Exempt Policy Status

Tuesday, February 17, 2009

...Thinking of buying permanent insurance?...

here are, broadly speaking, two forms of life insurance: term and permanent. With permanent insurance, sometimes called whole life insurance and other variations, the premiums paid to the insurer create an investment fund for the policyholder. The fund earns investment income and is generally not subject to federal or provincial income tax provided the policy qualifies as an "exempt policy" under the Income Tax Act.

The rules on what is or isn't an exempt policy are complex and best left to the insurer; however, before signing a policy be sure the agreement specifies the insurer will monitor your policy's status and they will ensure it maintains its exempt status.

Why do this? If your policy loses its exempt status it will be subject to income tax and would therefore create a significant tax problem.

Posted 2009/02/17 at 12h06ET in Estate Planning.

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Please, Please, Please, No More

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Checked Off

Sunday, April 11, 2010 ... one To Do is off the list ... I recently completed a task that was completely irrational. It was a fixture on my To-Do list because I always put it off. This week I decided to change that. I dug through my files of sketches and drawings and scanned them into my computer. A simple concept, sure, but tedious and time consuming. I suggest wearing latex gloves or buying hand lotion, but maybe that's a personal choice...Anyway, I now have a folder with 1.2 GBs of JPEG and PSD files. Here's an example from 1992. Right, where's that To-Do list? I want to sketch a line on it. Posted 2010/04/11 at 13h54ET in JamesPiper.com.

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