| CREDITOR PROOF - What does it Mean to Me?
Certain financial instruments (assets) created under the Ontario Insurance Act can be structured to retain a special status that exempts them from seizure by creditors of the owner of such assets. Recent Supreme Court decisions upheld this unique protective status. Financial instruments of assets that fall under this category are all Life Insurance and Annuity products. This would include RRSP, RRIF and Universal Life plans issued by Life Insurance Companies. It also includes unregistered annuity plans like GIAs, GLICs and prescribed and non prescribed annuities.
I don't have creditors! 
May be not yet? On the other hand, if you have or should have professional liability insurance; or Errors & Omissions insurance; or not incorporated you are a prefect candidate for future creditors created by criminal or tort liability. Your life savings can be insulated from these unfortunate circumstances. Call for details.
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GLIC - What is it?
Guaranteed Lifetime Income Certificate (GLIC) is the name we gave this creative system that combines two financial instruments to
1) Guarantee a pre-determined monthly income for life.
2) Guarantee the capital to your estate;
3) Guarantee a significantly higher after tax income than GICs.
4) Allow the flexibility of "creditor proofing" funds.
If you like GICs, you'll love GLICs! Contact us for a quote. TOP
IRP .... What is it?
A creative retirement planning system that compliments RRSP savings. It is of particular interest to Canadians who find that RRSP limits are curtailing their ability to save. This curtailment stems from Pension Plan limit constraints; or the flat RRSP maximum; or your effective tax planning that reduces taxable income to levels that limit RRSP savings. IRP savings levels are independent of RRSP limits.
The investment growth component of an IRP is tax deferred much like an RRSP. The creative feature of an IRP is two fold.
a) It integrates RRSP and IRP savings on a tax deferred basis, and
b) Creates tax free cash flows during retirement. TOP
How do I get more information on a topic?
Complete the inquiry form and mail or fax it to Creative Solutions Insurance Agency Ltd.
Contact us
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How do I get Mortgage, GIC & GIA rates OTHER QUOTES? Contact Creative Solutions Insurance Agency Ltd. by phone or fax. or E-MAIL
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How do I qualify for the best Term Life Insurance Rates in the country?
With the several levels of wellness we can find the best term rate for you through a term rate search engine. Contact us for a quote
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BANK MORTGAGE INSURANCE PLANS -
Are there alternatives?
Advantages - Bank Plans
* convenience - its right there - no hassle.
* It is group insurance so it usually has a low unit cost
* Simplified issue, there are few or no qualification questions
Disadvantages - Banks Plans
* It's a group policy & not portable - you can't take it with you.
* Cost changes - every time you renew or re-negotiate.
* It is discontinued - after mortgage paid off or if house sold
* You los your health privacy .., placing your negotiating
position at a disadvantage.
* It's inflexible - the bank owns it. In the event of death its
not paid to your beneficiary.
Utilizes Post claim Underwriting.
On balance and if practical, it is almost always best to own your own protection policy that you "earmark" or pledge for a specific purpose.
You may change its purpose over course of time. First its mortgage protection, then its collateral for a business start up loan, after which it may become funding instrument for a "buy sell" agreement and last it may be used to pay capital gains or RRSP tax liability. The policy didn't change, its purpose did.
In practical terms its analogous to owning a car versus "daily renting". The cost per rental is cheap, but there are severe restrictions on what you can use it for, how many miles you can put on it or who can drive. On the other hand, if you have a life long need for a car on a semi regular basis its much more cost effective and practical to "own it" outright. Life insurance is the same.
The price of individual term life insurance, especially for healthy non-smokers is becoming very competitive with the bank rates.
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Should I buy Term or Whole Life Insurance? It depends! The oldest life insurance questions there is. For many people the answer is simple and straight forward. One camp swear by term insurance and the other would only buy whole life (also called permanent insurance). The truth is that one is not better than another. You could ask whether summer tires are better than snow tires, or all season. For shorter term needs (i.e. under 20 years) then term is the best. But for needs that will always be there (funeral, capital gains tax, RRIF tax, charitable gifts, leaving a gift, etc) then whole life insurance Term 100 or universal life is the best. Take a look at Term or Whole Life Insurance for a further explanation of choosing term or whole life insurance
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Can someone purchase a life insurance policy on the life of someone else without them knowing? No. The person to be insured must consent and the person buying the policy must be able to demonstrate an insurable interest. The policy owner must demonstrate an economic loss that is real and unexpected. Without these two requirements the life insurance company by law cannot and will not accept the application.
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A family member has died, how can I find out if they had life insurance? It can be a real challenge to find out if a family member had life insurance if they did not tell anyone about it. You should start by looking through all of their papers for any evidence of a life insurance policy. For example, if the family member had life insurance they would have received statements each year and probably would have had regular payments out of their bank account. Find several helpful tips at our Lost Insurance Policy page.
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Do I need to have a medical to buy life insurance? It depends. There are No Medical Exam Life Insurance policies where it is possible to buy coverage without having a medical or submitting to any tests. These policies are generally a bit more expensive or for a smaller amount of coverage.
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Does life insurance cover suicide? Yes, most policies cover suicide after coverage has been in force for two years or longer.
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Can a claim on policy be denied by the insurance company. Yes, there are a few instances where this can happen. In the first two years of the effective date, or the date of a reinstated policy that had previously lapsed, suicide is not covered and if you omitted or misinformed information that would have caused the insurer not to have issued the policy had they know the information. After two years, I the policy was issued on a post claim underwriting basis, otherwise it can only be denied for a fraudulent statement. An example of a fraudulent statement is improperly stipulating your smoking habit.~
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Irrivocable Beneficiary
How the interests of preferred beneficiaries may be protected most effectively is by naming them as irrevocable. Irrevocable beneficiary is an individual designated as beneficiary of an insurance policy, whose interest cannot be revoked without the individual's written consent. In Common Law provinces, the default designation is “revocable”. You must expessedly name someone irrevocable. In Quebec, teh revese is true, the default is “irrevocable” and you must expressedly named them revocable.
When the policy owner makes the beneficiary designation without retaining the right to revoke or change the designation, the beneficiary will be an irrevocable beneficiary. If a beneficiary is designated irrevocable, this prevents the policyowner from changing the beneficiary unless the irrevocable beneficiary gives permission. In addition, a policy owner cannot surrender the policy for cash or obtain a loan on the policy unless the irrevocable beneficiary so permits. In Canada creditor protection of beneficiaries in a preferred class are well established and are more tight if named irrevocable. A detailed description of beneficiaries issues can be found under Beneficiaries. ~
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