Make your money work as hard as possible, now and in the future
You’ve worked hard, saved carefully, and invested wisely. You have built more than enough wealth to last your lifetime and want to start saving for the next generation. You’ve already maxed out your RRSP and TFSA contribution room and are looking for a good place to put your savings. How can you protect and grow your investments in a tax-efficient way? Enter permanent life insurance, a unique investment tool with powerful tax benefits that can be useful for you in your lifetime, as well as help protect the people you love when you’re gone – and even your business.
How does permanent life insurance work?
A portion of the premium pays for the insurance coverage, while the other goes into a savings component (cash value) and grows on a tax-deferred basis. With most types of permanent life insurance, the investment portion can be tailored to fit your investment goals and risk comfort – for example, if you prefer a less-hands-on approach, it can be managed directly by the insurance company, similar to a mutual fund. Depending on the policy, as the death benefit increases, so does the cash value that you can access during your lifetime. Upon death, the benefit, including any accumulated cash value (minus what is withdrawn or borrowed against), is distributed tax-free to named beneficiaries of your estate.1