Life Insurance as Tax Shelters

Life Insurance

Universal life insurance provides permanent life insurance protection with a tax-advantage investment component. As cash values accumulate, they can be used to pay part or all of the cost of your insurance. In addition to providing security and protection through its life insurance component, universal life insurance can provide an additional source of income for emergencies, retirement or for estate planning needs. You select an investment mix that’s best for you, your financial goals and circumstances.

Tax-Advantaged Growth

The total account value in your policy can grow on a tax-advantaged basis within limits. The insurance proceeds paid to your beneficiary upon your death are tax-free and may include the total account value you’ve been accumulating over the years.

Many people do not know that life insurance offers tax free growth, creditor protection, diverse investment options and the ability to remove your investment growth tax free! With the right planning you can move your investment out tax free using your life insurance policy as collateral with the banks.

Many of our wealthy clients do not use RRSP’s as an investment vehicle for building up their retirement account. Life insurance is the most widely used financial tool for building and retaining high net worth.