Planning My Retirement

What Planning Is Important To Me?

Personal Lifestyle / Income Requirements

Corporate Pension Augmentation

The advantage of tax-sheltered growth within a Universal or Whole Life plan allows corporations to structure pension augmentation for executives.


By over funding the insurance requirements the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.

Leveraging Strategies

Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages to these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit with out having to pay personal income tax. In corporate arrangements the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Taxation Strategies

Managing Personal Liabilities
Pension Supplementation

Income Shelter – Universal Life has become a vital tool in tax planning strategies. In addition to providing liquidity with tax-free death benefits, Universal Life also offers tax deferred accumulation with a wide array of investment options. Preferred tax treatment and flexibility allow for income sheltering and retirement augmentation.


Corporate Pension Augmentation – The advantage of tax-sheltered growth within a Universal or Whole Life plan allows corporations to structure pension augmentation for executives.


By over-funding the insurance requirements, the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.


Leveraging Strategies – Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages of these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit without having to pay personal income tax. In corporate arrangements, the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax-deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Transferring Wealth

Provide for Children/Grandchildren – The cost of an education, starting a business, a first home, or supporting a young family can be considerable if not overwhelming.


The living or death benefits of Life Insurance Plans can assist children and grandchildren when they need it most.


Capital Gains – Upon the death of the last spouse capital gains become taxable and payable for the taxation year.


Growth above the adjusted cost base of a non-registered investment such as: stock and bond portfolios, revenue and/or recreational properties, business interests, as well as, personal properties intended as investments all become taxable at the capital gains rate.
Offsetting gains and preserving the estate can be obtained at a fraction of the cost by the purchase of Life Insurance Plans.


RRSP/RRIF – Taxation at death – The taxation of RRSPs / RRIFs at death is a significant concern for most Canadians. RRSPs and RRIFs can be rolled to a spouse upon death without tax, however, if single or widowed they become taxable as income in the year of death. Up to almost half of the asset can be lost to tax. The use of Joint Last-To-Die Life Insurance Plans to protect this loss is a very popular and economical solution. Term to 100, Universal Life, or Whole Life are recommended for their permanent coverage.


Sheltering Taxable Assets – Income Shelter – Universal Life has become a vital tool in tax planning strategies. In addition to providing liquidity with tax-free death benefits, Universal Life also offers tax-deferred accumulation with a wide array of investment options. Preferred tax treatment and flexibility allow for income sheltering and retirement augmentation.


Tax-Free Death Benefits – Tax-Free Estate Transfer – Whether using Life Insurance Plans to preserve your estate or strategically shifting money into a plan for sheltering purposes, the benefit of tax-free death proceeds should not be overlooked.
Significant portions of income tax, probate fees, and settlement expenses can all be avoided.

Leveraging Strategies

Asset Management

Asset Management

Diversification and tax strategies can be assisted by the utilization of features contained within a Universal Life plan.


Segregated funds offered by Life Insurance Companies also provide features such as maturity and death guarantees, which assist with asset management and long term planning.

Providing for Dependant(s)

Protection For Loved Ones
Cascading Wealth

The ability to use Universal Life Plans to not only transfer-tax-free death benefits but also tax-free cash values allow the transfer of assets between generations. The strategy is to name a contingent owner on the policy of a Joint Last-To-Die or Multi-Life policy. This allows the cash value to be passed to the contingent owner upon the death of the initial owner without taxation. In turn, the new owner can name a new contingent owner, which continues the strategy.


It is important to seek Professional Assistance prior to implementing this type of planning.