Group insurance is a common benefit provided to employees by their employer, union or professional association.
Membership in a group insurance scheme does not usually require a medical examination. However, all eligible persons in a group insurance plan are required to adhere to its terms and pass on the benefits to spouses, minor children and students 25 and under.
No access to a group insurance plan?
Similar insurance products are available for individuals, such as self-employed people. Contact your advisor for more information.
What is a pension plan?
A pension plan is essentially a tax shelter through which an individual can defer paying taxes on money invested for retirement. Any tax payable on contributions and the increase in value of investments is deferred until withdrawal.
Contributions made to this type of plan can be deducted from income when preparing a tax return for the current year, reducing the contributor’s taxable income. The capital and income will be taxed when they are withdrawn.