Insured Retirement Plan - when is it suitable?

  • Last Updated:
  • Feb 11th, 2020 4:59 pm
Jan 31, 2008
401 posts
Summerstown, ON

Insured Retirement Plan - when is it suitable?

My wife was sold this product as a new immigrant to Canada who arrived to work at Tim Hortons.

When she arrived, she had no savings, no TFSA or RRSP and was making mimimum wage; she was only 27-years old and had no excessive income to spare.

An unnamed financial agency/life insurance company was able to coerce her into thinking this was in her best financial interest and she signed up.

It took 5-years before she realized something was sketchy, after the company tried to recruit her and she noticed her investment was below principal.

The provincial law states an insurance advisor must always act in the best interest of their client - so I would like to ask: does anybody believe that an IRP was suitable for my wife at the time?

The fact sheets from various Life Insurance providers tailors the suitability of this product to: high net worth individuals, those who maxed out tfsa/rrsp, income to spare, over 35+.
"It is never too late to be what you might have been. "
George Eliot