Help From An Insurance Advisor:
Financial security for business owners and families

Life insurance is an essential financial-planning tool that, for just a few pennies on the dollar, can provide financial security for business owners, partners and families in the case of the untimely death of a key income-earner.

The numerous personal and corporate benefits of a life-insurance policy include the provision of::

  • tax-free capital that may be used to fund liabilities, pay replacement costs for key employees, or be used for ongoing living and operating expenses;
  • tax-free growth within the plan. Reserve income invested in permanent life insurance can enjoy a tax advantage of as much as 35% over alternative investments;
  • funding for business transactions under buy-sell agreements;
  • protection for the plan-holder’s estate – preventing shrinkage from the negative effects of inflation and taxation, including capital gains and recaptured depreciation;
  • the opportunity to move death-benefit proceeds that are greater than the premiums from the business to the personal holdings of shareholders, tax-free – providing not just a deferral, but a permanent tax savings; and
  • opportunities for planned giving. Recent changes in the Income Tax Act allow the charitably-minded to use life insurance to make substantially greater charitable gifts than was previously possible – and to avoid challenges from the will or the estate.

Life insurance is a complex product. Different plans offer a host of potential applications, features, benefits and options. With the assistance of a knowledgeable, qualified, independent advisor, you will be able to determine the most appropriate life-insurance plan to suit your particular circumstances.

The insurance advisors who are members of the Estate Planning Council of Edmonton—all of whom have attained the designation of chartered life underwriter (CLU) – have access to the range of insurance products, and can help you to formulate a plan that meets your needs precisely. Contact one of them today.

Estate Planning Tip: Existing Policies

It is wise to check existing life-insurance policies from time to time to ensure that they continue to meet your needs. Over the years, your economic status and lifestyle change, and so do the needs of your beneficiaries. A review of the latest life-insurance products may allow you to make simple modifications that will improve the value and security of your estate.