CALU Practice Note: Individually owned joint life insurance policies – Tax treatment and best practices
This Practice Note provides guidance to CALU members on the matter of individually owned joint life insurance policies on the death of an owner. We thank CALU’s Tax Advisor, Kevin Wark, and to members Ladelle Baar, Florence Marino and Steve Meldrum for their contributions to this publication. (Members only) download now
CALU Practice Note: Taxable benefit rules and Holdco-Opco insurance arrangements
This Practice Note discusses taxable benefit issues arising from certain corporate-owned life insurance arrangements and outlines best practices for advisors to follow. We extend our thanks to CALU members Florence Marino, Bryan McNulty, David Stevens and Patrick Uzan for their contributions to this publication. (Members only) download now
Leveraging Life Insurance Policies Checklist
This insurance leveraging checklist is intended for advisor use with clients who are approached on more aggressive or complex leveraging structures. The comprehensive checklist identifies questions advisors and clients should consider before proceeding with a leveraged insurance transaction, including the evaluation of potential issues or risks. The checklist provides links to related Practice Notes and other CALU publications as background information. (Members only) download now
CALU Practice Note: Leveraged Life Insurance and Banking Referrals
This Practice Note discusses, through a series of case studies, the federal Bank Act and provincial Insurance Act considerations relating to the referral of clients between banks (and other lending institutions) and insurance advisors. It also includes a discussion of the regulatory implications of “secondary loan” arrangements offered by certain lending institutions.(Members only) download now
CALU Practice Note – Best practices for professional networking arrangements
The CALU Market Practice Committee (MPC) recently considered a client referral arrangement between an accounting firm and insurance advisors which raised potential market practice and regulatory compliance issues. CALU has now developed a Practice Note which discusses a number of legal, regulatory and tax issues relating to client referral arrangements between insurance advisors and accounting firms, as well as setting out best practices for CALU members to follow when contemplating referral arrangements of this nature. (Members only) Download now
CALU Practice Note – Term Riders and short-pay permanent policies
This Practice Note discusses potential concerns with using term riders for the primary purpose of creating short-pay (less than five years) permanent policies. It also shares the steps CALU has taken to develop an industry consensus on how to deal with these concerns, and guidance in terms of illustrating term riders on permanent policies. (Members only) Download the report
CALU Practice Note – Best practices for insured leveraging programs – Part II
This Practice Note (Parts I and II) is designed to provide guidance to CALU members on how to identify appropriate clients for insured leveraging programs and ensure you have the necessary information to guide them and their other professional advisors in making an informed decision before implementation. Each client’s circumstances will of course influence the nature of the information that needs to be provided. Practice Note (Part I), published for CALU Members earlier this year, focused primarily on issues relating to marketing leveraged programs, client communications and disclosure, due diligence on lending arrangements and longer-term management issues. This Practice ...
CALU Practice Note – Best practices for insured leveraging programs – Part I (revised)
In November 2022, a Practice Note on insured leveraged programs (Part I) was released to members. Based on member feedback, this revision clarifies some of the discussion in the section entitled “What insurance products are suitable for leverage programs?”. Should you have any questions please contact Kevin Wark (kwark@calu.com). (Members only) Download now
CALU Practice Note – Revisiting provincial rebating and inducement rules
This new Practice Note revisits one of the marketing practices discussed in the March 2019 Practice Note, and also reviews another marketing practice which may raise concerns with provincial regulators as being a form of policyholder rebate or inducement.
CALU Practice Note – Advisor/client consideration in purchasing foreign life insurance policies
Canadian individuals and private corporations often acquire life insurance policies to meet liquidity needs on death, as well as accumulate capital on a tax-advantaged basis during the lifetime of the insured
