Income Tax Regulations — 1401
ds d’une police ) future benefits to be provided , in respect of a coverage under a life insurance policy at any time, means (a) if there is a fund value of the coverage at that time, each benefit on death that would be payable under the coverage at a particular time after that time determined as if the amount of the benefit were equal to the amount by which the benefit on death at that time exceeds the fund value of the coverage at that time; and (b) in any other case, each benefit on death payable under the coverage at a particular time after that time. ( prestations futures à verser ) future net premiums or cost of insurance charges , in respect of a coverage at any time, means (a) for the purposes of paragraph (a) of the description of C in the definition net premium reserve in this subsection, each amount determined by the formula A × B/C where A is future premiums or cost of insurance charges in respect of the coverage at that time, B is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on that date, and C is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on that date; and (b) for the purposes of paragraph (b) of the description of C in the definition net premium reserve in this subsection, (i) each amount determined by the formula A × (B + C)/(D + E) where A is future premiums or cost of insurance charges in respect of the coverage at that time, B is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, C is the present value at the date of issue of the coverage of future benefits to be provided in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, D is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is one year after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, and E is the present value at the date of issue of the coverage of future premiums or cost of insurance charges in respect of the coverage on the particular day that is two years after that date and, if the coverage has a fund value on that date, determined as if the fund value of the coverage were nil on that date, and (ii) notwithstanding subparagraph (i), in respect of the second year of the coverage, the amount determined by the formula (A + B)/2 where A is the amount determined under subparagraph (i), and B is the amount of a one-year term insurance premium or cost of insurance charge that would be payable in respect of the coverage if the benefit on death were equal to the amount by which the benefit on death at the end of the first year of the coverage exceeds the fund value of the coverage, if any, at the end of the first year of the coverage. ( frais d’assurance ou primes nets futurs ) future premiums or cost of insurance charges , in respect of a coverage at any time, means (a) if there is a fund value of the coverage at that time, each cost of insurance charge in respect of the coverage that would be incurred at a particular time after that time determined as if the net amount at risk under the coverage after that time were equal to the amount by which the benefit on death under the coverage at that time exceeds the fund value of the coverage at that time; and (b) in any other case, each premium in respect of the coverage that is fixed and determined on the date of issue of the coverage that will become payable, or each cost of