Compensates the business for lost revenue, profits, or clients due to the absence of the key person.
Provides funds to cover operating costs, recruitment, and transition while adjusting to the loss.
Helps pay off loans or financial obligations tied to the key person.
Reassures investors, lenders, and stakeholders that the business is protected.
Provides resources to attract or retain talent if the key person is lost.
Premiums may be structured to provide tax-efficient benefits depending on the policy.
Funds taken out are added to your income.
Withholding tax applies to non-qualified withdrawals.
Savings are limited by government-set thresholds.
Withdrawn amounts generally cannot be re-contributed.
Canadian residents who are first-time home buyers aged 18–71.
Up to $8,000 per year, with a lifetime limit of $40,000.
Yes, similar to an RRSP, reducing your taxable income.
No, if used to buy your first home.
Yes, unused room carries forward to future years once the plan open
Yes, both programs can be used for first-time home purchases.
Funds can be transferred to an RRSP or taxed as income.
You can contribute until December 31 of the year you turn 71.
No, each individual is allowed only one FHSA.
