Canada fed. budget, changes to insurance

[Dumbdumb]

Sun life summary of budget changes that affect the insurance industry:
https://www.sunlife.ca/files/advisor...ral_budget.pdf

Looks like there's some changes to UL exemption testing coming, or at least some standardizing. And some stuff on group that I didn't read .

[mjb]

Originally Posted by Dumbdumb

Sun life summary of budget changes that affect the insurance industry:
https://www.sunlife.ca/files/advisor...ral_budget.pdf

Looks like there's some changes to UL exemption testing coming, or at least some standardizing. And some stuff on group that I didn't read .

I like the clarification of the rules for UL and standardization across products, which puts company's on more of a level playing field (speaking as someone who works with for a small company). This potentially creates a lot of product development/pricing work for the next couple of years that wasn't initially planned.

I wish they'd ditch the 250 test but there's no mention of it.

[asdfasdf]

The Advisor use only note at the top concerned me a bit.

[Dumbdumb]

Originally Posted by asdfasdf

The Advisor use only note at the top concerned me a bit.

They've dumbed it down. Though why they even tax about exemption testing at that level in an advisor document is beyond me. How many advisors even know what that is. And for those that do, the mechanics have no bearing - that's what computers are for. Still, it's nice of Sun Life to publish such an extensive document.

I spoke to an advisor yesterday, I asked him if he understood present value. He said he did. I didn't believe him.

[asdfasdf]

Originally Posted by Dumbdumb

They've dumbed it down. Though why they even tax about exemption testing at that level in an advisor document is beyond me. How many advisors even know what that is. And for those that do, the mechanics have no bearing - that's what computers are for. Still, it's nice of Sun Life to publish such an extensive document.

I spoke to an advisor yesterday, I asked him if he understood present value. He said he did. I didn't believe him.

Well I know I for sure can calculate the value of presents when they're given to me, why do you think the advisor can't?

[Johnny Deformed]

Making CI premiums a taxable benefit is a bit annoying.

[Johnny Deformed]

The proposed legislation and budget documents do not cover whether offering GSAIP benefits as part of a health and welfare trust (HWT) or employee life and health trust (ELHT) will be taxable to employees. Under current Canada Revenue Agency (CRA) administrative practice, employer contributions to an HWT are not taxable to an employee as long as the trust benefits qualify as a GSAIP, PHSP or group life insurance. The Income Tax Act provides a similar exemption from tax for employer contributions to an ELHT. We expect to hear more about the full implications of this aspect of the amendment before the proposed changes become law.

Huh? Group life is taxable.