Personal Finance

Needs For Pension-Unlocking And Whether To Opt Or Not

Opting for a pension instead of asking for the entire amount against your retirement benefits is the best way for supplementing your retirement income. Many times you need the funds because of financial hardships. You may need to unlock the pension because of decreased income, loss of job or for paying off the debts. It may compel you to withdrawal of money from the locked-in account and get it transferred to RRSP that may be accessed at later stages without any hurdles. It is better to seek assistance from the reliable financial advisors to take a viable decision whether or not to go for unlocking a pension. Also introduced as Locked-in Retirement Accounts [LIRA] or Locked-in RRSP, the locked-in pension individuals can have access to their own funds by meeting certain criteria. Those in hard need of money are usually eligible for access to certain part of their locked-in pension funds.

  1. Financial problems – It is usually the financial constraints that compel us to have access to our locked-in-pension funds. It could be low expected income in the forthcoming period of one year, payment of the first and last month’s rent, medical expenses or the arrears of rent or mortgage.
  2. Unlocking 50% through transfer – You may be able to transfer your locked-in pension fund to a Life Income Fund in case you are at least fifty five years old or at the age where you could otherwise be eligible for a pension from the originating plan for pension. Remember, a one-time withdrawal equal to fifty percent of this LIF can be made after transfer to this account. It can be used as income or transfer to the unlocked investment account, e.g. the RRSP.
  3. Small Pension amount after 55th years of age – Application for unlocking a pension can be moved by the individuals that cross the fiftieth year of their age. This is subject to the condition that the total of the locked-in pension should be less than $21,000 or the prescribed amount since prescribed by the concerned states.
  4. Non-residents: A pension can be unlocked by the non-residents of Canada that have passed twenty four months since the date of their departure from the country.
  5. Decreased life expectancy – Persons with shortened life expectancy of two years or less than that may apply for unlocking their pensions.

Just think of the downsides of pension-unlocking before opting for the same. Your retirement income may go down heavily. Penalties for early raising of pension, loss of guaranteed benefits / future guaranteed income, taxation on the income, loss of benefits in respect of your partner or the offspring, loss of health benefits and the costs for unlocking a pension could be some of the financial burdens upon the guys that opt for pension-unlocking. Candidly, pension is the safe option from the creditors in the event of bankruptcy while the cash in the bank is prone to instant withdrawals. As such do approach a financial advisor that may render a good piece of advice whether to go in for pension-unlocking or not.


What Is A Public Liability Insurance And How Does It Benefit Your Business

If you own a business, chances are that you would need a public liability insurance cover. In fact majority of the businesses that need to interact with public members should consider this kind of cover. If your business causes injury to any property, you will be liable to pay up for the damages and public liability insurance in this case can cover all the expenses that you incur during this process including any related hospital or legal fees. Now, if you have a small business it could mean the distinction between your business remaining open and closing. So, from a hotel or a shopping mall that has a large number of footfalls on a daily basis to a small job in other’s property like, carpenter, builder, etc., you need to consider having a public liability insurance cover.

Consult your insurance advisor to ensure help you find the best public liability insurance cover for your business. They are professionals and they will be able to tell you all about a policy and the benefits you and your business will receive from them. You can also look for an expert insurance broker online, or get a public liability insurance quote and compare them on a comparison website. However, it would be better for you to consult the lawyer of your firm to go through your insurance policy before you sign on the dotted lines. Now, in order to calculate your insurance quote, the insurance company would think over a lot of factors. The first thing would be to check you’re your business activity level which is mostly turnover dependent. You should make sure that your insurance policy covers a third party cover, especially, if you are tradesman or if your business is established in someone else’s property.

For instance, if a plumber causes any accidental damage to the pipelines leading it to leaks, a public insurance policy would cover any related costs incurred for the damage that he is liable to take care of. Now, once you have decided to get a public liability insurance quote and apply for a public insurance policy, it would be imperative for you to fill an application with all honesty. This is because, at the time of your claim if the insurance company finds out any false information on your application form, they can cancel the policy right away. This in turn could result in closing down of some businesses, especially the small ones.

A business always has a chance of meeting with some kind of accident, hence, having a right insurance policy ensures that the business is prepared for any worst cases, they are aware that the property of their customers can be repaired, their occupancy is restored, and the medical expenses are paid for. You can also consider having an employer’s liability insurance and professional indemnity insurance along with the public liability insurance policy for your business.

Therefore, talk to a professional insurance advisor, get a public liability insurance quote, and have the damages paid for.