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Insurance and Financial Newsletter June 2020

Basic information about Life Insurance and Covid-19

COVID 19 and Life Insurance

  • Insurance and financial services companies are considered essential.
  • If you need advice or support, we are happy to connect with you over the phone or Zoom video chat.
  • If you already have life insurance, you won’t need to add any exclusive coverage to your existing plan. Life insurance policies cover outbreaks such as COVID-19, so your beneficiaries are entitled to any death benefit.
  • If a covered condition is triggered due to COVID-19, Critical Illness Insurance policies will cover claims, as long as survival period is complete.
  • Disability insurance will pay out for COVID-19 related illnesses, if the waiting period is met.
  • Several of our insurance company partners introduced flexible parameters to allow faster life insurance purchases without requiring in-person medical exams.

3 RESP Tips

  • You probably know the RESP basics. You can earn up to 20% in “core” grants (termed “Canada Education Savings Grants” or CESGs) on your contributions to a maximum lifetime CESG grant total of $7,200 per child. (And more for low-income families in certain provinces.)
  • If you withdraw the money while your kids are in post-secondary education, then “grants” and “income” are taxable in your kids’ hands, which generally means little or no tax if you do it right. Withdrawal of “contributions” is tax-free.
  • More onerous rules (including possible grant clawbacks) apply to take money out after they finish their post-secondary schooling, or if they never attend.

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This information is presented to provide you a quick overview. Information is evolving and changing all the time. We encourage you to call us and clarify any question that you might have.