Critical Illness Insurance | Long
Term Care Insurance
Uses of Life Insurance
- due to the death of a breadwinner, or
- the death of a pensioner, whose pension does not provide for survivorship.
- to cover all funeral expenses.
- paid-up life insurance is an inexpensive alternative to pre-paying
- 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).
- life insurance can be used to multiply the value of existing assets
to the estate as a legacy to heirs.
- life insurance is in some cases a better alternative to a reduced
pension to provide for survivorship.
- 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
- any unused cash can ultimately be passed to the next generation tax-free.
- 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.
- to provide funding to guarantee the sale of a business interest in
the event of the death of a shareholder.
- 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.
- to provide the funding needed to replace specialized or important
services of a key employee.
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
Inexpensive Premiums Escalate
Owner Determines Deposit Level
Equity grows tax free
Coverage Terminates prior to life expectancy
Coverage for life
Coverage for life if paid for life
Critical Illness Insurance
| Long Term Care Insurance