Glossary of Terms

Acronym	Means	Description
	Life Insurance	Permanent & term insurance products provide tax-free cash at the time of insured's death
CI	Critical Illness	Provides tax-free cash following 30 day survival after diagnosis of a major critical illness. Specific definitions will apply
CPP	Canada Pension Plan	Provides pension (monthly income), disability insurance, & survivor benefits, child/orphan benefits, and death benefit (taxable)
DI	Disability Insurance	Provides income in the event of specified long-term disabilities. Funds are non-taxable
GIC	Guaranteed Income Supplement	Provides a monthly non-taxable benefit to Old Age Security pension recipients who have a low income and are living in Canada
ITF	In Trust For Accounts	Investments in which parents/guardians can invest money for minors.
LIRA/LIF	Locked-In Retirement Account / Locked-In Funds	Pension funds which have been transferred to the client and cannot be accessed before the age of 55.
LRIF	Locked-In Retirement Income Fund	Converts the LIRA to income (with restrictions of minimum and maximum). Cannot be cashed – must be used as a pension.
OAS	Old Age Security	Available to Canadian citizens age 65 or older, who have lived in Canada for at least 10 years after age 18. Potential “clawback” if income exceed $74,789 (2017)
Open	Non-registered Investments	No tax sheltering on profits
RDSP	Registered Disability Savings Plan	Tax-sheltered savings plan for only those persons with a “Disability Tax Credit.”
RESP	Registered Education Savings Plan	Tax-sheltered savings to be used toward children’s education (with a 20% grant from CRA – up to age 18). Beware! of fees, restrictions, different providers
RRIF	Registered Retirement Income Fund	Converts RRSP to taxable income at retirement. Provides a “paycheck” after you retire
RRSP	Registered Retirement Savings Plan	Reduce income taxes today allowing savings in a tax-sheltered vehicle for your retirement years.
Seg Funds	Segregated Funds	Life insurance Company investments, with a name beneficiary – proceeds will bypass will and probate fees. May also include maturity and death benefit guarantees.
TFSA	Tax Free Savings Account	Tax free investments without ever having to pay tax. NOTE: Does not count as income for OAS income limits.