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Glossary (Q to T)
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When you convert your RRSP to a RRIF or Registered Retirement Income Fund, you continue to enjoy the benefits that you had with your RRSP including tax-sheltered growth, investment control and flexibility. RRIFs bring other benefits: they allow you to vary your income stream from year to year (subject to a minimum amount set by Canada Customs and Revenue Agency) and to make additional withdrawals when needed.

Registered Pension Plan (RPP)
For a pension plan to have tax exempt status, it must be registered under the Income Tax Act and under either the federal Pension Benefits Standards Act or under a provincial Pension Benefits Act. Contributions are tax deductible by an employee and employer within the federal taxation limits.

Any Canadian resident who is under age 69 with qualified earned income can contribute to a Registered Retirement Savings Plan (RRSP). The amount you can contribute depends on the income you earned in the previous year and limits established by Canada Customs and Revenue Agency. Benefits include tax-sheltered growth, investment control and flexibility.

Regular Care of a Physician
To be considered totally or residually disabled, you must be under the care of a physician that is appropriate in nature and frequency for the condition.

'Regular Occupation' Definition of Disability
Some individual disability contracts use a 'regular occupation' definition, which means that as long as you're not working because you can't do your regular job, you're considered disabled. However, you're no longer considered totally disabled if you go to work at a new occupation. So, for instance, if you were a dentist and lost the use of your arm, you would be considered disabled. If you later start to work in a different field, your total disability benefits would cease. You'll often find income replacement plans that provide a 'regular occupation' definition but only for the first two or five years of a disability. After that, the definition may switch to an 'any occupation' definition. This allows you a reasonable length of time to change careers and resume a working life. This definition does not apply to group benefit plans.

Recurrent Disability
If your disability recurs within a specified time period from causes that are the same as or related to the cause of your prior disability, the subsequent disability is considered a continuation of the first for the purposes of individual disability insurance plans.

Residual Disability
Some individual disability policies include a residual disability definition, which typically means you're not totally disabled, but due to sickness or injury, have an income loss of 20% or more. Regular care from a physician is required.


Segregated Fund
An investment or co-mingled fund offered by a Canadian life insurance company that invests in a portfolio of securities on behalf of several investors. It is held separate from the insurer's general assets and provides various insurance benefits.

Survival Period
For a critical illness insurance policy, this is the number of days you must survive following the diagnosis of a covered impairment in order for the benefit to be payable. This period is normally 30 days following diagnosis in the definition of the corresponding covered impairment.


Total Accumulated Value (Market Value)
The total accumulated value (or market value) of your plan is determined as the sum of the accumulated unit value credited to your plan in each segregated fund.

Total Disability
Depending on the specific individual disability insurance policy, the definition for total disability may be based on the regular occupation, own occupation or any occupation, or a combination of these.

For group benefit plans, 'total disability' normally means that solely because of an illness or accidental injury, you're unable to perform the essential duties of your own occupation (type of work, not just your own job) for a certain period of time (often 24 months), and from then on unable to work at any occupation for which you are or may reasonably become, fitted by education, training or experience.

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