Committed to providing solutions for your future needs.

Book a meeting
(877) 422-6346 x 550
CANFIN
Joshua Bacchus, CPA, CFP®, CLU®
Joshua Bacchus, CPA, CFP®, CLU®
Financial Advisor

Library

Audio

Indices

Calculators

PDF Library

What evidence proves that life insurance is worthwhile?

Article Licenses: CA, DL, unknown, unknown
Advisor Licenses:

Compliant content provided by Adviceon® Media for educational purposes only.


shutterstock_35798629

Life insurance has unlimited tactical financial uses.

Life Insurance includes cash benefit payouts arising from personal life insurance, disability insurance, group life and group disability insurance; and income from annuity payments, which together have risen to approximately 40 billion dollars per year in the first decade of the new millennium.

For a person running a business, a disability insurance policy can replace up to 75% or more of the value of a disabled person’s normal working paycheque.

“Life insurance is the first foundation of wealth preservation.”

Personally owned individual life and/or disability insurance can:

  1. Pay off a home mortgage if the family breadwinner dies.
  2. Pay debts and taxes accrued in larger estates leaving heirs with financial stability.
  3. Help small businesses using agreements pass the baton to new leaders.
  4. Fund key-man insurance to replace a leader in a small business.
  5. Help family businesses and farms stay in the family through succession planning while passing wealth (and paying off liabilities) to the next generation.
  6. Pay off capital gains taxes on second properties such as a cottage.
  7. Cover taxes due when remaining Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) holdings.
  8. Pay off large capital gains on investments at home and abroad.
  9. Equalize estates divided amongst siblings whose parents own significant business assets, where some work outside the firm.

The use of life insurance is increasingly creative the more wealth preservation becomes necessary and can assist in this important strategic area of fiscal protection. It can pass substantial sums of cash to future generations using techniques such as estate bonds.

 


 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media.

The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Mutual Funds and/or Segregated Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.