While life insurance products have changed over the years to meet the evolving financial protection needs of consumers, the tax rules used to design and price the products have not. This has caused inconsistency between the products and the Canadian insurance companies that sell them.

The federal government has introduced new tax laws, which reflect the fact people are living longer and insurance policies will pay out later, that come into effect on January 1, 2017. New insurance policies issued after that date as well as certain changes made to existing policies after that date will be subject to the new rules. Read more…..