Faqs
Frequently Asked Questions!
Explore the Most Frequently Asked Questions: Your Guide to Answers and Clarity.
How much life insurance coverage do I need?
The amount of life insurance coverage you need depends on various factors, such as your income, debts, dependents, future financial goals, and existing assets. It's recommended to assess your needs carefully or consult with a financial advisor to determine the appropriate coverage amount.
Can I change my life insurance policy in the future?
Yes, many life insurance policies offer flexibility and allow you to make changes. You may be able to increase or decrease coverage, add or remove riders, or convert a term policy into a permanent policy, depending on the terms and conditions of your specific policy.
Is travel insurance mandatory for international travel?
Travel insurance is not typically mandatory for international travel; however, some countries may require proof of travel insurance as a condition of entry. Additionally, having travel insurance is highly recommended to protect yourself from potential financial risks during your trip.
Can I get travel insurance if I have pre-existing medical conditions?
Some travel insurance policies offer coverage for pre-existing medical conditions, while others may exclude them. It's important to disclose any pre-existing conditions during the application process and carefully review the policy terms to understand the coverage limitations or exclusions.
Can I withdraw money from my RRSP before retirement?
Yes, you can withdraw money from your RRSP before retirement; however, it will be subject to withholding tax. The amount of tax withheld depends on the amount withdrawn. Additionally, the withdrawal amount will be added to your taxable income for the year.
Can I transfer funds from my RRSP to my spouse's RRSP?
Yes, you can transfer funds from your RRSP to your spouse's RRSP without tax consequences if certain conditions are met. This can be beneficial for income splitting and optimizing retirement savings.
Who can open an RESP?
Anyone, such as parents, grandparents, other relatives, or friends, can open an RESP for a beneficiary (the child who will use the funds for education). The subscriber (the person who opens the RESP) is responsible for managing the plan and making contributions.
Are there contribution limits for RESPs?
While there are no annual contribution limits for RESPs, there is a lifetime contribution limit of $50,000 per beneficiary. However, government grants have maximum annual and lifetime limits, so it's important to be aware of those restrictions.