company, Crusader Life.

Barnard traveled the world promoting CI, famously noting that: “People need insurance not only because they are going to die, but because they are going to live.” He also repeatedly noted that patients with little to no financial stress recovered faster and had better health outcomes. 

CI can keep you and your family afloat while you recover. It also protects your retirement, covers your daily expenses, and can help with any unforeseen expenses, such as hiring a home care nurse or traveling to a specific hospital or clinic for treatment. This means that an individual with CI can recover from such an illness without worrying about the toll the illness has taken on their financial stability or the financial wellbeing of their family. 

Questions? Reach out if you are interested in exploring if critical illness insurance is right for you.  

And as always, please feel free to share this article with anyone you think would find it of interest.

Have You Overlooked Assets in Your Estate Planning?

Have You Overlooked Assets in Your Estate Planning?

We have bad news for all the Luddites out there: Technology is here to stay. That means computers and cellphones, and all the software and apps that come with them, are going to become more and more prevalent in the future. 

Technology has infiltrated our daily lives on such a granular level that most of us don’t even realize how much we rely on technology in our day-to-day activities. COVID-19 has made it more difficult to see loved ones in person and even trips to the grocery store carry risks of infection, so many of us have taken to Zoom-happy hours with friends and ordering our groceries online. Whether it is our work meetings, completing tasks and chores, and even social gatherings, technology is everywhere.

How we use technology will continue to expand in the future, but what does that have to do with your estate? Well, as it turns out, a lot. Before we get into the details, let’s discuss what digital assets are. 

Digital assets are essentially anything that has inherent worth that is also in digital form. What establishes their status as an asset is the fact that they come with a “right to use” (e.g. a password). Without a right to use, they are just considered data. Digital assets could include family photos, air miles, hotel rewards, grocery store points, and especially cryptocurrency.

In estate planning, you would keep a list of all your valuable physical assets and you would also consider what would happen to these assets upon your death. Your executor would know these details and would be able to locate these items in your home or safety deposit box and ensure that they are passed on to the right people.  

The same holds true for your digital assets. In your estate plan, you should make a list of all your assets, including your digital assets, and ensure that your executor knows what digital assets you own, where to find them, and how to access them. Remember to include your username and password to all of your accounts on the list, and update that list frequently as your passwords are going to change from time to time.

Additionally, when you are considering your estate and your legacy, you need to decide what you would like to do with your social media profiles. Perhaps you have become a prolific tweeter through your Twitter account, or maybe you use Facebook to remain connected to your long-distance friends and family. Either way, your social media profiles could remain online forever, or they could be deleted per your wishes. Make a decision now about what you would like to do with your social media accounts so that there is no ambiguity regarding how your family should handle them when dealing with your estate. 

Digital assets have been overlooked in the past to the frustration of many estate executors. But as the world continues to evolve, people will rely more and more heavily on technology. This means that people’s wealth and valuables may be held digitally, and therefore, these assets should be included in your estate planning. 

If you are not sure where to start, talk to your trusted executor and write down some notes related to the following information:

  1. What are your digital assets?

  2. Where can your executor find them? 

  3. Update your usernames and passwords regularly. 

  4. Share this information and any updated information with your executor.

As always, please feel free to share this article with anyone you think would find it of interest. 

Don’t Qualify For Traditional Life Insurance? Consider These Options

Don’t Qualify For Traditional Life Insurance? Consider These Options

It’s no secret that traditional life insurance, critical illness insurance and disability insurance offer amazing benefits to those who qualify for the policies. Through these plans, people can protect their families, their businesses, and their livelihoods against the unexpected occurring and disrupting their lives. Unfortunately, however, these policies often don’t extend to people who are facing serious health problems and who may need life insurance the most.

Several years ago, two alternative insurance products were offered to help cover people who may have fallen through the cracks when it comes to life insurance. These two new products fall into one of two insurance product categories: guaranteed issue and simplified issue. 

Guaranteed Issue

Guaranteed issue life insurance is a small whole life insurance policy with no health qualifications. Typically, this type of policy is used for people who suffer from terminal illnesses, who may not have any other options.  

Let’s dig a little deeper to see what benefits and drawbacks you should consider before purchasing a guaranteed issue life insurance policy. 

Policy Benefits

As stated before, there are no medical qualifications for this type of policy, meaning that you do not need to answer any health questions, grant an insurance company access to your medical records, or undergo a medical exam to purchase the policy. This will sound particularly appealing if you have attempted to purchase a life insurance policy in the past but have been denied for a medical reason. 

But here’s where it gets a bit complicated: There is a two-year or three-year waiting period before your beneficiaries can receive the death benefit. This is to prevent people from purchasing this policy when the policyholder’s death is more imminent. The business model could not survive if people paid a few premiums before dying, and then their beneficiaries received a large sum. 

However, if the policyholder does pass on during that initial two-three year period, the insurance company will pay the policy’s beneficiaries the premiums along with approximately 10% interest. 

Policy Drawbacks

Typically, these types of policies are fairly expensive. While it makes sense to purchase this policy if you are in poor health, it is usually the last option for people looking for life insurance. In order to ensure that this is your best option, make sure you don’t qualify for other life insurance or critical illness insurance policies, as some policies that require medical underwriting have lower premiums and offer immediate death benefits.  

Simplified Issue 

This type of insurance can quickly provide coverage and does not require applicants to undergo a medical exam. Instead of going to the doctor or providing medical records, you may have to answer just a few questions related to your health. 

Policy Benefits

People need to be approved for a policy immediately to secure a loan or for a business situation. For whatever reason, if you find yourself needing insurance very quickly, this type of insurance could be for you. 

Policy Drawbacks

These policies are typically not as flexible in terms of their coverage or other options compared to other life insurance options. They also carry higher premiums than other life insurance policies. There are also limitations on the maximum amount of coverage that you can purchase, and typically these policies have a maximum issue amount of $500,000. 

Peace Of Mind 

These two types of life insurance are great options for people who may have underlying health issues and may need a policy quickly. While these policies may be a bit more expensive and have less flexible options than traditional insurance, they are solid alternatives for some people. 

If you feel like you may be a candidate for this type of policy, please reach out today. And as always, feel free to share this article with anyone who may find it of interest.

All in the Family: Estate Planning for Farmers

Many farmers find it difficult to get any interest from their children in continuing to run the farm business – which can cause some complications when developing the best estate plan for farmers looking to retire.

In general, farmers are in an interesting position: they are asset rich due to the increased value of their land but struggle with the increasing costs related to their farming activities.

However, if the farm holds significant value but the children are not interested in working the land, what is a farmer to do?

In some cases, at least one child is interested in farming having grown up in it. If there is only one child interested in taking over the farm, the solution may be simple: gift the farm to the child.

If a child is taking over the business, parents should consider the following:

  • The timing of when the parents will retire.

  • When they will transfer the ownership.

  • Where they will live after retirement.

  • Whether or not they have enough retirement savings without relying on farm income.

If no children are willing to take over the farm business, estate planning and the tax implications become more complicated. However, farmers have some tax planning tools they can use that are unavailable to most people:

  • There is actually a higher exemption from capital gains for both farming and fishing individuals. While qualified small business corporations can claim about $892,218 against capital gains on shares, farmers have an exemption of up to $1 million on either qualified farm property or shares in a qualified farm corporation. This is a really great benefit for sole proprietors or partners in a farming operation.

  • In addition, if a farmer is passing farm property over to a child, they may elect to transfer at the original cost base, rather than the current fair market value. This is essentially passing the gains over to the next generation – much like an estate freeze without all the documentation.

Qualified Farm Property

In order to receive the right exemptions for your situation, it is also beneficial to understand what is considered qualified farm property.

In order to receive the right exemptions for your situation, the property must be used for active farming activities – not rented out or sharecropped.

It is also important to consider who actually owns the farm and if they are actively farming the property. For example, if two spouses own the farm property and farm it then they both get $1 million of exemption. If a spouse is not an owner but is actively farming the property, the current owner can transfer farm property over to the spouse at cost to allow for the use of the exemption. Children may also qualify for this exemption.

The current rules have two important provisions:

  • The owner must be actively farming for two years before selling or gifting the property, and the owner must have earned most of their income from farming during those two years.

  • Any other income earned from other sources has to be significantly less than the total gross income earned from farming.

If this is not the case, then there may be no exemption and no ability to gift the farm to a child at cost.

It is also important to consider what year the farming property was first acquired, as the rules prior to 1987 were significantly different.

The rules after 1987 state that farm property must be used to conduct farming, and it must be owned for two years prior by the individual, spouse, common law partner, children or parent of the individual, a trust or partnership.

However, if a farmer owned the property prior to 1987, then the rules are a bit more generous. For farms acquired prior to 1987, the tax authorities allow you to use the tax benefits if you used the property “principally” for active farming in the year you sold or gifted it, or in at least five years during which the property was owned.

Questions to Outline Future Goals

Finally, probably the most important step a farmer can take in planning their estate is to determine their own goals and ask their children about theirs. Some questions to consider:

  • If the children are interested in farming, can the parents afford to retire without farm income and if not, how many people can the farm support financially?

  • If there are both farming and non-farming children are there other non-farming assets that the parents can leave to the non-farming children to equalize the estate? Would life insurance be useful to provide equalization?

  • Do the parents need the children to “buy” the property, for at least $1 million of it to take advantage of the exemption and get the parents retirement funds? And can the children afford to do that?

Questions? Reach out if you are interested in exploring estate planning options.

Please feel free to share this article with anyone you think would find it of interest.

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Disability Insurance and Small Business: How a Small Business Owner Used Disability Insurance to Stay Afloat While Managing Depression

Sandra ran her own successful insurance agency company for over a decade before it hit her like a ton of bricks – she was chronically depressed and something had to change.

Triggered by a combination of constant stress leading to severe burnout and her 12-year-old son’s recent diagnosis with Type 1 diabetes, Sandra needed some time away from the office to recover and receive treatment. Her depression was absolutely debilitating and could have been devastating to her business and income.

Luckily, Sandra, whose name has been changed to protect her privacy, had purchased two disability insurance policies eight years prior that would help her through such a turbulent time. Sandra worked in the insurance industry and had seen just how important it was to protect yourself from a loss of income in case of a debilitating illness or disease.

“We would see the financial devastation that a disability or an untimely death could cause,” Sandra said. “That had a strong impact on me and I wanted my income and my business to be protected.”

Sandra purchased two disability policies: An office overhead insurance policy in the amount of $10,000 per month that protected her business and covered office expenditures for a period of 18 months. The second policy, personal disability insurance, was an income replacement policy that covered her until age 65 or the length of the disability. It protected her personally by providing her with a $10,000 tax-free, monthly income that allowed her to take the time off work that she needed to receive treatment. Sandra was also happy to learn that she could still spend a small amount of time overseeing her business while continuing to receive the benefits.

“Purchasing the policy gave me peace of mind, knowing what could have happened and ultimately what did happen,” she said.

In general, disability insurance, or commonly referred to as DI, pays a claim due to sickness or accident if the insured is unable to work beyond the normal waiting period. As opposed to critical illness insurance, which is paid out in one lump sum, disability insurance is paid out in monthly installments while the insured remains disabled. The policy that Sandra purchased paid disability benefits until she reached age 65.

After months of treatment, Sandra decided to sell her business and start a new business with her husband: one that allowed her the flexibility to spend more time working on her own needs and the needs of her family. Having disability insurance allowed her to make that transition in her own time and without harming her financially – all while working with qualified medical professionals to get help for her depression.

Sandra’s story is not unique. While most working adults like to believe that they are immune to calamity or harm, unfortunately, that is not the case. According to Statistics Canada, 33% of workers between the ages of 30 and 64 will experience a disability for longer than three months. And most disability claims will come from major illnesses, not accidents.

Which disability insurance policy is best for me?

Working with a financial advisor will help you determine what type of living benefits best fits your needs. But we can outline the basics here to get you started.

Short-term disability insurance: Short-term disability insurance will cover the loss of income due to a temporary illness or accident. The tax-free coverage typically extends between six to 26 weeks, and payments begin after your workplace sick leave expires. Usually, but not always, these plans are provided by employers and typically cover up to 70% of your income.

Long-term disability insurance: As the name implies, long-term disability will cover for a longer period of time depending on your policy. Long-term disability insurance provides monthly payments that commence following the elimination period, which is usually 30 to 90 days after the onset of disability, and can continue up to age 65.

Office Overhead Insurance: Office overhead insurance covers your office expenses if you become disabled. Eligible expenses include rent, utilities and staff salaries.

Group Disability Insurance: This type of disability insurance is typically provided through an employer. If the premiums are paid by the employee, the disability benefit is received tax free.

Questions? Reach out if you are interested in exploring which type of disability insurance would best suit your needs.

As always, please feel free to share this article with anyone you think would find it of interest.

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Who Should Own My Life Insurance?

The planning considerations of where and how to own your life insurance can be varied and sometimes complicated. It is important to remember that who owns the policy, controls the policy. The owner has the right to name a beneficiary, assign the policy, take cash value loans or even cancel or surrender the policy. The insured does not have to consent to these transactions although there are steps available to require his or her permission when necessary. This article focuses on the main, but not all, issues in determining the ownership of a life insurance policy.

When considering the ownership of a life insurance policy on your life, generally there are three options:

  1. Personal or individual ownership

  2. A company that you own or control

  3. A trust

For many Canadians, option #1 is an obvious choice as most do not own a company and wouldn’t have any complex planning considerations to warrant trust ownership. For those, however, that do have a choice, it is important to review the advantages or disadvantages of each. The beneficiary arrangements should be appropriate for the ownership type selected. This is especially true for corporate ownership as the Canadian Revenue Agency may look closely at the ownership/beneficiary structure.

Personal Ownership

Most life insurance policies are owned by the life insured with a named beneficiary, usually a spouse. A major advantage of naming a beneficiary is that the proceeds at death may be protected against the claims of creditors or litigants. A named beneficiary of the “preferred” class (spouse, parent, child, grandchild) also protects any cash values of the policy from similar claims during the lifetime of the insured. Unless there are compelling reasons for it, do not name your estate as your primary beneficiary. Doing so could expose the insurance proceeds to probate fees as well as potential creditor and legal claims.

There are situations where the ownership of the policy may rest with someone other than the insured. This would include an ex-spouse on a policy to fund matrimonial agreements upon death. It could also be for a blended family situation that a spouse would own coverage on the other spouse to protect his or her children from a previous relationship. Naming a successor owner in these situations is recommended.

Company Ownership

If you own a company, you have the choice of having your insurance coverage held in your company. For example, if you are an incorporated professional, you could have your professional corporation own your policy. The same is true if you have a holding company that you own and control. The benefit of doing so is that the dollars used to pay the premiums are “cheaper” for the company than they are for you personally. Life insurance premiums are generally not tax-deductible and are paid with after-tax dollars. If you are paying the premiums out of corporate earned income, dollars taxed corporately at a low rate (11% in B.C. for example) are cheaper than personal dollars taxed at an average rate of 35% or more.

The after-tax cost of the earnings used to pay for the life insurance is a primary reason why corporate ownership is considered for life insurance that otherwise would be required personally. The ability to pay out the death benefit up to the full amount received by the corporation to the surviving spouse or family on a tax-free basis makes this a very attractive option.

There are, however, a few downsides to corporate ownership. The first of these has to do with the calculation of how much of the death benefit received by the corporation can be paid out tax-free out of the Capital Dividend Account (CDA) to the spouse or family member as beneficiaries or surviving shareholders. Depending on when the death occurs, there may be a portion of the death benefit trapped in the corporation and not eligible for CDA payment. In order to pay this amount (which represents the remaining adjusted cost basis of the policy) out of the corporation, an ordinary taxable dividend would have to be declared. This may be considered a small price to pay, however, based on the after-tax cost savings over the years preceding death. Also, if death occurs at normal life expectancy or a short time thereafter, usually all the proceeds are available for a tax-free CDA payment.

Another disadvantage is that, unlike personal ownership with a named preferred beneficiary, the proceeds are not protected from the creditors of the corporation. There are often other factors to consider when considering corporate ownership of life insurance, so it is important to ensure that you receive competent advice in this regard.

Aside from making sure the proceeds of the insurance end up where they are needed the most, if current and future premiums are being paid from personal funds that have already had the taxes paid, then personal ownership may be preferable.

Trust Ownership

A trust arrangement is often used in more complicated situations. For example, if there are multiple beneficiaries who need to be treated differently, or if there are multiple policies, it may be less complicated to use a trust to allow control over the policies and the distribution of the proceeds by the trustee(s).

Another scenario is where the policy is owned by someone other than the life insured who wishes a successor owner to be named if he or she predeceases the insured. An example of this would be a single parent who purchases a Whole Life policy on his or her child and needs to have a successor owner until the child reaches the age of 18. Should the owner name a sibling, a subsequent transfer of the policy to the aunt or uncle could create a taxable policy gain. It would also not be creditor proof as a sibling is not a preferred beneficiary. Use of a Trust to hold the policy until the appropriate time for the child to become owner is a way to avoid this.

An important use of a trust, specifically an Irrevocable Life Insurance Trust is for holding life insurance on the life of a U.S. citizen living in Canada. Since the trust is resident in Canada, the life insured should not be subject to any potential U.S. estate taxes upon death.

Shared Ownership

A planning opportunity exists with a life insurance policy that contains a cash value. The concept behind Shared Ownership is that the individual insured would own and pay for the cash value portion of the policy while the company would own and pay a reasonable cost for the life insurance component. Under this arrangement, the insured would be investing in a tax-deferred life insurance policy while the cost of the insurance is borne by another entity. This increases the internal rate of return on the cash value growth and would be received tax-free by his or her named beneficiary upon death.

Ownership and beneficiary arrangements are very important aspects of life insurance planning. Make sure that you receive the best advice possible in order to achieve the optimum result.

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Stop Living Paycheque to Paycheque and Start Living

We are now living in a gig economy as a result of wage stagnation and increased globalization. While previous generations have usually worked one full-time job, often with a pension plan, today more and more Canadians are working for several different companies as independent contractors.

While this type of work does offer much-needed flexibility for some, it also creates financial instability for millions of Canadians. A recent survey of all working Canadians by the Canadian Payroll Association suggests that 43 percent of workers were living paycheque to paycheque prior to COVID-19. That statistic does not take into account COVID-19’s impact on the workforce.

Regardless of how we got here, the fact is that income volatility is a huge problem for almost half the country. Not knowing when or where your next paycheque is coming from can create a multitude of issues that can have lasting effects on both your health and your finances.

The Effects of Income Volatility?

A survey conducted by the Canadian Payroll Association in 2019 found that 40 percent of the Canadian population are so stressed about finances that it affects their performance at work.

The survey also found that 40 percent of Canadians said they were overwhelmed by the amount of debt they owe. And a whopping 75 percent of Canadians are saving less than 25 percent of their retirement goals.

Knowing that the problem exists is one thing, but if we want to understand the gravity of the situation, we need to know the implications of living paycheque to paycheque. Below are a few of the most substantial effects.

Financial Stress Can lead to Poor Health Outcomes

Living paycheque to paycheque increases financial instability and exacerbates stress, which can impact the cardiovascular system, degrade your mental health and other bodily functions. Worse, it can become a vicious cycle: You become stressed, so your health deteriorates, which causes you more stress, etc.

Conditions like depression and anxiety can go into overdrive when you experience financial instability, meaning that you have to work harder just to make it through each day.

How to Avoid Financial Stress in the Gig Economy

Make a Plan – This plan can be for six months, one year, or 10 years – whatever you want. The plan should include budgets, saving potential and job improvement. If you’re making incremental steps forward, that should help you relieve some anxiety about the future.

Save Anything – Whether it is $5 or $500, every dollar counts. You may not think it’s much, but it will add up overtime.

Avoid Accruing More Debt – Although this plan is easier said than done, it is sometimes better to pay less on your debt and save more money so that you don’t borrow more when something unexpected happens.

Invest in your Future – Start investing. Nowadays, there are many different options to consider when you think about investing your money. Whether you are a new or a seasoned investor, it is a good idea to make your money work for you.

As always, please feel free to share this article with anyone you think may find it of interest.

Copyright © 2021 FSB Content Marketing – All Rights Reserved

Extended COVID-19 Federal Emergency Benefits

On Friday, February 19, 2021, Prime Minister Justin Trudeau announced an extension to several of the COVD-19 federal emergency benefits.  The goal of this extension is to support Canadians who are still being financially impacted by the COVID-19 pandemic.

The following benefits are impacted:

  • Canada Recovery Benefit 

  • Canada Recovery Caregiving Benefit

  • Canada Recovery Sickness Benefit 

  • Employment Insurance

Canada Recovery Benefit

The Canada Recovery Benefit (CRB) provides income support to anyone who is:

  • Employed or self-employed, but not entitled to Employment Insurance (EI) benefits.

  • Has had their income reduced by at least 50 percent due to COVID-19. 

You can receive up to $1,000 ($900 after taxes withheld) a week every two weeks for the CRB. The recent changes now allow you to apply for this benefit for a total of 38 weeks – previously the maximum was 26 weeks.  

Canada Recovery Caregiving Benefit

The Canada Recovery Caregiving Benefit (CRCB) helps support people who cannot work because they must supervise a child under 12 or other family members due to COVID-19. For example, a school is closed due to COVID-19 or your child must self-isolate because they have COVID-19.  

You can receive $500 ($450 after taxes withheld) for each 1-week period you claim the CRCB. The recent extension made now allows you to apply for this benefit for a total of 38 weeks instead of the previous 26 weeks. 

Canada Recovery Sickness Benefit

The $500 a week ($450 after taxes) Canada Recovery Sickness Benefit (CRSB) is also getting a boost. If you cannot work because you are sick or need to self-isolate due to COVID-19, you can now apply for this benefit for a total of four weeks. Previously, this benefit would only cover up to two missed weeks of work. 

Employment Insurance 

Finally, the government will also be increasing the amount of time you can claim Employment Insurance (EI) benefits. You will now be able to claim EI for a maximum of 50 weeks – this is an increase of 24 weeks from the previous eligibility maximum.

For full details, go to https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/covid-19-benefits-credits-support-payments.html