Critical Illness Insurance | Long Term Care Insurance

Uses of Life Insurance

REPLACE LOST INCOME

  • due to the death of a breadwinner, or
  • the death of a pensioner, whose pension does not provide for survivorship.

LAST EXPENSES

  • to cover all funeral expenses.
  • paid-up life insurance is an inexpensive alternative to pre-paying a funeral.

ESTATE LIQUIDITY

  • immediate cash to eliminate the need to liquidate assets to cover all debts and expenses associated with the settlement of the estate.

TAXES AT DEATH

  • tax-free cash to cover taxes triggered at death (i.e. capital gains, RRSP’s and RRIFS) to avoid having to liquidate other assets.

EQUITABLE SPLIT OF ESTATE

  • provides tax-free cash so that all heirs may share equally in an estate when a major portion of the estate is intended for a single heir (example: an individual would like to leave a business to a child active in the business; cash could be left to the other children).

ESTATE MULTIPLIER

  • life insurance can be used to multiply the value of existing assets to the estate as a legacy to heirs.

PENSION MAXIMIZATION

  • life insurance is in some cases a better alternative to a reduced pension to provide for survivorship.

TAX SHELTERING

  • certain life insurance policies can be used to shelter cash from accrual taxation, to serve as an emergency fund for the future or as a hedge against inflation.
  • any unused cash can ultimately be passed to the next generation tax-free.

CHARITABLE GIFTING

  • to leave an ultimate gift to a favourite charity, larger than would normally be possible.
  • premiums are in some cases eligible for non-refundable tax credits.

SHAREHOLDERS‘ AGREEMENTS

  • to provide funding to guarantee the sale of a business interest in the event of the death of a shareholder.

LIVING BUY-OUT

  • to provide a tax-sheltered fund to facilitate the sale of a business interest at retirement.
  • life insurance can also guarantee completion of the sale should death occur before retirement.

KEY PERSON

  • to provide the funding needed to replace specialized or important services of a key employee.

SOLUTIONS

Today consumers are offered many options when choosing the type of coverage, how much they want to pay, & how long the would like the coverage to last.

RENT OWN LEASE

Inexpensive Premiums Escalate

Owner Determines Deposit Level

Level Deposits

No Equity

Equity grows tax free

Little Equity

Coverage Terminates prior to life expectancy

Coverage for life

Coverage for life if paid for life

Critical Illness Insurance | Long Term Care Insurance