Preserve your wealth

A strategy to protect the value of your legacy

Photo of a baby holding adults hand

A permanent life insurance policy can provide your beneficiaries with the funds necessary to pay taxes owing upon your death.

The Preserve your wealth strategy is designed for individuals who:

  • Have built-up significant wealth in capital assets
  • Have a second property that has appreciated in value
  • Want to keep a vacation home in the family
  • Are worried about leaving their family with a large tax burden
  • Want to leave their full estate to heirs or favourite charity
  • Want to provide funding for final expenses, outstanding debts, legal fees and taxes

The situation

You have worked hard to achieve a degree of financial success. As each year passes and you become financially independent, you may think your need for life insurance decreases. However, the largest burden on your estate can be the taxes owing on assets upon your death. This may force the sale of some or all assets, perhaps below fair market value, in order to pay the tax. The family may be forced to sell a cottage or vacation property to pay the taxes owing on its increase in value. This can potentially reduce the legacy you will leave to your heirs or favourite charity. Would you like to know how to preserve your wealth to ensure the full value of your estate is received by your heirs or favourite charity?

The strategy

A permanent life insurance policy can provide your beneficiaries with the funds necessary to pay taxes owing upon your death. Life insurance can be a cost-effective strategy to provide funds exactly when they are needed. A tax-advantaged permanent life insurance policy allows for the accumulation of cash values inside the policy, within certain legislative limits and without paying income tax on growth. The death benefit is paid to your beneficiaries tax-free upon your death. With a named beneficiary other than the estate, you can eliminate probate fees on the death benefit (not applicable in Quebec). The Preserve your wealth strategy should be reviewed with your tax advisor and accountant to ensure the strategy is appropriate based on your needs.

The Preserve your wealth strategy offers:

  • Permanent life insurance protection and client control of capital in a tax-advantaged insurance policy
  • Potential for tax-advantaged accumulation that transfers tax-free to beneficiaries upon your death
  • Funding to offset anticipated tax liability
  • Flexibility to change the policy beneficiary, and coverage amount (subject to any underwriting requirements)
  • The elimination of probate fees at death with a named beneficiary other than the estate (not applicable in Quebec) For more information about this and other estate planning material, contact your financial advisor!

All comments related to taxation are general in nature and are based on Canadian tax legislation, which is subject to change, and apply to Canadian residents. For the implications as they relate to individual circumstances, consult the appropriate legal, accounting or tax expert.

Employment, what’s changed and what remains the same?

Protect Your Family with Life Insurance

Purchasing of Life Insurance is a decision you don't want to defer

Years ago, we could secure employment where you did your job and went home in the

evening to enjoy your family time. Now it’s a crazy life with a frantic pace, which we call progress in a 24/7 world.

Most employers are asking their employees to work longer hours, earning less money and with little assistance. We live in an age where we have instant access to emails, text messaging and abundance of information at the tips of our fingers. One would think with this we would have more time however it has been proven to have caused the opposite. Inundated with so much information, we sometimes find it more difficult to make a decision on the simplest tasks. Should I buy Samsung flat screen or Sony? Should I get a Ford or GM? Should I buy term life insurance or whole life insurance? If we continue differing making these decisions, it compounds the problem to the point where we get overwhelmed and run further away from the decision.

In the end, what TV or car to buy has little impact on our future. By deferring buying important life insurance coverage, you are putting your family at a great risk. Your family may not be able to have the basic needs, such as paying a mortgage, food, education and so much more.

My advice is simple – provide insurance. The need is real and the need for insurance will not go away. Whether you buy term insurance or whole life you will know that the basic needs for your family will be provided, if you are not there to provide . If you would like to obtain a instant online life insurance quote please feel free to visit our website.

Which Type Of Life Insurance Is Best For You?

In regards to life insurance there are two basic types, one being term and the other permanent. Term insurance provides life insurance for the amount of time that the policy holder specifies. If the insured dies within the specified time, the face value of the policy will be given to the beneficiary, however if he does not die within that time span and the policy is not renewed, then nothing will be paid out. Permanent life insurance on the other hand, provides insurance protection for the policy holder’s life span, as well as a savings element. There are two common types of permanent insurance: whole life insurance and universal life insurance.

Permanent is more expensive to own than term insurance, however, you should let your family’s need be the determining factor in deciding which type of insurance is best for you, rather than the price.

You have probably heard arguments about how term policies are the better deal or marketing hype regarding cash value policies, but what it really comes down to is each person’s individual situation.