Life Insurance in Canda

Another area often overlooked when making the transition to the US is life insurance. All of your policies should be reviewed with an experienced eye to ensure you have adequate coverage and avoid income and estate tax issues (particularly for U.S. citizens and Green Card holders living in Canada). For example, your life insurance may drop significantly as soon as you take up residency in Canada. How? If you need U$500,000 in the U.S. to cover your needs and you are now living in Canada, now you only have C$400,000 at an 80¢ exchange rate! This may leave you underinsured in covering this same risk exposure in the US. Further, you should review your life insurance needs in Canada, as your cost of living may be different.

For U.S. citizens and Green Card holders living in Canada, many folks are unaware that your Canadian life insurance policy can be included in your estate if not owned correctly. As a result, a $500,000 life insurance policy can be added to your estate and taxed at rates of up to 45%, leaving less for your heirs (see estate planning section for more details). As you can see, the complexities surrounding a simple item such as life insurance is often overlooked. As outlined in the About Us section, we are fee-only advisors and typically recommend the type of policy you need (vs. the type that generates the most commissions). We can also provide you with our network of trusted insurance professionals where you can get life insurance at very competitive rates here in Canada.