The Role of Life Insurance in Your Financial Plan
Life insurance plays a vital role in estate planning, including preserving the value of your estate, providing financially for dependants or a surviving spouse, and ensuring money is available to pay for any taxes, fees, or other outstanding debts upon death.
Corporate Asset Protection of Your Business
If you are the owner of a successful company it is likely that you have retained profits or surplus cash in your corporation. Corporate Asset Strategy provides tax-sheltered growth as well as maximizing the estate value of your company upon your death.
- While corporate investment income is taxed at a high rate as non-business income, the cash accumulation in a life insurance policy grows tax-deferred under Section 148 of the Income Tax Act;
- The death benefit of a life insurance policy owned and received by a Canadian Controlled Private Corporation is received tax-free and can be paid out to and received by the estate of the shareholder as a tax-free Capital Dividend;
- The corporation has access to the cash values of the Corporate Insurance Policy either by withdrawing cash or by borrowing against the cash value from a lending institution.
Tax Reduction Strategy
So much of financial planning focuses on gaining tax advantages wherever possible. A significant tax-sheltered vehicle exists in the insurance world. It’s a vehicle that not only protects pure insurance from tax, but savings and investment dollars as well.
Certain life insurance products are commonly utilized as
investment vehicles that accumulate assets in a tax-sheltered environment.
Did You Know?
That you can collateralize the Cash Value in your Life Insurance to receive a Tax-Free income stream? Let us show you how!
How We Work?
Financial planning is about more than planning for retirement or protecting yourself against risk – it is about making dreams come true.
We are focused on helping you achieve freedom and choice at all stages of life. To do this, we use a unique planning process, which is based on the cornerstones of financial security. It is a process designed to help you:
- Better understand what financial security means to you by reviewing your current situation and defining goals
- Identify and discuss any roadblocks to achieving your goals and analyse your situation
- Identify any gaps and build a plan to help you achieve your short- and long-term goals and dreams
- Review and monitor your financial security plan regularly to help ensure it continues to meet your changing needs
Since 1993
