A
Annuity
A contract with an insurance company that pays you a regular income — usually for life or for a set number of years — in exchange for a lump-sum or periodic premium. Often used to convert savings into reliable retirement income.
B
Beneficiary
The person (or people, or entity) who receives the proceeds of an insurance policy when the insured person dies. You can name multiple beneficiaries and specify what percentage each gets.
C
Cash value
The savings component inside a permanent life insurance policy (Whole Life or Universal Life) that grows over time, tax-deferred. You can borrow against it or withdraw from it.
Convertibility
A feature on most term life policies that lets you convert to a permanent (Whole Life or Universal) policy without a new medical exam. Important if your health changes.
Critical illness insurance
Pays a tax-free lump sum if you're diagnosed with a defined serious condition (cancer, heart attack, stroke, etc.). Different from disability insurance — pays whether or not you can still work.
D
Deductible
The amount you pay out of pocket before insurance starts covering costs. Common in travel and Super Visa insurance.
Disability insurance
Replaces a portion of your income if you can't work due to illness or injury. Provided through work, individually, or both.
F
FHSA (First Home Savings Account)
A registered account introduced in 2023 for first-time home buyers in Canada. Contributions are tax-deductible like an RRSP, and qualifying withdrawals are tax-free like a TFSA. Annual limit $8,000, lifetime limit $40,000.
G
Group insurance
Coverage provided through your employer, typically including life, disability, dental, and extended health. Usually cheaper than individual policies but ends if you change jobs and limits how much coverage you can choose.
I
IRCC
Immigration, Refugees and Citizenship Canada — the federal department that issues Super Visas, sets sponsorship rules, and defines health-insurance requirements.
Insurance Council of British Columbia
The provincial regulator that licenses and oversees insurance advisors and agencies in BC. Rajni Bala is licensed and regulated by the Council.
L
LICO (Low-Income Cut-Off)
Statistics Canada's income threshold used by IRCC to determine if a sponsor's income is sufficient to support a visiting parent or grandparent under the Super Visa program. Updates annually.
M
MER (Management Expense Ratio)
The annual fee charged by a mutual fund or segregated fund, expressed as a percentage of assets. A 2.0% MER on $100,000 is $2,000/year. Lower MERs leave more in your pocket.
Mortgage insurance (creditor life)
Insurance the bank offers when you sign a mortgage. Pays the bank — not your family — if you die, and coverage shrinks as you pay down the loan. Usually replaceable with personal term life for less money.
P
Permanent life insurance
A category of life insurance that covers you for life (not just a fixed term) and builds cash value. Includes Whole Life and Universal Life. More expensive than term but never expires.
PIPEDA
The Personal Information Protection and Electronic Documents Act — Canada's federal private-sector privacy law that governs how businesses collect, use, and share personal information.
Pre-existing condition
A medical condition that exists before a policy is issued. Travel and Super Visa insurance often cover pre-existing conditions only if they've been "stable" for a defined period (typically 90 or 180 days) before coverage starts.
Premium
The amount you pay for an insurance policy — monthly, quarterly, or annually. Premiums can be level (fixed) or increasing.
Probate
The legal process of validating a will and administering an estate. In BC, probate fees are roughly 1.4% of the gross estate over $50,000. Some assets (like life insurance and segregated funds with named beneficiaries) bypass probate.
R
RDSP (Registered Disability Savings Plan)
A tax-deferred savings plan for Canadians eligible for the Disability Tax Credit. The federal government adds matching grants and bonds, often making it one of the highest-return savings vehicles available.
RESP (Registered Education Savings Plan)
A tax-deferred account for funding a child's post-secondary education. The federal government adds the Canada Education Savings Grant — a 20% match up to $500/year per child.
Rider
An optional add-on to a base insurance policy that adds extra benefits — like a child rider, accidental death rider, or disability waiver of premium.
RRSP (Registered Retirement Savings Plan)
A tax-deferred retirement savings account. Contributions reduce your taxable income; withdrawals in retirement are taxed as income. Annual contribution limit is 18% of last year's income, up to a federal cap.
S
Segregated fund
An investment fund issued by an insurance company that combines mutual-fund-style investing with insurance guarantees (maturity guarantee, death benefit, named beneficiary, creditor protection). Typically costs more than a comparable mutual fund.
Sponsor (Super Visa)
The Canadian citizen or permanent resident who invites a parent or grandparent under the Super Visa program. Must meet LICO income, sign a financial commitment letter, and arrange the required health insurance.
Super Visa
A multi-entry visa for parents and grandparents of Canadian citizens or permanent residents. Each visit can last up to 5 years, the visa itself is valid for up to 10 years, and private health insurance with at least $100,000 coverage is mandatory.
T
Term life insurance
Life insurance with a fixed term (10, 20, or 30 years). Premiums are fixed for the term, coverage is fixed at the chosen amount, and there's no cash value. Usually the cheapest way to cover a defined need (e.g., until kids are independent).
TFSA (Tax-Free Savings Account)
A Canadian registered account where contributions are not tax-deductible but withdrawals (including all gains) are completely tax-free. Annual contribution limit is set by the federal government and grows over your lifetime.
U
Underwriting
The insurance company's process of reviewing your application, medical history, lifestyle, and risk factors to decide whether to issue a policy and at what rate. Done up-front for personal policies, often deferred to claim time for bank mortgage insurance.
Universal life insurance
A flexible permanent life insurance policy that lets you adjust premiums and coverage, and gives you investment options for the cash value. More complex than Whole Life; requires more attention.
V
Visitor insurance
Travel medical insurance for visitors to Canada (or Canadians traveling abroad). Super Visa insurance is a specific type of visitor insurance that meets IRCC requirements.
W
Whole life insurance
Permanent life insurance with fixed premiums and a guaranteed death benefit. Cash value grows on a guaranteed schedule, often with non-guaranteed dividends added. Used for legacy planning, tax-advantaged wealth transfer, or as a long-term savings tool.