Bindu Indran

What is critical illness insurance? Critical illness insurance is a living benefit insurance policy that pays out a tax-free lump sum if you develop a specified illness, health event, or undergo treatment while under its coverage. This coverage is available for a period of time also known as term length, and you determine it when purchasing the policy. The lump sum payout is also called a living benefit because it does not depend on whether you have recovered or not. Instead... it is paid out while you are living, once it is established you have contracted a specified illness or gone through certain health incidents (e.g, a heart-attack, etc). Why should I get critical illness insurance? Simply put, you get critical illness insurance to give yourself or your loved ones a financial cushion should you contract a serious illness or undergo a serious medical incident. Whereas products like life insurance provide long-term financial support for your loved ones should you pass away; critical illness insurance is intended for you or family to be able to use while you are still alive and hopefully recovering. Now more than ever, critical illnesses are common in Canada. There are over 200,000 cancer diagnoses a year and 50,000 strokes. While survival rates for critical illnesses like these (or others like heart attacks) are increasing, the recovery from them can still be daunting and require massive changes in your lifestyle and day-to-day needs. Canadians are protecting themselves with critical illness insurance to plan for these scenarios, where they may need to take time off to recover, and can use the financial resources to pay for treatment or medical equipment and home-outfitting required in such circumstances How does critical illness insurance work? Critical illness insurance pays out a lump-sum benefit after the diagnosis of one of the conditions covered by the plan, following a survival period of typically 30 days. Different plans and options offer varying amounts and types of coverage, be that monetary ($10,000 to $2.5 million), the conditions covered (from 1 to 25+), the survival period (0-30 days), or the term (a 10-year term to coverage that lasts your lifetime). Lastly, illnesses that are determined not to be terminal, but still debilitating (like heart attack, stroke) might be eligible for a partial payment of up to 25%. With some but not all policies you can make multiple partial claims with varying effects on your eligibility for a full payment further down the road if you do end up contracting a serious illness or ailment. Connect with Bindu Indran @ 647 760 7683 to know more about Critical Illness Insurance.

What Is Life Insurance? Life insurance is financial coverage that pays a specified amount of money to a chosen beneficiary upon the death of the main policy holder. The face value of the insurance policy is paid by the insurer in exchange for regular payments over the insurance term, referred to as premiums. There is a large variety of life insurance policies on the market to meet a wide range of policy holder needs, and choosing the best coverage for your specific situation ...depends on several factors including income, dependents, and additional financial priorities. However, life insurance can be divided into two main categories: permanent life insurance and term life insurance. Permanent life insurance is lifelong and only pays out upon the death of the policy holder. Term life insurance lasts for a set period of time, such as 10, 20, 30 or 100 years, at which time it may mature, or be renewed for a longer term. The policyholder refers to you, the person buying and paying for the insurance coverage. The beneficiary is the person you select to receive the payout from the policy when it matures, also known as the death benefit. Do I Need Life Insurance? There are many ways life insurance can benefit a policy holder, and different policy types exist to fulfill a large range of needs. While some consider life insurance to only be required for those who are married or have children, this is a misconception those who are single or without dependents can also benefit from this kind of coverage. In fact, anyone who requires money to cover their expenses and debts or provide for their loved ones after death is in need of life insurance. Having a life insurance is wise during any times. It will help you and your family to live a worry free life. Connect with Bindu Indran for an affordable quote #647 760 7683

Registered Education Savings Plan Make sure a child in your life has every opportunity with an RESP. Start saving now to help manage the costs of even the highest post-secondary tuition. What is an RESP?... A Registered Education Savings Plan (RESP) is a specialized account sponsored by the Canadian government to encourage saving for a child’s future post-secondary education. An RESP can be opened up for anyone, including your children or grandchildren. RESPs have a maximum lifetime contribution of $50,000 with no yearly contribution limits. In addition to your contributions, the federal government will also contribute 20% annually on the first $2,500 deposited into an RESP until the end of the year in which the child turns 17 through the Canadian Education and Savings Grant program. You may also access thousands of dollars in government grants to a lifetime maximum of $7,200 through the Canada Learning Bond (CLB). You do not get a tax deduction for the money you contribute into an RESP, and any interest earned is not taxed until withdrawn by the student. RESP Options There are RESP options to suit every child’s financial future. Choose between a family plan for more than one child in a single family, or an individual plan for one specific child in your life. Either way, we’ll always make sure you get the right plan to meet your family’s goals. RESP is the most precious gift for your child Depending on your family income, you are eligible for an additional grant. All your investments, grants and interest grow Tax- free until withdrawal. Connect with Bindu Indran @ 647 760 7683

5 reasons to open an RRSP A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, that you use to save for retirement. There are a number of benefits to saving in an RRSP. 1. Contributions are tax deductible You claim your RRSP contribution as a deduction on your tax return. For example, if you’re in the top tax bracket in Ontario, every $1,000 you contribute reduces the tax you pay by approximately $535. And if your income is lower ...in a year, you can carry forward the deduction for your contribution to a future year when your income may be higher. That way, your tax savings are greater when you’re in a higher tax bracket. 2. Savings grow tax free You won’t pay any tax on investment earnings as long as they stay in your RRSP. This tax-free compounding allows your savings to grow faster. 3. You can convert your RRSP to get regular payments when you retire You can transfer your RRSP savings tax free into a RRIF or an annuity when you retire. You’ll pay tax on the regular payments you receive each year but if you’re in a lower tax bracket in retirement, you’ll pay less tax. Make sure your RRSP fits into your overall financial and retirement plan. 4. A spousal RRSP can reduce your combined tax burden If you earn more money than your spouse, you can help build their tax-free savings by contributing to a spousal RRSP. Retirement income will then be split more equally between the 2 of you which may reduce the total amount of tax you pay. Learn more about spousal RRSPs. 5. You can borrow from your RRSP to buy your first home or pay for your education You can take out up to $25,000 for a down payment for your first home under the Home Buyers’ Plan (HBP). You can also take out up to $20,000 to pay education costs for you or your spouse under the Lifelong Learning Plan (LLP). You won’t pay any tax on these withdrawals as long as you pay the money back within the specified time periods. Call @ Bindu Indran 647 760 7683