Insurance Products Introduction / Universal Life
Universal Life Insurance
A universal life policy is one of the most flexible insurance products available. You not only have the peace of mind knowing you have insurance protection, you also have the ability to contribute money to an investment account that grows (like a self directed RRSP) on a tax-deferred basis. Most universal life policies provide you with a variety of options and features so you can customize your policy to meet your needs. And a good universal life plan lets you change your policy as your needs change.
It is important to remember that you don’t have to pay tax on any growth in the investment accounts because it is part of a life insurance policy. In addition, the proceeds of a life insurance policy are distributed to your heirs tax free. These tax benefits, along with other benefits described in the "Tips" column provide high net worth individuals or business owners significant advantages when creating an estate plan.
Strategies to consider
Corporate
- Corporate Investment Shelter
Designed to increase the size of your estate by moving surplus corporate dollars exposed to tax into a tax deferred life insurance policy. The life insurance proceeds can then be paid out tax free via a tax free capital dividend to your heirs.
- Insured Retirement program
Designed to meet your need for life insurance protection today and access to tax-advantaged cash in the future.
- Insured Annuity
Designed to increase your cash flow when you're alive, while making sure you have the funds to leave a legacy when you die.
Personal
- Estate Shelter
Designed to increase the size of your estate by moving surplus funds exposed to tax into a tax-deferred life insurance policy. The life insurance proceeds are then paid to your beneficiary, tax-free.
- Insured Retirement Program
Designed to meet your dual need for insurance protection now and a supplement to retirement income in the future.
- Insured Annuity Personal
Designed to increase your cash flow when you’re alive, while making sure you have the funds to leave a legacy when you die.
- Estate Preservation
Designed to help you understand how much capital you will need to fund the liabilities that will result from your death, including capital gains tax, RRIF tax, probate and other estate costs.
All insurance products offered through yourCFO Wealth Management Inc.
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Proceeds from a life insurance policy may go directly to your heirs. By bypassing your estate, you avoid all the costs associated with an estate. These include legal, executor, and probate fees.
Proceeds from a life insurance policy may be protected from creditors.
Payments from an Insured Annuity are more tax efficient than traditional fixed rate investments.
Payment options are also flexible: you can decide to pay only the insurance and administrative costs each month (year) and not use the investment component at all; or you can contribute an amount into your investment account up to a maximum level prescribed under the income tax act.
Most insurance providers have numerous third party or in house investment options for your account.
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