RRSP Insurance refers to life insurance that protects the value of your Registered Retirement Savings Plan (RRSP) in the event of death. An RRSP is a tax-deferred savings account in Canada designed to help individuals save for retirement. Without RRSP insurance, the value of your RRSP might be subject to taxes and could potentially decrease when passed to beneficiaries.
Benefits of RRSP Insurance:
Tax Protection: RRSP insurance helps reduce or eliminate the tax burden on your RRSP when it’s transferred to your beneficiaries upon your death, ensuring they receive more of your retirement savings.
Estate Planning: It ensures that your RRSP assets go directly to your designated beneficiaries without going through probate, speeding up the transfer process.
Financial Security: RRSP insurance provides peace of mind that your savings will be protected and passed on to your loved ones in a tax-efficient manner.
Flexible Coverage: Like other life insurance products, RRSP insurance can be tailored to fit your financial needs and goals.
RRSP insurance helps maximize the amount your beneficiaries receive from your retirement savings by minimizing taxes and ensuring a smooth transfer of funds.