Buying life insurance can really help ease the financial strain on your family in case something happens to you. But it's important to understand if there are any tax rules involved. In Canada, the simple answer is that life insurance payouts are usually not taxed. Let's dive into the details.

Do your loved ones have to pay taxes on life insurance money in Canada?
Generally, the people you name to receive your life insurance money (beneficiaries) don't have to pay income tax on it. This is because life insurance payouts are treated similarly to gifts or inheritances, which are not taxed by the Canada Revenue Agency (CRA). Your beneficiaries can use this money for anything, like replacing lost income or paying off a house, without having to report it as extra income on their taxes.

What if your estate is the beneficiary?
Things get a bit more complicated if your life insurance money goes to your estate, which can happen if you name your estate as the beneficiary or if your named beneficiaries pass away before you. In these cases, the payout might be taxable, and settling the estate could involve extra costs, such as fees for accounting, legal, or executor services.

To avoid these issues, it's usually better to name specific people as beneficiaries on your life insurance policy. This way, you can dodge extra taxes and fees and make the process faster.

What about the cash value of life insurance in Canada?
Some life insurance policies, especially permanent ones, have a cash value that can be used for investment. This is a good option if you're already maxing out your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) contributions every year.

If you decide to cancel your policy and take out the cash value, you'll have to pay taxes on any profit you made. Also, if your beneficiaries get any money from things like interest or dividends from your policy after you die, they will have to pay taxes on it.

If taxes are due, your insurance company will send you a T5 slip, which tells you how much you need to pay the government.

However, you don't need to report the earnings from your policy's cash value as long as they stay within the policy and under the limit set by your insurer (this limit can vary based on your policy and the law). Investments in life insurance policies in Canada grow tax-free, and most policies are not taxed until you withdraw the money.

Are you finding it challenging to secure an affordable life insurance policy due to your age or health? Worry not! Guaranteed Excelsior coverage provides financial protection for everyone, even those with existing health issues.

In this article, we'll take a closer look at final expense plans and how they offer security and peace of mind for you and your family.

Understanding Guaranteed Excelsior Plans & Their Benefits

Regardless of your age or health status, life insurance is essential for safeguarding your loved ones' future. That's why Excelsior plans are ideal for those struggling to get life insurance due to age, health, or other risk factors. They offer an accessible and straightforward way to get the coverage you need, without any complicated requirements.

Excelsior plans require no medical exams or health questions, meaning that your past or present health status won't be an issue. It's why this coverage is ideal for seniors, high-risk individuals, and those with pre-existing medical conditions. In other words, these plans offer financial protection for you and your loved ones, regardless of your circumstances.

Key Advantages of Guaranteed Excelsior Coverage

Final expense plans cater to those who may not qualify for conventional life insurance policies due to health or lifestyle. But they also provide a low-cost, accessible insurance solution with straightforward terms. This can be particularly great for older adults who might find it hard to qualify for more expensive coverage options, as well as anyone weary of fine-print hidden in their policy.

In addition to being more accessible, they are also incredibly versatile. These policies can cover funeral costs, final bills, and other end-of-life expenses. Moreover, they provide a death benefit to financially support any loved ones that rely on your income.

Family at funeral covered by their Guaranteed Excelsior plan.

Your Anchor in Financial Stability

Final expense plans provide reliable financial protection for those who do not qualify for standard life insurance policies. With a guaranteed death benefit, low-entry barriers, and affordable premiums, these plans provide long-term protection you can trust.

Older adults who may not qualify for most life insurance policies deserve stable premiums, especially when living on a fixed-income. With a guaranteed Excelsior plan that doesn't break the bank, you ensure your family has complete financial safeguards for their future.

Seniors managing finances with a Guaranteed Excelsior policy.

Unlocking Instant Financial Serenity

Final expense insurance plans are already an excellent choice for those seeking accessible and straightforward financial protection. But in recent years, getting coverage has become even more straightforward. That's because you can now easily apply online. Easy application process, no medical exams — securing financial protection for you and your family has never been simpler.

You can get Excelsior coverage in just a few minutes through an easy online application. Better yet, you no longer need to wait weeks for the underwriting. You can have full same-day protection. Easy online application for Guaranteed Excelsior coverage.

Take Charge of Your Finances with Confidence

Final expense insurance plans provide a powerful tool for taking control of your financial future. Altogether, manageable premiums, guaranteed coverage, and no medical exams, means you can enjoy the benefits of financial security without undue stress.

After all, by choosing a final expense plan, you're making a smart investment in the well-being of your loved ones. Providing them with the financial support they may need helps ensure a brighter future for everyone involved.

Family discussing financial protection through their no-medical life insurance plan.

Conclusion

In summary, Excelsior plans offer financial protection, especially for individuals facing challenges obtaining life insurance due to age, health, or risk factors. With straightforward eligibility and comprehensive coverage, these plans offer vital support for older Canadians and their families.

All things considered, investing in a final expense plan is a smart decision to help protect your loved ones and bring you peace of mind. If you're searching for financial protection and peace of mind, a Excelsior plan may be your best answer. Luckily for you, by reading this article, you're already one step closer to safeguarding your family's future.


Rest Assured – Guaranteed Excelsior Protection is Within Reach

Experience peace of mind knowing your family's financial protection is guaranteed with a final expense plan. Regardless of your health history, or other risk factors, so long as you’re between ages 18 and 74, and have a residence in Canada, you'll qualify for coverage — guaranteed!

Specialty Life commits to providing life insurance benefits for all Canadians, especially those facing challenges in obtaining coverage from the other providers.

Take action today for a more secure tomorrow. Explore our Excelsior plan and give yourself and your family the protection and reassurance you all deserve.

Find the Financial Protection You Need Today!

GET STARTED NOW

The thought of leaving your family financially burdened after you're gone can be worrisome, particularly if you're dealing with health issues or living on a fixed-income. Acceptance-guaranteed Excelsior plans offer worry-free life insurance, regardless of health or lifestyle.

In this blog post, we'll delve into Specialty Life's Excelsior plans, their hassle-free application process, and their key advantages. Let us assist in choosing the perfect plan to support your loved ones regardless of age or health conditions.

So say farewell to your concerns and embrace a secure future for your family! Let's dive in.

Guaranteed Excelsior Plans: The Essentials

With no medical exams or health questions, our Excelsior plans provide retirees easy, guaranteed coverage. Above all, these plans are perfect for retirees searching for financial protection without the stress of extensive underwriting or rejection.

Plus, Canadian residents 18-74 can receive instant approval for up to $50,000 to cover funeral costs and final bills. Moreover, our plans ensure guaranteed coverage until age 100, offering you peace of mind throughout your golden years.

Key Perks of Guaranteed Excelsior Plans by Specialty Life

Our Excelsior plans come with several noteworthy benefits that make them stand out from other life insurance providers:

Simple application process

Fast, straightforward enrolment you can do online — there's no medical exams, health questions, or paperwork. That means you can easily apply online and be done with it in minutes.

Affordable pricing

Premiums depend only on age, gender, and smoking status, making it more cost-effective than other life insurance products by other providers.

Guaranteed acceptance

Age and Canadian residency are the only eligibility requirements, so you can't be denied coverage based on pre-existing health issues.

Lasting protection

Your plan remains in effect until age 100, assuring long-term coverage when it matters most. As a result, you can truly set it, forget it, and enjoy your golden years to their fullest.

Flexible benefits

Your loved ones can use the payout to cover funeral expenses, final bills, or any other financial needs that arise after your passing.

Testimonials Worth Noting: Excelsior Plan Success Stories

Satisfied family benefiting from the Guaranteed Excelsior Plan.

Finding a reliable, affordable, and secure life insurance solution from a company you can trust makes a significant difference in the lives of retirees like you. Of course, who better to share the benefits of working with us as your provider than the many satisfied Canadians who've experienced the benefits firsthand:

Agent was very informative — guided me through the application process and gave great customer service. The plan I have is all I need and very affordable. Thank you!! I will be recommending!!

Glenda

They were very helpful and understanding with me. I am not a rich man and they totally helped a guy like me. I feel better knowing things for the future are taken care.

Broyce

The insurance advisor was very knowledgeable, informative, clear in details, courteous and very patient in answering all my questions. The coverage I got was right for me and very easy to apply for.

Thelma

In truth, these success stories are just a small sample of the difference our Excelsior plans have made for so many Canadians, and counting. We take tremendous pride in providing accessible, affordable, and secure life insurance solutions tailored for retirees like you. Our belief is simple: everyone deserves coverage.

Discover Our Streamlined Process for Instant Protection

Compared to others on the market, our Excelsior plans stand out for their incredibly user-friendly application process. It's designed to give you peace of mind without the headaches typical with the other providers. With us, you can say goodbye to medical exams, health questions, and tedious paperwork. Instead, effortlessly secure your family's financial future right from the comfort of your home!

So how do we achieve this? Our brilliant team has developed cutting-edge AI technology to provide you with the best coverage without any waiting.

But don't worry — you don't need to be a tech-savvy genius!

Rather, our team actively uses this tech in the background to eliminate red tape, streamline underwriting, and ultimately lower your plan's cost. In short, you'll get the perks of advanced tech without ever getting stuck talking to a chatbot! You'll always have real people within reach if ever you need assistance or guidance. Our team loves to help!

Retirees receiving guidance from a helpful life insurance support team.

Making the Decision: Are Guaranteed-Issue Excelsior Plans Right for You?

Making the decision to invest in a guaranteed-issue final expense plan, like any other significant financial choice, requires careful consideration and evaluation of your unique circumstances. These insurance policies provide coverage without the need for an extensive medical examination or underwriting process, making them an ideal solution for individuals facing health issues or those who fear denial due to pre-existing conditions.

By analyzing your personal and financial circumstances, and considering long-term goals, you can confidently determine if a guaranteed-issue final expense plan is the best fit for securing your future peace of mind.

And if you;re still not sure, speak with one of our knowledgeable insurance professional. Our team will answer your questions without pressuring you into a decision.

People over 65 doing research on Guaranteed Excelsior Plans online. Evaluating various coverage options for financial protection.

Conclusion

In summary, guaranteed acceptance life insurance policies, like our no-medical Excelsior plans, offer a simple and economical solution to safeguard your family's financial future, regardless of your age or health status.

That's why these plans are an excellent option for retirees seeking hassle-free approval and comfort regarding their loved ones' financial well-being. This blog post equips you with insights to confidently choose the best Excelsior plan, ensuring a worry-free and fulfilling retirement.


Seize the Moment with a Excelsior Plan by Specialty Life

A Excelsior plan from Specialty Life is the smart choice for effortless life insurance that offers financial security and peace of mind for your family. With no medical exams or health questions, simple online application, and helpful advisors if you need it, getting the protection you need has never been simpler.

Take charge of your family's financial future today!

GET YOUR INSTANT QUOTE NOW

Retirement marks the end of a long career and the start of a new chapter in life, with so many things to do. From staying active to exploring new interests, there is something for everyone when it comes to the next phase in your life!

In this article, we will cover a few ideas to help you make the most of your later life, no matter your financial constraints. That way, you can make sure you make the most of your golden years.

Here are Fun Things to Do for Older Adults in Retirement:

Gardening

One of the most relaxing and rewarding activities you can do is gardening. Gardening is a great way to get outside and get some exercise. Spend some time tending to your plants, and you’ll reap the rewards of your labor. You can grow your own fruits and vegetables, which can save you money on groceries. Planting different vegetables and fruits also helps to diversify your diet, exposing you to new flavors and tastes.

Gardening also helps to bring the beauty of nature into your home. You can choose flowers that will attract butterflies and other wildlife to your garden. You can also pick out herbs and other plants that will give your home a nice aroma.

Adding a few plants can make any indoor or outdoor space comes with many benefits. It makes the space feel inviting and relaxing. Plus, you can use fresh herbs to flavor your meals and make them more enjoyable. Gardening can help you to enjoy nature while providing you with the means to improve your health and wallet.

Gardening is a great new skill to learn as you make your community more beautiful while getting fresh air.
Senior woman potting plant in garden at home.

Travel

Retirement is a great time to travel and see new places. You can plan a road trip, take a cruise, or visit a foreign country. Whether you choose to explore your own backyard or journey to the other side of the world, travel can be a great way to spend your retirement.

Road trips, in particular, are a great way to travel in retirement. You can take your time, see the sights, and discover places you never knew existed. You can plan a weekend getaway, or a longer trip spanning several weeks. With a road trip, the possibilities are endless.

Cruises are another great way to travel in retirement. Cruise ships offer a variety of destinations and amenities, from all-inclusive packages to themed cruises. You can choose a shorter cruise, or a longer voyage that spans multiple days. Cruises provide the perfect opportunity to relax and explore new places.

Finally, visiting a foreign country can be an exciting way to spend retirement. You can plan a multi-week vacation, or a longer trip of several months. Exploring a new country allows you to immerse yourself in a different culture, meet new people, and experience a place like never before.

No matter how you choose to spend your retirement, travel can be one of the best ways to make the most of it. From road trips to cruises to foreign countries, the possibilities are endless. So make a plan, choose a destination, and start exploring the world!

Vacation time can also be a great time to learn a new language (or to teach english as a part-time job).
Group of senior friends posing for selfie as they hike along trail in countryside together.

Photography

Photography is a wonderful way to celebrate your retirement and to capture memories. You can express your creativity by taking photos of your travels, your garden, or your family and friends. With a digital camera, you can quickly and easily share your photos with friends and family. You don't have to be an expert photographer to enjoy the hobby. Amateur photographers can use simple editing software to enhance their photos and create beautiful works of art.

If you're worried you won't have enough money, don't! You don't need expensive equipment to get started. You can find affordable cameras and lenses online or in retail stores. Investing in quality equipment will help you take better photos, but it is not necessary for beginners.

You can also find tutorials online to help you learn the basics of photography, such as composition and lighting. With a bit of practice, you can create stunning photos that will be cherished for years to come.

Visiting National Parks can be a great place to take quality pictures while hiking (and could even become a part-time job for some extra money!)
A senior African-American woman in her 70s enjoying the outdoors, hiking in a park, taking photographs. She is looking upward.

Cooking

Cooking is a fun and rewarding hobby that can also be a great way to entertain friends and family. You can start off by trying out new recipes and develop your skills in the kitchen. Or if you already know some of your favorite dishes, you can practice refining them.

Cooking can be a great way to relax and unwind. With the extra time you have in retirement, you can experiment with different cuisines, master the basics, or just enjoy the process of trying something new. You can also take cooking classes to learn the latest techniques and recipes. Whatever you choose to do, it is sure to be a rewarding and enjoyable experience.

Younger friends and old friends alike can come together over a delicious home-cooked meal.
Asian chinese family chinese new year reunion dinner having traditional dishes at dining table.

Knitting or Crocheting

Knitting and crocheting are both relaxing hobbies that can also be productive. You can make beautiful gifts for friends and family or even start a small business selling your creations. With a bit of practice, you can create almost any item you can imagine. From hats and scarves to sweaters, blankets and more, the possibilities are endless.

Not only are these activities enjoyable, but they help keep your mind sharp. With each stitch and each project, you are challenging and exercising your brain. Plus, the accomplishment of completing a project and seeing the final result can be very rewarding. In addition, knitting and crocheting offer a great opportunity to get together with friends and fellow hobbyists. It’s a wonderful way to stay connected, share your stories and make new friends.

You may be able to find classes or free courses online to get started with knitting.
A little girl sitting on sofa with her grandparents and learning to knit indoors at home.

Painting

Painting can be a great way to express your creativity and make beautiful pieces of art in retirement. You don't have to be an expert to get started, as there are many different tutorials and classes available for all skill levels. If you are just starting out, there are many online tutorials that can help you learn the basics of painting. You can even take a class at your local art supply store or community center to get an introduction to painting and learn more advanced techniques.

No matter what your skill level, there is something for everyone when it comes to painting. You can create stunning pieces of art to show off to your friends and family, or create something meaningful just for yourself. Painting can also be a great way to relax and de-stress after a long day. So if you're looking for a creative outlet in retirement, painting can be a great way to explore your creativity and make some beautiful works of art.

Painting could even become a second career in this new phase of your life.
Senior artist woman drawing at home.

Writing

Writing is an excellent way to express your thoughts and experiences. Retirement is a great time to start a blog or write a book. You can document your journey through retirement or share your life experiences with your family and friends. It can also be beneficial to keep a journal. Writing down your thoughts, feelings, and goals can help you stay focused on what matters to you.

Retirement is a wonderful time to explore new passions. Writing is a great way to do this. Whether you are looking for a way to connect with others, document your journey, or simply release your thoughts, writing can be a fulfilling activity. You can start a blog, write a book, or keep a journal. It’s up to you how you choose to express yourself. Writing can be a great way to stay productive, motivated, and engaged in retirement.

For more things to do in retirement, and in addition to writing, you could also join a book club.
Group of male and female friends, meeting for a book club, where they reading and discuss.

Stay Active

Retirement is the perfect time to focus on physical and mental health. Staying active is key to a healthy retirement, and there are many ways to do this. Going for regular walks or joining a walking group is a great way to stay in shape. If you're looking for something a bit more intense, you could look into joining a local gym and taking classes or using the gym's equipment.

Exercise isn't the only way to be active in retirement. Take up activities that keep your brain healthy, such as reading, puzzles, and games. Doing something that challenges your mind can help prevent cognitive decline and keep your thinking sharp. There are also many online resources and classes available to help you stay mentally active.

No matter what activities you choose, staying active in retirement is essential for both physical and mental health. Incorporating exercise and activities that challenge your mind into your daily routine can help you make the most of your retirement.

Physical health is extra important to maintain. Luckily, there are several leisure activities many retirees love to stay in their best shape.
Smiling female friends rowing boat in lake. Mature women are enjoying boating in forest. They are on vacations.

Metal & Woodworking

Woodworking is a great hobby for those who enjoy working with their hands and creating something from scratch. Whether you’re a beginner or a skilled craftsman, metal and/or woodworking is an activity that can bring hours of enjoyment and satisfaction in retirement.

From furniture to toys to decorative items, there’s no limit to what you can create. You can use plans and patterns to guide your project, or design something entirely of your own. You can even take classes or join a woodworking club to learn more skills and techniques. With the right tools and materials, you can make everything from birdhouses to cabinets to rocking chairs.

Metal and Woodworking are both challenging and rewarding. Not only will it help keep you active, but you’ll also have beautiful items to show off when you’re finished. Plus, you can even sell your creations if you choose to. So don’t be afraid to get your hands dirty in retirement and try woodworking as a hobby.

You could start be like the many small businesses to sell you crafts via an online Etsy shop.
Senior man using an angle grinder to create sculptures out of metal in his art studio.

Spend Time with Family Members

Family is a fundamental part of retirement, and there are many ways to enjoy it. One activity to try when you visit family is researching your family tree. Put your detective skills to work by finding out information about your family history, and even create a family tree.

Another great way to spend time with family in retirement is to mentor young people in your family or community. This is a great way to give back to those coming up in the world, and you can share your hard-earned knowledge and life experience. It can also be a wonderful way to connect with the younger generation and spend quality time with your own family.

Board games are a great way to connect with family of all ages. Try to plan a weekly or monthly session.
African grandfather sitting down with his grandson on his lap, teaching him how to play chess in Canada.

Volunteer & Make New Friends

Retirement is a great time to make meaningful connections with people in your community. Joining clubs centered around your hobbies and interests is a great place to start. Not only will it give you something to do, but you can make friends with people who have similar interests.

Additionally, taking volunteer positions at local charities, animal shelters, or special events is another great way to make extra friends. Social connections are incredibly important for your physical and mental health, so take advantage of the opportunity to form meaningful relationships.

Enrolling in community colleges can also be a great place to meet new people.
Mature student using digital tablet in adult education class.

Conclusion

Whatever your retirement plan, it's the perfect time to pursue activities and adventures that bring true joy, a sense of fulfillment and overall well being.

From engaging in hobbies, exploring new countries, spending time with family, to learning new skills, there are many great opportunities available to seniors that can help them maintain physical and mental health, build new relationships, and enjoy their golden years to the fullest!


Protect Your Loved Ones with a Excelsior Plan

Retirement is about more than just having fun; it’s also about financial planning for the future and leaving a secure legacy for your loved ones.

Taking control of your financial security with a final expense plan is the best way to ensure that your family is taken care of when you’re gone, and give you the peace of mind you need to truly enjoy your retirement.

With the right insurance policy, you can make sure that your loved ones are provided for and your legacy is secure.

Click the button below to get started now.

GET STARTED TODAY

Budgeting in retirement is crucial, especially when you live on a fixed income. It doesn't matter if you retire early or you have a late retirement. With careful retirement planning, you make your nest egg last as long as you need it to.

In this article, we discuss how to stretch your retirement savings in order to make them last longer. We cover budgeting strategies and how to make your money work for you.

Budgeting Tips to Get the Most Out of Your Retirement

Making a budget is an important step to ensure your retirement savings last. In short, when you have a budget and spending plan, you can better track and assess the things you need to pay for in life.

With that said, before we delve into more specific money saving tips, let’s explore how to set up your budget in the first place!

Before we start your education on budgeting for retirement, you need to figure a few things out.

How Do You Start Budgeting for Retirement in Canada?

The first step to take when budgeting for retirement is to estimate your retirement income. This includes all sources of income, such as pensions, government benefits, and investments. Once you know how much income you'll have each month, you can start making a budget.

How Much Retirement Income Do You Need?

There's no one-size-fits-all answer to this question. The amount you need each month depends on factors like your lifestyle, health, tax-costs, and where you live. However, as a general rule of thumb, you can expect to need about 70% of your pre-retirement income.

If you know how much you'll get from your social security, and how much tax you get charged, you can use that to start planning.

How Do You Calculate Retirement Expenses?

Once you have an estimate for your retirement income, you can estimate your retirement expenses.

You'll need to account for out-of-pocket costs like housing, food, health care, tax payments, as well as investment or transportation expenses. Remember to include leisure and entertainment expenses. And, of course, you'll need to account for unexpected expenses.

What is the Biggest Expense in Retirement?

The biggest expense in retirement is often housing. This includes costs like mortgage or rent payments, property taxes, and maintenance. Other significant expenses include food, transportation, and health care.

Traveling in your retirement is expensive but can be a great way to grow an education of the world as you age.

What Expenses Increase When You Retire?

The monthly cost of health insurance premiums often increase in retirement. This is because you'll likely need to spend more of your income on health care than young people. Knowing your family health history is one of the best ways to guess what you might need to pay down the road.

Another common expense that increases in retirement is travel. So long as you have the income, spending time in new places around the world is great personal care, as it helps you feel more fulfilled in life.

What Expenses Decrease During Retirement?

There are a few expenses that tend to decrease during retirement. One is work-related expenses, such as commuting costs, business attire, and income tax. Another is child and family care related expenses, such as education, or your child's wedding.

You also won't have to spend on social security payments or income tax when you receive your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).

How Do I Retire on a Small Retirement Budget?

If you're on a small budget, there are a few things you can do to reduce your monthly expenses and extend your retirement savings.

Here are some tips on how to budget your retirement savings:

1. Review Your Monthly Expenses & Make Changes Where Needed

You'll want to take a close look at your expenses and make changes where necessary. This may include cutting back on non-essential expenses, such as dining out or travel. It's also important to make sure you are not overspending on housing costs.

In short, you'll want to ask yourself, "Does this help me achieve my financial goals?" If the answer is no, it may not be necessary.

You also won't have to spend on social security payments or income tax when you receive your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).

2. Cut Spending: Get More Budgeting Bang from Your Retirement Bucks

One of the best ways to make your retirement savings last longer is to live below your means. This means spending less than you earn from your pension and saving the difference. When you live frugally, you have more money to live your best possible retirement life.

For seniors who've fully paid their mortgage, downsizing to a smaller dwelling can save a lot of money on things like property taxes, utilities, and maintenance. Since you don't need to go to work, try relocating to a walkable or bikeable neighbourhood. You won't have car payments, and you'll get exercise while meeting people in your community.

You can reduce the taxes you pay, whether property tax or retail sales tax, by reassessing your spending habits.

3. Give Your Future Certainty: Get a Excelsior Plan

Excelsior life insurance can help your loved ones cover the cost of final expenses, like your funeral and outstanding medical bills. It is a really good idea to get one of these personal insurance plans, especially if you have debt in your retirement years.

That's because these plans ensure your spouse and family won't inherit your debt (or its rising interest rates) in order to pay for your final expenses. Your benefits could even be used to make charitable donations on your behalf!

At the end of the day, life insurance gives your future the certainty needed to fully enjoy retirement life.

You can reduce the taxes you pay, whether property tax or retail sales tax, by reassessing your spending habits.

How to Maximize Your Pension Income When Budgeting for Retirement

Pensions don't always pay us what we need for spending cash. Here are some ways you can increase the cash you have to spend on what's important to you in life.

Start a Business or Get a Part-Time Job

With all of the extra time you might have, starting a small business can be a great way to generate income. However, keep in mind new businesses mean new expenses, and new expenses will affect your income and savings. The last thing you'd want is to spend all of the nest eggs saved in your retirement accounts!

That's why another way to bring in some extra cash is to get a part-time job, whether it’s working in a retail setting, food service, or even part-time for your old employer (That is, if they were a good employer!).

You also won't have to spend on social security payments or income tax when you receive your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).

Use Coupons & Shop Around for Deals

Everyone can save money by using coupons and being strategic about where they shop, but this is especially important for retirees who are living on a fixed-income.

Plus, there are often a lot of free or low-cost services and activities available to Canadian seniors, so take advantage of them!

Join a Seniors’ Club or Group

Clubs and groups for seniors often offer discounted rates on things like travel, education, and recreation, so this is a great way to save cash while also meeting people in your community.

Find out if your community has senior gym memberships. Not only do gym memberships help you meet people, but staying active is a great way to reduce health care expenses down the road.

One of the biggest factors for improving your life in retirement is getting exercise and meeting people in your community.

Make Your Own Entertainment

Instead of going out and spending too much of your budget on entertainment, stay home and find ways to have fun for free or very cheap. For example, try calling up some old friends to have a karaoke night.

Another example, reduce your monthly expenses by switching from cable to streaming services.

Live with Others

If you have extra space in their home, you may want to consider taking in a lodger or renting out a room. This can help offset some of the costs of living alone while providing you with a bit of company.

Plus, investing in your home by building a secondary dwelling can significantly raise the total amount of your home's value!

You can reduce the taxes you pay, whether property tax or retail sales tax, by reassessing your spending habits.

Conclusion? Budgeting Your Retirement Savings is Simple!

Creating a retirement budget is an important process that will help you make the most of your golden years. By estimating your retirement income and expenses, you can develop a plan that will allow you to enjoy your retirement and stretch your savings.

Key Takeaways of Budgeting for Retirement

  • Whether a late or early retirement, budgeting is an essential part of retirement planning
  • Create a budget by looking at the income you expect from your pension, then calculate your expenses
  • Stretch your fixed-income by assessing your spending habits and cutting out what's not important in life
  • Don't be afraid to make big changes like downsizing your home — you'll spend less each month
  • Get life insurance so your spouse and family don't get burdened by your final expenses and debt

Ready to Stretch Your Retirement Savings?

Creating a budget plan for when you retire helps your life savings last as long into the future as possible. A excelsior plan helps you account for the unexpected costs in retirement. That way, you can make your savings last worry-free.

One of our professional advisors is waiting and ready to help you get the insurance coverage you need today!


GET STARTED TODAY

The average funeral cost differs across Canada. However, just like with the rising cost of living, the cost of dying is also going up for Canadians.

In this article, we explore what multiple Canadian funeral directors and other key people in the death-care industry say you can expect to pay for a funeral in Canada in 2022. That way, you can be better prepared to start making arrangements.

Is the Average Funeral Cost Going up in Canada?

The cost of a funeral is indeed going up for Canadians. In 2021 the National Funeral Directors Association held a study that found the median cost of an adult funeral with viewing and burial went up by 6.6% since 2016.

Although those numbers are for services in the US, Canadians are not immune to the price hike either.average funeral cost is going up in Canada.

How Much Money are Funeral Arrangements in Canada?

There are many things to consider when making funeral arrangements. But the first thing to figure out is whether you want a traditional burial, or cremation.

Funeral and Cremation Costs: What Type of Funeral is Cheapest?

Cremation is far more affordable than a traditional burial, that's probably why more and more Canadians are choosing to be cremated.

There are several reasons for cremation being cheaper, but the two biggest reasons are because you don't need to pay for a casket nor burial plot. Moreover, with an urn, you don't need to pay for a hearse to do the transportation. Any vehicle will work, and it can be handled by a loved one.

However, there are still many other funeral expenses outside of choosing between an urn or casket.

burial costs are typically higher than cremation fees

Traditional Funeral Costs

With a traditional burial, you'll pay for the casket, but you'll also pay for transportation. If you decide on an open casket, you'll also need to hire a makeup artist. Finally, you'll pay for the cost to bury, as well as the headstone. Some cemeteries will also ask you to reinforce the burial site.

Casket — $2500

The cost of a casket will be more or less depending on the material you choose. For example, a metal casket costs much more than a wooden one.

Embalming — $800

Though not essential, most funeral homes require this to be done in order to have a viewing.

Cosmetics and Hair Styling — $300

When you go with an open casket, the funeral director has to use a special type of makeup. This makeup is pricier than regular makeup, since it needs to be formulated to apply to skin without body heat.

Hearse and Guest Transportation — $550

The cost of a hearse will be more or less depending on the price of gas. Also consider you might need to arrange transportation for guest between the funeral home and burial plot.

Funeral Home Services — $2300

The funeral home needs to reserve a place to keep the body secure until the viewing or burial services. Moreover, the funeral home may have other overhead expenses that you'll need to cover.

Grave Marker — $2000

The price of your gravestone will also vary by its material, as well as the length of the inscription.

Winter Burial Fee — $100

If it's the winter, expect to pay a little more for the burial. You might even have to pay to store the remains until spring.

the cremation process is less costly than burial costs

Cremation Costs

The average cost of a cremation in Canada is far lower than traditional burials. But keep in mind, you'll still need to pay for the memorial service regardless to the end-of-life option you choose.

Cremation Casket — $1400

This is the casket that holds the body as the ashes are created. It can't be a regular casket, as it can't contain any metal.

Urn — $300

Like a traditional casket, an urn will range in price depending on the materials used.

What are Other Expenses of a Funeral?

Death Certificates — $50

You will need to register the death and get a death certificate in order to claim insurance and settle the estate.

Ceremonies —$1500

If you plan on having a celebration of life or other memorial service, you'll need to rent an event space for guests.

Staffing — $600

In addition to renting a space, you'll need to hire staff such as caterers or custodians.

Flower Arrangements — $600

There's a lot more to getting flowers than just buying the flowers. Each bouquet will need to be supplied and arranged by a professional.

Catering — $500

Food is an important thing to remember when planning an event for many guests. You'll need to pay for the food to be made, but also for it to be transported to the service, as well as its clean-up.

Print Materials — $200

This includes the guest book, and any other booklets or printed material needed for the memorial service.

Obituary Notices — $350

You might need to pay additional costs in order to have the obituary published in the newspaper. This varies by the paper.

Your funeral service may need additional fees paid such as for flower arrangements

What is the Average Funeral Cost for Each Province?

Although the total price you pay varies depending on whether you go with a burial or cremation, it can also vary by province. Here's the median cost for a funeral per province:

  • British Columbia – $1,000 to $12,000
  • Alberta – $4000 to $12,000
  • Saskatchewan – $7,775 to $10,o00
  • Manitoba – $7,000 to $10,000
  • Ontario – $1,500 to $20,000
  • Quebec – $9,000 to $10,000
  • Newfoundland and Labrador – $9,500 to $11,000
  • Nova Scotia – $9,000 to $11,000.
  • New Brunswick – $8,000 to $10,000.
  • Prince Edward Island – $8,000 to $10,000

How Can You Save Money on Average Funeral Cost?

Yes, the funeral or memorial service will be expensive. Moreover, with rising inflation, funeral expenses are rising also. With that said, there are still some ways you can cover funeral costs so they are less of a burden on your loved ones:

Limit Guests at the Main Memorial Services

By keeping the guest list to only close family members, you can hold the celebration of life or memorial services at your home or local church.

Hold the Larger Celebration of Life at a Local Restaurant

Although you may have to pay a small fee when you reserve seats at a restaurant for large parties, it will not be anywhere close to the fees paid to rent an event hall or funeral home.

Have a Pot-Luck Instead of Catering

Food for your guests is important. With that said, you might be able to get away with having the guests bring dishes potluck-style.

Go with Direct Cremation

The cremation fee will always be less than the equivalent burial costs. At the end of the day, it is quite cumbersome to transport and secure a deceased person. Cremated remains enable a lot more flexibility when it comes to transportation.

Compare Average Funeral Cost from Various Death-Care Providers

When funeral planning, shop around! Call various funeral homes in your area to get a sense of their service fees. Then you can make a more informed decision when you start making your arrangements.

Get Excelsior Insurance

We'll touch on this more in the next section, but being prepared ahead of time will dramatically reduce your overhead when the time comes for the funeral ceremony.

Consider funeral insurance in order to cover expenses like the basic services fee

Why is a Life Insurance Policy Important to Lower your Average Funeral Cost?

Although you might know some of these funeral costs, you might be like most Canadians who aren't aware of the total scope of funeral expenses. However at the end of the day, the average funeral costs about the same (if not more) than the average wedding.

That means, ironic as it may sound, a funeral service may be one of the most expensive things you pay for in life!

Also keep in mind, if your family members are left to cover the cost of a funeral, they will likely not be doing so with a lump sum payment. Instead they'd have to take out a loan, which, given rising interest rates, is costlier than ever.

To save this financial burden from hanging over your family, consider getting Excelsior Insurance.

Excelsior insurance pays your loved ones a death benefit to cover funeral costs and other end of life expenses. That means for a modest fee each month, you ensure you don't leave your family with debt, but rather have the fullest celebration of life you deserve.


Key Takeaways

  • The cost of a funeral is expensive but will be more affordable with direct cremation services than burial
  • In addition to the casket or urn and grave marker, you'll need to pay the funeral provider service fees such as flowers, cosmetics, securing the remains, and paying for transportation
  • You'll also need to pay for catering, as well as staffing
  • Funeral prices vary by province
  • You can ensure each expense is covered ahead of time by opening a Excelsiors Plan

The Secret to a Low Cost Funeral? A Excelsiors Policy You Can Trust.

When you eat at a restaurant with your family, your won't walk out and leave them with the bill. So why would you saddle your loved ones with your funeral bill?

By opening up an insurance plan to cover your final arrangements, you eliminate leaving your family members with your debt.

Unlike with other life insurance companies, going with Specialty Life means you never undergo a medical exam nor will you be required to get a doctor report. If you're between 18 and 74 and have a Canadian residence, your application cannot be denied for any reason.

Get a quote now from our helpful team to find out how much you can be saving on your policy!pay


GET YOUR QUOTE NOW

Building your nest egg is crucial to be financially secure long-term. Whether for your retirement savings, your first home purchase, or a rainy day fund, contributing to a financial nest egg provides stability and certainty for your future.

In this article, we'll break down how to fund your nest egg in Canada. We'll show you how to get started, tips to grow your savings, and how to protect what you save for years to come.

What's a Nest Egg, and Why Do You Need One in 2022?

Nest Egg
A sum of cash set aside for a long term financial goal, most often retirement.

It's a safe bet to assume that you—like most working Canadians—will eventually want to retire. Moreover, when you finally do reach that milestone, it's safe to assume that you—like most Canadians—will also want to retain purchasing power well into your sunset years.

That's where your nest egg comes in.

Although you might have a pension to cover the cost of living, it might not be enough to cover all of your expenses. A nest egg gives you an extra cushion of cash to depend on while you earn a fixed-income.

But before you start saving any money, you'll need to make a plan.

But first...

Eggs in a nest as a symbol of cash put into a retirement account to achieve long-term financial goals.

Why Do They Call it a Nest Egg?

The expression originates from 17th-century poultry farmers. Each morning, farmers would set aside a small amount of the eggs their hens laid. Rather than selling these eggs, farmers snuck them into their hens' nests the following night. This was believed to influence each hen into laying more eggs, while preventing them from ever stopping.

In other words, the farmers put aside a small amount of their earnings with the goal of achieving long-term success. This is where the modern use of the term comes from.


How Do You Build a Big Nest Egg for Your Retirement Savings?

Brace yourself for some math up ahead! In this section, we'll breakdown how to start building your nest egg.

Note: If you have a spouse, don't forget to repeat these calculations with their earnings and retirement plan so you can factor in the money you'll both need.

Person with tattoos holden gold foil nest egg investments in their hands as assets to retire on..

Step 1: How Much of a Nest Egg Will You Need?

  1. Choose the age you want to retire. For most Canadians, this is 65.
  2. Using your current annual earnings as reference, ask yourself how much money you think you'll need to live comfortably at that age.Keep in mind: Although you might not have to make mortgage payments at that point, you might have other expenses you don't presently have like medical bills. To adjust for this uncertainty, give yourself an annual income range of + or - $10,000.
  3. Next, we'll have to do a bit of math, so grab a pen! Multiply your annual income target by the amount of years between your retirement age and 100.
  4. Now take this amount and subtract the amount of money you should have in your pension by the time you retire. You're left with your nest egg's target value.NOTE: This value is not adjusted for inflation. Don't worry, we'll adjust for that later!

Man in blue shirt counting out coins for his retirement nest egg.

Step 2: How Much Will You Need to Put Away Each Paycheck?

  1. Now subtract your current age from the age you want to retire. This is how long you have to build your nest egg. Remember this amount, as we'll come back to it a few times.
  2. Divide the total value of your nest egg with the amount of years you have left to build it. This leaves you with your benchmark target for annual contributions.
  3. Now take the payment frequency of your income, and use it to find out your regular contributions.
    • Weekly: Divide your benchmark target by 52.
    • Bi-Weekly: Divide your benchmark target by 21.
    • Monthly:Divide your benchmark target by 12.

You now have the amount you'll need to put away each week for the first year.

But we're not done yet! To protect your money from inflation, increase your contributions by 2% every year (...more on inflation in the next section).

Piggy bank sniffs money as if like retirement savings accounts to reserve capital long term

Step 3: Where Should You Invest Your Retirement Account?

Overtime, money loses its value. That's why you can't just stash your savings under your mattress.

Instead, you'll want to invest your money into a savings account, or invest it into other assets that will appreciate by at least 2% over time. Why 2%? That's the target rate of inflation set by the Bank of Canada. In other words, even if annual inflation is a bit more or a bit less, over time it will likely average around 2%.

One thing to keep in mind before you invest is that all assets are different. Some have greater risks than others. Knowing your risk tolerance, depends on how long you have left to save your nest egg.

Less Than 10 Years: Low Risk

Invest in things like bonds and mutual funds; investments that will be worth a modest amount more over time, and  likely won't be worth much less down the road.

More Than 30 Years: High Risk

Your portfolio has more wiggle room when it comes to investing aggressively. Stock investments, and other assets that may go up and down in value in the short term, but are likely to grow in the long term, are more viable investment options for your retirement account.

TIP: If you have a high risk tolerance, but don't want to keep a constant eye on your investment portfolio, ask your investment broker about ETFs and Mutual Funds.

Although the two are different, they both function like their own portfolios—Both independently managed by expert investors. This means they have the potential to grow faster than bonds, while being very low maintenance on your end.

Open bank vault which is often used to secure nest egg money people save to eventually retire with.

Step 4: How Do You Protect Nest Eggs in Canada?

Despite everything you may do to try minimizing any uncertainty around your nest egg investments, sometimes life just happens.

That's why a cornerstone of every financial plan is adequate insurance coverage. To understand how much protection you'll need, ask yourself:

  • Do you have a family history of serious medical conditions that could impact your earnings down the road?
  • Are you your family's sole provider or main source of income? Would losing your income jeopardize your spouse's retirement nest egg?
  • Do you work in a dangerous career where getting hurt could affect your ability to earn an income in the future?

Now go back to the number of years before you'll need to draw from your savings. This will be the duration of coverage you'll want in order to ensure your nest egg reaches the amount needed for retirement time.

A senior couple is able to afford vacation thanks to their retirement investments. They accumulated enough wealth to sit and watch the ocean waves roll into the beach.

Step 5: How Do You to Make Sure Nest Eggs Last a Long Time?

The most vital step to keep your money saved for retirement is simple: Keep it in your retirement account!

...Then again, perhaps that's easier said than done.

One tip is to have your bank put your money into investments automatically as soon as you receive the pay from your employer. That way you never have to think about it and can ignore the account until it's time you need to lay into it.

The other great tip is to consider insurance. With the right insurance, you won't have to dip into your nest egg if you ever need the cash for a medical emergency.

Canadian seniors are happy and smiling because they managed to save a large enough nest egg to retire with success.

Conclusion: You Don't Need to be a Certified Financial Planner to Map Out Your Nest Egg.

With the right plan, and the right protection, you can make sure you'll have enough money for your entire retirement.

Key Takeaways

  • Nest eggs are sums money set aside for a future goal, usually retirement
  • You'll need to save your money as an investment in order to combat inflation
  • The risk tolerance of your investment depends on how long you have left before retirement; shorter = lower risk tolerance, longer = higher risk tolerance.
  • Get insurance coverage for the remaining time before your retirement to protect against the possibility of losing your income
  • Keep your payments steady, and your fingers away from your investments until you're ready for retirement.

Protecting Your Retirement Savings is EASY

Now that you're building your nest egg, you'll want to start looking for your best insurance protection.

Why not start your search with us? Simply fill out our easy questionnaire and get a quote from our expert team in minutes. There are no medical exams, and you are guaranteed to be approved.

Protecting your savings has never been this easy!

Get your free quote now by clicking the big button below:


GET YOUR FREE QUOTE NOW

After years of hard work and dedication, it is finally almost here – your retirement. But, before you finally cross that finish line and are free to relax and enjoy spending more time with your friends and family, there are some valuable financial moves you should be making when planning for retirement. So, let’s take a closer look at some helpful tips to make sure you are financially ready to retire. (more…)