The purchase of Life Insurance Plans to provide a spouse with a continuing income is accomplished by selecting the amount of coverage needed, the duration, inflation factors, and projected rate of return. Your professional advisor can assist you with determining the amount, type of plan, and structure which best suits your personal needs.

Pay Off Debt
Often overlooked is the use of Life Insurance Plans to eliminate debt from becoming the responsibility of the surviving dependents. Bank loans, credit cards, student loans, car loans, personal guarantees, as well as, an allowance for unpaid bills should all be considered.

Providing 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.

Recent tax changes have made charitable giving even more attractive for Canadians.

By donating to one’s church, charity, or favourite cause significant tax deductions are available. Offsetting current tax liabilities or addressing taxation upon death can be accomplished by the use of Universal or Whole Life plans.

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.

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.

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 is recommended for their permanent coverage features.

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. These proceeds can be passed tax-free to a named beneficiary such as a dependent, relative, charity or church.

Significant portions of income tax, probate fees, and settlement expenses can all be avoided.

Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when you are disabled. Disability comes in many forms, primarily from sickness or accidents. Many people automatically relate disability to accidents only. However, the mass majority of incidents result from sickness, so it is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many features are offered as options in addition to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

Key people within a business are your most valuable assets. Income loss to the business due to a disability can be significant, if not very harmful to continued success. Several products which are available that can alleviate these concerns include:

Key-Man Disability coverage – this coverage allows for a replacement to be implemented, trained and integrated without the usual financial burden.

Disability Buy-Out coverage – in the case of prolonged or permanent disability, this product provides a lump sum payment to the disabled individual to buy out his/her interest in the business.

Personal Income Replacement – Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when you are disabled. Disability comes in many forms, primarily from sickness or accidents. Many people automatically relate disability to accidents only. However, the mass majority of incidents result from sickness, so it is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many additional features are offered as options to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

In the case of a critical illness such as cancer, stroke, heart attack, or coronary artery disease, etc., products exist to provide money when it is needed most. Critical Illness insurance provides a lump-sum payment to the insured upon the onset of the above and numerous other conditions. Amount of coverage, optional benefits and features are personally chosen by the consumer to match his/her individual needs.

Having the financial ability to access the best medical care is becoming vital in personal security planning. Benefits also offer the ability for lifestyle adaptation and continuation.

Personal Income Replacement – Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when disabled. Disability comes in many forms primarily from sickness or accidents. Many people automatically relate disability to accidents only however, the mass majority of incidents result from sickness. It is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many features are offered as options in addition to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

Critical Illness Insurance – in the case of a critical illness such as cancer, stroke, heart attack, or coronary artery disease, etc., products exist to provide money when it is needed most. Critical Illness insurance provides a lump-sum payment to the insured upon the onset of the above and numerous other conditions. Amount of coverage, optional benefits and features are personally chosen by the consumer to match his/her individual needs.

Having the financial ability to access the best medical care is becoming vital in personal security planning. Benefits also offer the ability for lifestyle adaptation and continuation.

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 is recommended for their permanent coverage features.

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.

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

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. These proceeds can be passed tax-free to a named beneficiary such as a dependent, relative, charity or church.

Significant portions of income tax, probate fees, and settlement expenses can all be avoided.

Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when you are disabled. Disability comes in many forms, primarily from sickness or accidents. Many people automatically relate disability to accidents only. However, the mass majority of incidents result from sickness, so it is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many features are offered as options in addition to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

Key people within a business are your most valuable assets. Income loss to the business due to a disability can be significant, if not very harmful to continued success. Several products which are available that can alleviate these concerns include:

Key-Man Disability coverage – this coverage allows for a replacement to be implemented, trained and integrated without the usual financial burden.

Disability Buy-Out coverage – in the case of prolonged or permanent disability, this product provides a lump sum payment to the disabled individual to buy out his/her interest in the business.

Personal Income Replacement – Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when you are disabled. Disability comes in many forms, primarily from sickness or accidents. Many people automatically relate disability to accidents only. However, the mass majority of incidents result from sickness, so it is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many additional features are offered as options to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

In the case of a critical illness such as cancer, stroke, heart attack, or coronary artery disease, etc., products exist to provide money when it is needed most. Critical Illness insurance provides a lump-sum payment to the insured upon the onset of the above and numerous other conditions. Amount of coverage, optional benefits and features are personally chosen by the consumer to match his/her individual needs.

Having the financial ability to access the best medical care is becoming vital in personal security planning. Benefits also offer the ability for lifestyle adaptation and continuation.

Personal Income Replacement – Often overlooked is the necessity for income replacement in the case of disability. On-going mortgage payments, monthly bills, credit card payments, loan payments, and household needs do not go away when disabled. Disability comes in many forms primarily from sickness or accidents. Many people automatically relate disability to accidents only however, the mass majority of incidents result from sickness. It is important to have coverage for both occasions.

The amount of coverage should directly relate to your income necessity on a monthly basis. When coverage commences and how long it pays can be determined with individual consideration to your personal needs. Also, many features are offered as options in addition to the base coverage.

Personal consultation with Professional Advisor is strongly recommended due to the complexities of the contracts and features available.

Critical Illness Insurance – in the case of a critical illness such as cancer, stroke, heart attack, or coronary artery disease, etc., products exist to provide money when it is needed most. Critical Illness insurance provides a lump-sum payment to the insured upon the onset of the above and numerous other conditions. Amount of coverage, optional benefits and features are personally chosen by the consumer to match his/her individual needs.

Having the financial ability to access the best medical care is becoming vital in personal security planning. Benefits also offer the ability for lifestyle adaptation and continuation.

Funding a Buy/Sell agreement with a Life Insurance Plans has long been the preferred method of businesses and corporations. Simply put, the business or corporation requires immediate liquidity to buy out a partner or shareholders interest at death. These arrangements can be structured in many ways depending on the individual situation; Professional Assistance should always be sought prior to implementation.

The most valuable resource that a business has is its’ people. The financial loss to a business at the death or disability of a key employee/owner can be harmful if not devastating to its continued success. Money is needed to provide a replacement for this individual or for the financial loss, which will be suffered by the business. The use of Life and Disability Plans provide the solution.

Loans & Creditor Protection – Should a business owner or shareholder die or become disabled it is vital to make provisions for debts of the business or corporation. Often the loss of a key person will dramatically affect the continued profitability, as well as, the ability to obtain or maintain credit. Banks, lending institutions and suppliers might be hesitant to continuing business with the company. The use of Life and Disability Insurance Plans to avoid this occurrence is advisable.

Whether a successor is a family member, partner/shareholder, or key employee proper planning is vital to the continued success of your business now and in the future. Early planning avoids the added strain caused by re-financing to buy out a retiring owner/shareholder. Universal and Whole Life plans are ideal financial tools for this application due to their ability to shelter funds on a tax-deferred basis.

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 without having to pay personal income tax. Incorporate 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.

In succession planning the question of Fair vs. Equal comes up in a large number of situations. If an owner/shareholder leaves a business asset or a company to one child; what is a fair treatment for a non-participating children? Death benefits from a life insurance plan can be used to provide a fair equalization solution. The amounts can be selected by the owner/shareholder, which would alleviate the added pressure, complications and financial burden to his or her successor.

Should a business owner or shareholder die or become disabled it is vital to make provisions for debts of the business or corporation. Often the loss of a key person will dramatically effect the continued profitability, as well as, the ability to obtain or maintain credit. Banks, lending institutions, and suppliers might be hesitant to continuing business with the company. The use of Life and Disability Insurance Plans to avoid this occurrence is advisable.

Capital gains tax in Canada not only applies to shareholders while living but also at their death. Growth of business assets above the adjusted cost base becomes taxable at the capital gains rate. Over time these gains can become a significant hidden tax bill. Life Insurance plans can be designed to provide a solution.

Professional Assistance should be sought in determining the projected capital gains and the possible tax bill.

Many privately held corporations in Canada accumulate income, which becomes trapped in the corporation. If this surplus is invested and gains are obtained they become taxable at a very high rate.

Shareholders and professionals can use Universal Life or Whole Life Insurance to avoid this annual taxation and provide liquidity for creditors and tax liabilities through the insurance proceeds. Cash values can accrue tax-deferred in a wide array of investment options. Pension augmentation or leveraging strategies can be implemented in the future to benefit the shareholders or professionals.

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. Incorporate 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.

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.

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.

Income Sheltering – 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.

Leveraging Concepts – 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 without having to pay personal income tax. Incorporate 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.

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.

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 without having to pay personal income tax. Incorporate 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.

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. Incorporate 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.

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 is recommended for their permanent coverage features.

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.

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.

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 Life 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.