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Why Should You Use An Insurance Broker To Purchase An Insurance Plan?

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Why Should You Use An Insurance Broker To Purchase An Insurance Plan?

By Canadian LIC, August 23, 2023, 8 Minutes

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As complicated as an insurance policy is, it is too important not to ignore it. It can cause stress and confusion for most individuals when they try to compare several insurance policies and choose the proper coverage. When the time comes to file an insurance claim, the stress automatically creeps back in, asking what if you do not have the required financial support to recover from your loss? An insurance broker takes on many roles. They can use their experience, knowledge, and insight to guide you through the whole insurance process.

Below mentioned are the reasons why you should use a broker when it comes to purchasing an insurance policy:

Insurance Advisor: Always there for you

As experienced insurance brokers in Mississauga, we understand your budget and needs clearly and offer professional support, and that is why so many clients choose to work with us. Our persistence in looking after the well-being of our clients sets us apart from other insurance brokerages. Being licensed professionals, we aim to help clients find the right insurance plan to suit their budget and specific requirements. Whether it is Travel Insurance or Health Insurance you can count on us to provide expert advice that is free and unbiased.

We work for you and only you, and not the insurance company. This means you will have more choices, better rates, better Insurance plans, and, most importantly, a broker that’s on your side even when you want to make an insurance claim.

You can definitely expect more from our Insurance brokers in Mississauga at Canadian LIC because:

  • Offer clients a comprehensive range of insurance products and price comparisons from several insurance Companies.
  • Advises on the Benefits and risks of insurance plans.
  • Explain the policy details concisely and clearly
  • Supports and Guide you when you need to make a claim

Protecting your assets and loved ones

Our insurance brokers in Mississauga have a great deal of expert knowledge that can cover areas that may not be considered insurable. You will also not need to worry about paying a lot as they will ensure you are paying a fair amount for insurance protection and, most importantly, getting an excellent service. If you do not have the patience and time to shop around yourself and find the right coverage you need, you can rely on an insurance broker to find the right plan in the challenging and competitive market. We do not just stop once we have sold you the policy; we monitor the policy terms and notice the market conditions for any fluctuations. If you need to make an insurance claim, we will assist you in the process of the claim and assist you in communicating with insurance companies. We also make sure your needs are presented to the insurance companies to get the most appropriate product at a fair price. Our insurance brokers in Mississauga can offer valuable advice and guidance on how you need to report a claim to insurers. You must have the right insurance coverage as it can provide you with peace of mind. It can be tricky to navigate an insurance plan when buying insurance. With the help of Canadian LIC, you can get solid advice that you can trust.

The importance of excellent and honest insurance advice

To ensure that you and your loved ones are safe and secure against various risks, you must choose a plan and be sure that it covers all your risk requirements. Seeking the advice of an insurance broker is one way of mitigating this risk.

We clearly understand your insurance requirements

Our insurance brokers in Mississauga take the time to get to know their clients better by understanding their individual insurance requirements and identifying the best insurance products to suit their needs. As mentioned earlier, it can be time-consuming to find the right plan, and certain insurance companies do not cater to special insurance requirements. We strive to make sure we find the right insurance protection plan that leaves both parties happy and satisfied. As clients, we can sometimes get lost in the insurance jargon present in the policy documents. With the help of an insurance broker, they will simplify it, ensuring you understand the plan and know what you are purchasing and, most importantly, not making a mistake. All the insurance plans that we try to sell are from top Canadian Insurance Companies whom we know well and trust.

Offering insurance advice that you can trust

Canadian LIC is a reputable insurance brokerage that offers comprehensive insurance solutions to clients all over Mississauga and the surrounding areas. With years of experience in the business, we work with all of the leading insurance companies in Mississauga. Our insurance brokers will negotiate the best rates and terms on your behalf for a wide range of insurance, such as Travel Insurance, Critical Illness Insurance, Life Insurance, Life Insurance with Investment etc. We provide coverage for even some of the most complex Corporation Insurance – Key Person, Etc. We also understand how vital it is to handle claims efficiently and effectively.

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Helping you make a well-informed decision

When it comes to looking after your well-being, we highly recommend that you place your trust in our insurance brokers in Mississauga. It is down to the simple fact that we have access to the right Insurance companies and, secondly, our expertise.

To learn more on insurance broker benefits go to -’ Benefits of Using an Insurance Broker’

Some Pros and cons of Insurance Brokers

Here we bring you some advantages and disadvantages of using insurance brokers in Canada to give you an even clear picture that will help you make a better decision if you still have doubts about whether you should go with one or not.

Insurance Broker Pros

  • You will be able to have a better idea of the market
  • You will receive totally unbiased advice
  • No need to pay any fee. You only have to purchase the policy if you want.
  • Access to discounted prices.
  • You can easily have help and support whenever you want.
  • Policies made as per your specific needs.

Insurance Broker Cons

  • Sometimes the broker might be unknowledgeable about some types of insurance
  • Few brokers are sales-driven. They may sell you something which is not what they were saying.

When you purchase insurance straight from an insurance broker, you will experience certain advantages, making your insurance buying journey super smooth. You will never be able to experience these advantages when buying directly through an insurance company.

If you want to know how to pick the right insurance broker for yourself you can read- How to pick the right Insurance Broker?

What is the cost of buying insurance from an insurance broker?

The cost of buying insurance from an insurance broker in Canada can vary depending on a number of factors, including the type of insurance coverage, the insurance company, the broker’s commission structure, and the particular policy you’re looking for.

Insurance brokers in Canada earn through the commissions paid by their insurance companies. When you buy an insurance policy through an insurance broker, the commission is usually added to your premium. This means that the cost of using a broker’s services is typically included in the overall premium for the insurance policy, and there is no need to pay an extra fee directly to the broker.

Don’t forget that different types of insurance (e.g.home, life, etc.) have different premium structures and commission rates. Also, commission rates for different insurance companies offered to brokers are different, which can affect the final cost of the policy.

It is essential to compare quotes from multiple insurance brokers and companies to get the best coverage and price as per your specific requirements. Insurance brokers can help you navigate the options available, provide expert advice, and assist you in finding the most suitable policy according to your requirements.

It’s best to reach out to a licensed insurance broker in Canada to get an accurate cost for insurance coverage and request a quote tailored to your specific needs and circumstances.

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Some Other Ways of Buying Insurance in Canada

If buying insurance through an insurance broker isn’t something that interests you, then you can purchase the insurance directly through the insurance company, or you can even choose to work with an insurance agent. But the only problem is you might miss the biggest benefits of buying through an insurance broker in Canada, which is the chance to compare different available options in the market and pick the best from them for yourself.

In case you are thinking of working with an insurance agent, then it is best advised to do your proper research to make sure you grab a perfect Insurance coverage for yourself.

Coming to the end

Whatever age you may be at right now, insurance can be an integral part of your financial well-being. If you are still unsure which can be a good plan for you and your family’s protection, it is high time that you start doing proper research and get a good one for yourself.

If whatever knowledge you gathered from here has interested you, then you might have been very sure about the benefits you will enjoy when you buy your insurance through a broker. If you take care of the above-shared steps, then you will be able to have a perfect insurance policy for yourself very soon.

Faq's

You can access various insurance products from different insurance companies that best suit your specific needs with the help of an insurance broker. They are the link between the insurance seeker and the provider to impartially advise you on the best option as per your situation.

They answer and resolve all your insurance queries and take care of the application process. They earn through the commission from the insurance company and, in very rare cases, might ask for any fee for the services they provide.

When a particular insurance company hires a person to sell their insurance products, then that person is an insurance agent. Whereas on the other hand, a broker is a licensed individual between the insurance seller and the seeker. Insurance brokers offer a great variety of choices as they bring insurance products from a marketplace from different organizations.

But the best part is that both of them possess the best knowledge in their fields. Both of them are licensed and earn commissions on the products they sell. The commission to insurance agents is paid to them by their employer. Whenever they accomplish their sales targets by selling more, then they are entitled to gain some additional benefits as well. Whereas the insurance brokers get a commission from the different insurance companies whose insurance products they are able to sell.

It would be great to get an insurance broker for yourself for assistance especially in the case you are new to the world of insurance. Your insurance knowledge will help you decide whether you should go for one or not.

But some people are very well aware of what they need and are well versed in insurance knowledge. These people can purchase directly through the insurance agent or insurance company.

Yes, there may be differences in the cost whether you buy through an insurance broker, agent, or company. But there are more chances of getting discounts when you purchase through brokers.

Also, you will be able to save a few bucks when buying through a broker as they will also bring some alternative options and will help to negotiate with the insurance company directly on your policy. Since there is not any cost involved in buying insurance through a broker, it would be a wiser option to go with them.

Of course, insurance brokers earn only through commission and can’t charge any personal fee. The commission can range from company to company and product to product.

If you still have any more questions left, you can easily schedule an appointment with Canadian LIC today!

First of all, you should finish up your schooling and then pass an exam of licensing if you want to become an insurance broker in Canada. However, the training and requirements for licensing are different in different provinces in Canada.

If you want to gain more knowledge on federal and provincial regulations, then you can visit the Insurance Brokers Association of Canada. This website will help you greatly if you are thinking of becoming an insurance broker. Contact Canadian LIC to get answers regarding Registering into HLLQP.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

What Should You Know About RRSP?

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What Should You Know About RRSP?

By Canadian LIC, October 18, 2023, 10  Minutes

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What Should You Know About RRSP?

Retirement planning is a crucial aspect of financial stability, and in Canada, the Registered Retirement Savings Plan (RRSP) is a cornerstone of retirement savings. An RRSP is a government-approved account designed to help Canadians save for retirement while enjoying tax benefits along the way. If you want to find out everything about RRSPs in Canada, including what they are, how they work, their benefits, contribution limits, investment options, and tips for maximizing your retirement savings.

How Do RRSPs Work?

Here’s a step-by-step overview of how RRSPs work:

  • Contributions: As the account holder, you contribute to your RRSP. These contributions are tax-deductible, meaning they reduce your taxable income for the year in which you make them. This tax deduction can result in a tax refund or lower taxes owing at tax time.
  • Investments: Within your RRSP, you can hold a variety of investments, such as stocks, bonds, mutual funds, GICs (Guaranteed Investment Certificates), and more. Your investments grow tax-deferred, which means you won’t pay tax on the income generated by your investments until you withdraw the funds.
  • Tax-Deferred Growth: As your investments grow over time, you don’t pay annual taxes on the capital gains, dividends, or interest income earned within the RRSP. This tax deferral can lead to significant long-term savings.
  • Withdrawals: You can begin making withdrawals from your RRSP after age 71. Withdrawals are considered taxable income, and you’ll pay income tax at your marginal tax rate when you take money out of the account. It’s important to plan your withdrawals strategically to minimize tax implications.

Read More – RRSP here

Types of RRSPs

  • GICs
  • A mutual fund
  • Securities listed on a designated stock exchange
  • Corporate shares
  • Income Trust funds
  • Foreign currency
  • corporate and governmental savings bonds
  • ETFs, or exchange-traded funds

Spousal RRSP & Common Law RRSP

You can think about creating a spousal or common-law partner RRSP, depending on your marital status, to assist in splitting retirement income more fairly amongst spouses. When a higher-income person makes contributions to an RRSP for their lower-income partner, this type of plan is especially favourable in such a situation. While the other spouse, who is anticipated to be in a lower tax band during retirement, can collect the income and report it on their income tax and benefits return, the primary contributor can take advantage of a tax deduction for their contributions.

Self-directed RRSP

Consider a self-directed RRSP if you want more control over creating and managing your investment portfolio. Depending on your interests, you can buy and sell several kinds of investments using this kind of RRSP. It would be best if you spoke with your financial institution before moving on with this form of RRSP

How does an RRSP work?

A Registered Retirement Savings Plan (RRSP) in Canada is a tax-advantaged investment account designed to help individuals save for retirement. Its fundamental workings are quite straightforward. Canadians can contribute a portion of their annual earned income into their RRSP account, with the contributions being tax-deductible. These contributions, up to a specified limit, reduce the individual’s taxable income for that year. The money deposited into the RRSP can then be invested in a variety of financial instruments, including stocks, bonds, mutual funds, GICs, and more, allowing it to grow tax-free until retirement.

The unique tax benefits of an RRSP become apparent when funds are withdrawn during retirement. At that time, when retirees may be in a lower tax bracket, withdrawals from the RRSP are considered taxable income. This tax-deferral strategy can result in significant long-term savings and is especially beneficial when retirees have a lower annual income in retirement than during their working years.

Overall, an RRSP serves as a powerful tool for Canadians to systematically save for retirement, reduce their annual tax liability, and enjoy the benefits of compound growth on their investments over the long term.

Read More – RRSPs and other registered plans for retirement by the Government of Canada

RRSP vs TFSA

Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are both popular tax-advantaged savings vehicles in Canada, but they serve different purposes and have distinct features. Here’s a comparison of RRSPs and TFSAs to help you understand the key differences:

RRSP (Registered Retirement Savings Plan):

Purpose:

  • Designed primarily for retirement savings. Contributions are tax-deductible, and the funds are intended to be used during retirement.

Contribution Limits:

  • Contribution limits are based on earned income and can vary from year to year. You can find your annual contribution limit on your Notice of Assessment from the Canada Revenue Agency (CRA).

Tax Benefits:

  • Contributions are tax-deductible, reducing your taxable income for the year you make the contribution. This can result in immediate tax savings.
  • Investments within the RRSP grow tax-deferred, meaning you won’t pay taxes on capital gains, dividends, or interest income until you withdraw the funds during retirement.

Withdrawals:

  • Withdrawals from an RRSP are considered taxable income, and you’ll pay income tax on the withdrawn amount. This occurs when you retire and start taking retirement income from your RRSP.

Age Restrictions:

  • Contributions can be made until the end of the year you turn 71, at which point you must convert your RRSP into an income stream, such as a Registered Retirement Income Fund (RRIF) or annuity.

TFSA (Tax-Free Savings Account):

Purpose:

  • Offers flexibility for various savings goals, including short-term and long-term objective

Contribution Limits:

  • Contribution limits are set annually by the government and accumulate over the years, regardless of earned income. As of my last knowledge update in 2021, the total cumulative contribution limit was $75,500 for individuals who were at least 18 years old in 2009.

Tax Benefits:

  • Contributions to a TFSA are not tax-deductible. However, any income generated within the account, such as interest, dividends, and capital gains, is tax-free, even when withdrawn.

Withdrawals:

Age Restrictions:

  • There is no age limit for contributing to a TFSA, and you’re not required to convert it into an income stream at any specific age.

Choosing Between RRSP and TFSA:

The choice between RRSP and TFSA depends on your individual financial goals, income level, and tax situation. Here are some general guidelines:

RRSP

  • Ideal for long-term retirement savings and reducing taxable income in high-earning years.
  • Suited for those expecting to be in a lower tax bracket during retirement.
  • Best when you can maximize your RRSP contribution room.

TFSA

  • Offers flexibility for various savings goals, including emergencies, short-term purchases, and long-term investments.
  • Suitable for individuals with fluctuating incomes or lower tax liability.
  • A good choice when you’ve maximized your RRSP contributions or want to diversify your tax-advantaged savings.

Many Canadians choose to leverage both RRSPs and TFSAs to achieve a balanced approach to saving and investing. Consulting with a financial advisor can help you develop a personalized strategy that aligns with your unique financial circumstances and goals.

RRSP Benefits

RRSPs offer several benefits that make them an attractive retirement savings vehicle:

  • Tax Deductions: Contributions to your RRSP are tax-deductible, which can result in immediate tax savings. This makes it an effective way to reduce your taxable income and potentially receive a tax refund.
  • Tax-Deferred Growth: Investments within your RRSP grow tax-deferred, allowing your savings to compound over time without being eroded by annual taxes. This can lead to substantial long-term gains.
  • Flexible Investment Options: RRSPs offer a wide range of investment options, giving you the flexibility to create a diversified portfolio that suits your risk tolerance and investment goals.
  • Retirement Income: RRSPs are designed to provide a source of income during retirement. You can convert your RRSP into a Registered Retirement Income Fund (RRIF) or purchase an annuity to receive regular payments in retirement.
  • Spousal RRSPs: You can contribute to a Spousal RRSP, which allows you to split retirement income with your spouse and potentially reduce your overall tax liability in retirement.
  • Homeownership: The Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw up to $35,000 from their RRSP (or $70,000 for a couple) to use as a down payment on a home, with a 15-year repayment period.
  • Lifelong Contributions: Unlike other savings accounts, there is no age limit for contributing to an RRSP, allowing you to continue saving for retirement as long as you have earned income.

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How Much Can You Contribute to an RRSP?

The amount you can contribute to a Registered Retirement Savings Plan (RRSP) in Canada is determined by a combination of factors, including your earned income, contribution room, and the annual contribution limits set by the Canada Revenue Agency (CRA).

  • Earned Income: Your RRSP contribution room is primarily based on your earned income from the previous year. Earned income includes employment income, self-employment income, rental income, and certain other sources of income. Passive income, such as investment earnings or capital gains, does not count as earned income for RRSP contribution calculations.
  • Annual Contribution Limits: The CRA sets annual contribution limits that determine the maximum amount you can contribute to your RRSP for the current tax year. As of my last knowledge update in 2021, the contribution limit was 18% of your earned income from the previous year, up to a specified maximum limit. The annual maximum limit was also subject to adjustments for inflation.
  • Notice of Assessment: To know your exact RRSP contribution room for the current year, you can refer to your Notice of Assessment, which you receive after filing your income tax return. It outlines your available contribution room, taking into account any carry-forward room from previous years.
  • Carry-Forward Room: One significant advantage of RRSPs is the ability to carry forward unused contribution rooms from previous years. If you didn’t maximize your RRSP contributions in a given year, the unused room can be carried forward indefinitely. This allows you to catch up on contributions in the future when your financial situation permits.
  • Pension Adjustment (PA): If you are a member of a registered pension plan or have a deferred profit-sharing plan, your RRSP contribution room may be reduced by a pension adjustment (PA). The PA reflects the pension benefits you have earned through your employer’s plan and can affect your available RRSP room.

How to Improve Your RRSP Savings?

To make the most of your RRSP and ensure a comfortable retirement, consider implementing the following strategies:

  • Begin Sooner

The power of compound interest is most effective when you start saving early. Even small, consistent contributions over many years can lead to substantial savings.

  • Contribute Regularly

Set up automatic contributions to your RRSP to ensure you’re consistently saving for retirement. Many employers offer payroll deduction programs that make it easy to contribute regularly.

  • Maximize Tax Deductions

Contribute the maximum allowable amount to your RRSP to maximize your tax deductions. Use your Notice of Assessment to determine your contribution limit, and try to contribute the maximum amount each year.

  • Diversify Your Investments

Diversification can help spread risk and potentially increase your returns. Consider a mix of asset classes, including stocks, bonds, and cash equivalents, to create a well-balanced portfolio.

  • Reinvest Tax Refunds

When you receive a tax refund resulting from your RRSP contributions, consider reinvesting it back into your RRSP. This can boost your savings and take full advantage of the tax benefits.

  • Review and Adjust

Regularly review your RRSP investments and contributions to ensure they align with your financial goals. Adjust your portfolio and strategy as needed based on changing circumstances.

  • Consider Professional Advice

Consult with the best financial advisors, like Canadian LIC best insurance brokers in Canada, specializing in retirement planning. They can help you create a comprehensive retirement strategy, maximize your RRSP, and address any tax or investment concerns.

Common RRSP Myths

It’s crucial to bust common retirement savings myths in order to make informed choices about your RRSP:

Myth 1: You Need to Contribute the Maximum Every Year

While contributing the maximum amount to your RRSP is ideal, it’s not always feasible for everyone. Contributions should align with your financial situation and goals. Prioritize regular, consistent savings over chasing contribution limits.

Myth 2: RRSPs Are Only for Retirement

While the primary purpose of an RRSP is retirement savings, you can use it for other financial goals. For example, the Home Buyers’ Plan (HBP) allows you to withdraw funds from your RRSP for a down payment on your first home.

Myth 3: RRSPs Are Only for High Earners

RRSPs are designed to benefit individuals of all income levels. Even if you have a modest income, contributing to an RRSP can result in tax savings and help you build a more secure retirement.

Myth 4: You Can Only Contribute Cash

RRSPs allow you to hold various types of investments, not just cash. You can invest in stocks, bonds, mutual funds, GICs, and other assets within your RRSP to potentially increase your returns.

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To Sum Up

In Canada, the Registered Retirement Savings Plan (RRSP) is a valuable tool for retirement savings and financial security.

Start early, contribute regularly, and consider professional advice to make the most of your RRSP. Remember that RRSPs are not just for retirement—they can also support other financial goals, such as homeownership. By taking a proactive approach to your RRSP, you can pave the way for a financially secure and comfortable retirement.

Faq's

Here we bring to you some frequently asked questions (FAQs) related to Registered Retirement Savings Plans (RRSPs) in Canada, along with answers to help you understand this retirement savings tool much better:

An RRSP (Registered Retirement Savings Plan) is a tax-advantaged account in Canada designed to help individuals save for retirement. It allows you to contribute money that grows tax-deferred until retirement, at which point you can withdraw funds and potentially pay lower taxes. Contributions to RRSPs are tax-deductible, reducing your taxable income for the year.

Canadian residents with earned income (such as employment income, business income, or rental income) are eligible to open and contribute to an RRSP. There is no age limit for contributing to an RRSP, but there is an age limit for making contributions (age 71) and an age at which you must convert the RRSP into an income stream (also age 71).

Your RRSP contribution limit is based on your earned income and calculated as 18% of your previous year’s earned income, up to a specified maximum limit set by the Canada Revenue Agency (CRA). You can find your contribution limit on your Notice of Assessment from the CRA.

Overcontributions to your RRSP are subject to penalties. The CRA allows a lifetime overcontribution limit of $2,000 without penalties, but any excess contributions are subject to a 1% monthly penalty tax. It’s important to stay within your contribution limit to avoid penalties.

You can withdraw money from your RRSP at any time; however, withdrawals are subject to taxation. It’s generally more tax-efficient to make withdrawals during retirement when your income may be lower, as you will pay income tax on the withdrawn amount.

If you need to make an early withdrawal, you will typically face withholding tax. The withholding tax rate depends on the amount withdrawn and varies by province. Additionally, the withdrawn amount is added to your taxable income for the year, potentially resulting in higher taxes.

Yes, through the Home Buyers’ Plan (HBP), you can withdraw up to $35,000 (or $70,000 for a couple) from your RRSP to use as a down payment on your first home. The withdrawn amount is repayable to your RRSP over a 15-year period.

By the end of the year, you turn 71, you must convert your RRSP into an income stream. You can choose to convert it into a Registered Retirement Income Fund (RRIF), purchase an annuity, or take the entire amount as a taxable lump-sum withdrawal.

In addition to the Home Buyers’ Plan, there is also the Lifelong Learning Plan (LLP), which allows you to withdraw funds from your RRSP to finance full-time training or education for you or your spouse. The LLP has specific rules and repayment requirements.

Yes, RRSPs offer a wide range of investment options, including stocks, bonds, mutual funds, Exchange-Traded Funds (ETFs), Guaranteed Investment Certificates (GICs), and more. You can create a diversified portfolio within your RRSP to suit your risk tolerance and investment goals.

Yes, you can have multiple RRSP accounts with different financial institutions or providers. However, your total contributions across all accounts must not exceed your annual RRSP contribution limit.

Contributions to your RRSP are tax-deductible, meaning they reduce your taxable income for the year you make the contributions. This can result in immediate tax savings. Additionally, investments within your RRSP grow tax-deferred, allowing your savings to compound without annual taxes.

Contributing to an RRSP can still be beneficial if you have a workplace pension plan. It can provide additional retirement savings and tax benefits. Your contribution room is based on your earned income, so having a pension plan may reduce your RRSP contribution room, but it doesn’t eliminate the potential benefits of contributing.

Yes, you can contribute to a Spousal RRSP for your spouse or common-law partner. Contributions to a Spousal RRSP are deducted from your taxable income, but the eventual withdrawals are included in your spouse’s or partner’s taxable income. This can help in income splitting during retirement.

These FAQs provide a fundamental understanding of RRSPs in Canada. However, since tax rules and financial situations vary among individuals, it’s advisable to seek personalized advice from a financial advisor or tax professional when managing your RRSP. You can go with Canadian LIC, as they will be one of your best choices if you are looking for expert insurance brokers in Canada. They can help you optimize your contributions, withdrawals, and overall retirement planning strategy.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

Will the Banks Open Today?

Posted on by canadianlic

Will the Banks Open Today?

By Canadian LIC, July 21, 202, 4 Minutes

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What if you drive to your bank to find out it is closed? Disappointing right? Of course, you would like to be well aware of your bank’s opening hours and holidays beforehand, especially when you have to do tasks like closing your account or making a wire transfer that requires your presence in the bank. 

Even though online banking has made people’s life way easier, certain banking transactions may still require you to visit a bank branch.

So here you will get all the information on the Canadian banks working hours and which banks are open on which holidays so that you can plan your bank trips with ease.

Canadian Banks Working Hours

Usually, Canadian banks are open all throughout the week, that is, all 6 days from Monday to Saturday. But there are also certain exceptions, like CIBC and TD Bank branches, that remain open on Sundays and offer drive-thrus as well. 

You can have access to all ATM services for the entire 24 hours of the day, the entire 7 days of the week, along with drive-through services of certain sites. If the customers want, they can still make use of tellers; however, any ATM in the country or the banking website can provide access to their funds.

The normal bank working hours in Canada are the same as the standard business hours of a normal working day which is mostly between 9 AM to 4 PM or 10 AM to 5 PM. The exact timings vary from location to location and bank to bank. Nonetheless, most Canadian banks on any business day close between 4:00 PM to 7:00 PM.

S.No Bank Day Working Hours
1.) TD bank Monday-Friday 8:00 AM to 6:30 PM
    Saturday 9:00 AM to 2:00 PM
    Sunday 11:00 AM to 3:00 PM
       
2.) Scotiabank Monday to Thursday 9:30 AM to 4:00 PM
    Friday 9:30 AM to 6:00 PM
    Saturday 10 AM- 2 PM
       
3.) Canadian Imperial Bank of Commerce (CIBC) Monday to Friday 8:30 AM to 7:30 PM
    Saturday 9:00 AM – 5:00PM
    Sunday 9:00 AM – 5:00PM
       
4.) National Bank of Canada Monday to Friday 9:00 AM to 6:00 PM
    Saturday 9 AM – 3 PM
       
5.) Tangerine Bank Monday to Friday 9:00 AM to 6:00 PM
    Saturday 11:00 AM to 6:00 PM
    Sunday(Some Branches Open) 12:00 PM to 5:00 PM
6.) Bank of Montreal Mondays to Saturday 8 AM to $ PM

Bank Holidays in Canada in 2023

There are certain dates on which Canadian banks remain closed. Most of the banks in Canada usually remain closed on all Federal Holidays, and some banks remain closed on provincial holidays as well. If you want clarity to your question of ‘Are banks open today?’ or not once and for all, continue reading further, where you will get a good idea about bank holidays in Canada in 2023 

The list of federal and provincial holidays is mentioned below:

List of Federal Holidays in 2023

January 2 , 2023 New Year’s Day
March 17, 2023 St. Patrick’s Day
April 7, 2023 Good Friday
May 22, 2023  Victoria Day
July 3, 2023 Canada Day
September 4, 2023 Labour Day
October 9, 2023 Thanksgiving Day
November 13, 2023 Remembrance Day
December 25, 2023 Christmas Day
December 26, 2023 Boxing Day 

List of Provincial Holidays in 2023

  • Day after New Year’s (January 3 2023): Maily banks in Quebec are closed on this day.
  • Family Day (February 20 2023): In many provinces, the third day of February is a regional statutory holiday known as Family Day. Different provinces celebrate it for different reasons, so they have different names for this holiday. The banks in the provinces of Ontario, Nova Scotia, Alberta, Saskatchewan, and Prince Edward Island are closed on the third Monday of February as per the holiday schedule in British Columbia (BC).
  • Saint Jean Baptiste Day (June 26 2023): This day is observed as a public holiday in Quebec, so all banks remain closed on this day.
  • June Day (June 26  2023): The banks in the provinces of Newfoundland and Labrador are closed on this day as this day is on their provincial bank holiday schedule.
  • Civic Holiday (August 7  2023): This day is celebrated on the first Monday of August. All British Columbia banks, like Ontario, Manitoba, Nova Scotia, Saskatchewan, New Brunswick, and Alberta, remain closed on this day.
  • Regatta Day (August 2  2023): This holiday is observed on the first Wednesday of August. Most banks in the province of Newfoundland and Labrador are closed on this day as it is on their local holiday schedule. The event is postponed to the next suitable day if the weather conditions don’t allow it.

Can you do banking on the day of a bank holiday?

The answer to this is a big yes; even if it is a federal holiday, then also you can very easily do your banking activities. If you cannot take out time to do your banking during the bank’s opening hours, then you only have to make sure to contact the bank’s phone number and use an automated system whenever you are free at your convenience. You will also easily find an Internet banking platform as well as ATMs everywhere around the country. Tellers are also available for all those customers who find in-person transactions more convenient. Hence, it is very important to ensure that your local bank is open on that day, especially if you plan to withdraw a large amount.

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Online Banking

You only require a good internet connection, a laptop, a desktop, or a mobile device in the case of online banking. Tasks from viewing your bank statements, checking your balance, paying your bills, setting up or canceling deposits, and depositing cheques can be easily done through online banking within minutes from anywhere.

ATM machines

You will get 24*7 access to all ATM machines from almost all Canadian banks. ATM also offers the same services as in the case of online banking, as discussed above, like paying your bills, viewing your bank statements, checking your balances, etc. Easily print bank account statements, keep a check on your account balance, or withdraw or deposit your money whenever needed through your bank’s ATM network.

Wrapping It All Up

So by now, you would have got a completely clear answer to your question, “Are banks open today or not?. Isnt it? The best and easiest way to find out whether your bank is open is to check your bank’s website. Usually, all banks in Canada remain working on weekdays and generally on Saturdays as well, even though it is for a limited number of hours. Banks generally remain closed on Sundays or, in the case of National Holidays and, in certain cases, provincial holidays, depending on your bank’s location. If you have any queries related to your banking needs, you can easily contact us directly at 416 543 9000 or 1 844-542-4678. 

We would love to hear from you and provide you with the best possible solution as per your needs.

If you need insurance-related or any other knowledge, you can visit the blog section of our website right away.

 

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Faq's

The most commonly asked questions related to ‘Are the banks open today” are as follows:

Mostly all banks and credit unions remain open just like the usual days in Canada, but you will find federal entities like Canada Post remain closed on Easter Mondays.

Many banks and financial institutions stay open like the usual working day in Canada, as the day before Christmas is not a public holiday. But certain financial institutions like the TD Canada Trust remain closed both on Christmas Eve and Christmas Day. 

Mostly on Saturdays, the banks remain open for less number of hours as compared to the weekdays, and they remain closed on Sundays. But there are a few banks that work on Sundays as well, but just for a few hours, like the CIBC and the TD Bank. It is best to check if your bank is open or not on the weekdays before you step out of your house to visit it.

On public holidays usually, banks in Canada remain closed. Many banks also remain closed on provincial holidays. 

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

Everything You Need to Know About the Canadian Super Visa Insurance

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Everything You Need to Know About the Canadian Super Visa Insurance

By Canadian LIC, May 10, 2022, 5 Minutes

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Are your parents or grandparents looking to travel from their home country to visit your family in Canada? Then, they must purchase super visa insurance to ensure their medical needs are looked after during their stay. It is certainly an exciting time when your parents or grandparents come over to visit their children or grandchildren. But without super visa insurance, that joy can turn to despair and financial stress in the event of an unforeseen medical emergency. This insurance policy makes sure that your parents or grandparents enjoy their stay as much as possible without stressing much about any medical bills. The insurance brokers at Canadian LIC have years of experience in finding the best super visa insurance plans to help match the needs and the budget of their clients. Please do not hesitate to reach out to our team for further information.

A straightforward process that can help you stay much longer

The Canadian government introduced super visa insurance in 2011 to minimize the huge backlog of applications for parents and grandparents to visit their loved ones in the country. A standard visit visa allows parents and grandparents to stay in the country for only six months. But, with super visa insurance, parents and grandparents can stay in the country for up to two years at a time, and they have the option to apply for an extension at the end of the two-year term. Our insurance brokers at Canadian LIC have built an outstanding relationship with various super visa insurance providers across Canada, ensuring clients get the right insurance policy that matches their specific requirements.

Necessary documentation required to apply for super visa insurance

The major requirement needed to apply for super visa insurance is that the applicant must have purchased private medical insurance from any Canadian insurance provider. This is because in the event of a medical emergency during their stay in Canada, they can breathe a sigh of relief knowing that their medical needs are well taken care of. Additionally, the coverage of the insurance plan must be a minimum of $100,000, and it should be valid for at least one year from the date of arrival to the country. The applicant must also submit other documentation, such as a letter from the host, that they will be able to look after their parents or grandparents during their stay and take care of them financially. The best part is that super visa insurance plans can be customized to meet the needs of grandparents or parents who are visiting from their home country. Our insurance brokers can help identify the right super visa insurance plans that are guaranteed to meet their insurance needs.

Stress-free travelling with super visa insurance

Everyone wishes to have a stress-free trip, but life is uncertain, and we need to make sure that our medical needs are taken care of in case of an unfortunate event. From hospitalization to healthcare, including repatriation, all these will be taken care of with super visa insurance. You no longer have to worry financially when an unexpected illness occurs, an accident, or any other kind of medical emergency. It is nerve-wracking already having your parents or grandparents around; with a super visa insurance plan, you can rest assured that no more worries come along your way during their stay in the country.

Affordably priced and convenient

For a super visa insurance plan to be valid, it must meet certain criteria during the application process, such as the minimum coverage, as well as cover their healthcare needs during their stay in Canada. They can have the time of their life during their holiday knowing their medical needs are looked after should something unfortunate happens. The insurance brokers at Canadian LIC understand their clients’ super visa insurance needs clearly and identify plans from several providers to help them make a more well-informed purchase. For further information on super visa insurance, our brokers will be more than happy to answer any queries you may have.

Canadian LIC – Taking care of all your super visa insurance needs

Super visa insurance is provided to applicants for super visas who are primarily your parents or grandparents looking to visit Canada and spend quality time with their dear ones. A super visa insurance policy covers the healthcare needs of non-residents of the country. You must be insured to avoid any financial stress, as medical expenses in Canada are considerably higher. The insurance brokers at Canadian LIC, with their expertise and experience in the insurance industry, have built sound relationships with several insurance providers across the country to help their clients in getting the best super insurance plan that matches not only their specific needs but also their budget. Schedule an appointment with the team at Canadian LIC to find out more about super visa insurance.

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The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

Hiring An Insurance Broker In Brampton- A Comprehensive Guide

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Hiring An Insurance Broker In Brampton- A Comprehensive Guide

By Canadian LIC, April 11, 2022, 8 Minutes

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Since 2020, with the start of the Covid-19 pandemic and now with countries at war and the talks of a possible world war, it’s practical to say that we live in financially volatile times. Especially the last couple of years has shown us what an economic crisis looks like. In these challenging times, it’s always a good idea to have a financial safety net around you and your family in-case if you already don’t have one, ideally in the form of an insurance policy. However, when it comes to insurance policies, there are so many products available in the market that it might become very confusing for you. This is where the role of an insurance broker comes into play. Not only can they help you find the right insurance policy that meets your financial needs, but they also take care of all related legwork and paperwork while you can take care of more serious matters. Consider this blog as a guide on how you can find a professional insurance broker in Brampton.

Understanding what an insurance broker does

Before you go looking out for an insurance broker, you should know what an insurance broker does. An insurance broker’s main job is to find the perfect policy for their clients (you) at the best price possible. Once you hire a broker, they will sit with you and take note of your financial needs. This would be a question and answer round that might include some documents that you would need to present, such as property valuation reports and appraisals. With the necessary information in hand, they will comb through several insurance policies from different companies and present you with some options that might be suitable for you.

Brokers can also share information and provide support, even after the insurance purchase is complete. On behalf of their customers, they can help in coordinating premium payments, request policy changes and make recommendations when the renewal time comes. Some brokers also offer assistance with claims submission and reimbursement, though the actual claim still has to be made directly with the insurance provider. They will do all the hard work while you can relax.

Things to consider when looking for an insurance broker in Brampton

When you’re planning to hire an insurance broker, it’s a good idea to do a fair bit of research first. You can explore the market, ask for references and also read the testimonials part to get better insights (get to know what their previous clients think about their service).

Here are some fundamental pointers that you should keep in mind when you’re searching for an insurance broker:

  • Consider choosing a broker from a reputable insurance brokerage firm who has professional qualifications as well as experience in this line of trade.
  • The insurance policies they offer should offer complete coverage in terms of what you’re looking for.
  • The interest rates for the policy should be affordable.
  • They should be able to answer all your queries as well as tailor the contract as per your need.

Insurance brokers can negotiate the premium for you as well.

What you should know is, that the insurance broker that you’re about to hire may have worked with numerous insurance companies for a long time. This means that they would have a friendly rapport with them, giving them the benefits of securing affordable monthly premium rates for your insurance. If you go into the insurance market on your own, you may not secure the premium rate that you are looking for. With a broker, you can have complete peace of mind. They can compare several policies for you, set a reasonable premium rate and also make sure that all your requirements are covered.

Need advice on your finances? Your insurance broker in Brampton can help.

Insurance brokers always remain impartial. They will educate you about the policy that you want to apply for and show the loopholes as well. With them, you will have access to more insurance companies, and they can share all the knowledge that they have for you to make a well-informed decision. They will give you honest advice based on your needs and budget, but at the end of the day, you will have the final decision.

Do I need to pay the broker?

That is a good question, and in most cases, the answer is no. Insurance brokers in Brampton earn a commission on the policies that they sell. Once the policy is purchased, the insurance company that provides it will pay the broker a commission for bringing them business. This commission is based on the premium amount, and it can be as high as 20%, depending on the type of insurance that was purchased.

However, you should know that some brokers do charge a brokerage fee, which will have to be paid by you. It’s not a common practice, and in many jurisdictions, they aren’t even allowed. Insurance brokers are regulated provincially, so consider checking with your province’s regulatory body if you’re curious about the rules where you live.

Additional services

Alongside offering help, several insurance policies such as:

  • Universal life insurance
  • Critical illness insurance
  • Term and whole life insurance
  • Super Visa Insurance
  • Disability insurance

You can hire an Insurance broker in Brampton for drawing out buy-sell agreements, help with estate planning policies and much more. You can contact them and ask for a free quote and if you like it, then schedule an appointment to start initial discussions.

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Call 1 844-542-4678 to speak to our advisors.

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Conclusion

Know this; your insurance broker will always have your best interests in mind. They will work for you and not the insurance company and can offer a variety of insurance products at a low price. Hire an insurance broker and reap the benefits. We hope you know you have a good idea about how you can hire a professional insurance broker in Brampton. For more exciting reads like this, keep an eye on this space.

The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]