Let's Break Down the Differences Between the Two:
We know most people will make it to retirement without suffering a major illness but if you are one of the unlucky ones, what happens now?
Would you forego 1% of your annual rate of return to eliminate this risk?
Sure, you could use your savings or take out a loan to cover the unexpected costs, however, both options will have a significant impact on your retirements plans. If you need to access your registered funds, they are taxed in the year you use them. Accessing those funds prior to retirement is not part of your plan.
Pass on that risk to an insurance company. They will take care of the rest with an illness recovery benefit. This is a tax-free lump sum payment to cover any number of unforeseen expenses. No need to submit receipts or to justify the costs.
Keep your retirement goals on track
If you are diagnosed and survive a major illness like cancer, heart attack or stroke, you receive an illness recovery benefit payment. This will keep your retirement goals on track.
Below is an example of a typical 40-Year-old, on track, saving for retirement.
After diagnosis, he/she needs to access 100k from their registered account at age 55 to cover additional costs associated with fighting an unfortunate cancer diagnosis. The impact is significant:
Take 1% of your annual rate of return to pay the premium. Your future self and family will be grateful if the worst happens.
902 940 5927 | Call Us at Atlantic Business Federation for more information or talk with one of our licensed advisors to go over all your options.
If you’re looking to staff up this summer, there’s a program for you!
Applications are open until January 29 for the Canada Summer Jobs subsidy, which can help you to hire young people (15-30 years old).
With COVID-19 still wreaking havoc on small business owners and their staff, the government is specifically prioritizing small businesses affected by the pandemic – so take advantage of the funding available to you!
Canada Summer Jobs 2021
For CSJ 2020, the Department introduced temporary flexibilities to respond to the needs of employers and youth in the context of the COVID-19 pandemic. The program will continue to offer these temporary flexibilities for 2021 in order to continue to support employers and youth. The following temporary flexibilities will be in place for CSJ 2021:
You can submit your application(s) in several ways:
We provide group benefits and services to PEI Business & their valued employees.