| 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. |
