Our Approach
While we offer TFSA and RRSP options, our tax-minimization and tax-sheltered investment solutions extend beyond these traditional vehicles. Given the low contribution limits for TFSAs and RRSPs, many clients seek additional tax free investment opportunities once they've hit their contribution limits. Our strategies include corporate and personal investing vehicles like Segregated Funds and leveraging Whole Life Insurance as a tax-free investment vehicle and/or using the policy as collateral to secure bank financing - providing greater financial flexibility and growth potential.
Our Services
Investing with Whole Life Insurance
Whole life insurance is a type of permanent life insurance that provides lifelong coverage and includes a savings or investment component known as cash value.
Whole life insurance is the only tax-exempt investment vehicle in Canada that can be owned by your corporation with no contribution limits.
Immediate Financing Arrangement (IFA)
A strategy where you borrow against the cash value of a Whole Life Insurance policy from day one. It’s financing in reverse. First, you pay your annual premium. Then, the bank lends you back the money. The loan is not repaid during your lifetime and it is eventually covered by the policy’s death benefit. This strategy allows you to invest your funds elsewhere while securing the life insurance you need.
What are the benefits of investing in Whole Life Insurance?
In additional to obtaining the insurance coverage that you need, whole life investment provides the following investment benefits:
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Guaranteed Cash Value Growth: Whole life insurance policies include a savings component that grows over time, often referred to as the cash value. This growth is generally guaranteed and is not subject to market fluctuations, making it a stable, long-term investment.
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Tax-Advantaged Growth: The cash value grows on a tax-deferred basis, meaning no taxes are owed on the growth as long as it remains within the policy. This can provide a significant advantage over traditional taxable investments.
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Dividend Payments: Many whole life policies are participating policies, meaning they can pay policyholders annual dividends based on the insurance company's performance. These dividends can be reinvested to increase the cash value, used to pay premiums, or taken as cash.
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Access to Cash Value: Policyholders can access the cash value through policy loans or withdrawals. Loans against the policy are typically tax-free and can be repaid at the policyholder's discretion. This liquidity can be used for personal needs, investments, or as collateral for bank financing.
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Estate Planning: The death benefit paid to beneficiaries is generally tax-free in Canada, making whole life insurance a valuable tool for transferring wealth efficiently. It can help cover taxes on estate assets, ensuring heirs receive the full value of their inheritance.
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Collateral for Bank Financing: The cash value of a whole life policy can be used as collateral to secure loans, providing access to funds while keeping the policy intact.
Who can get whole life insurance?
Whole life insurance is generally available to most individuals who meet specific eligibility criteria, including age, health, and financial needs. To determine if you would be eligible, please contact us to set up a free initial consulation.
As an independent firm, we are able to offer whole life insurance products and secure loans from all major insurers and banks in Canada.
