In many ways. But, in general terms, investment growth inside a permanent life insurance policy is not taxable. Also, life insurance proceeds are received tax-free and can create a pathway for corporations to distribute funds tax-free upon a shareholder’s death.
We utilize the products of numerous Canadian life insurance companies for our clients. We have no bias towards any particular insurance company and use the products and companies that are ultimately suitable for each client.
For permanent life insurance, we generally work with clients with a minimum budget for annual premiums of $20,000. For certain structures that we implement, the insurance premiums can be financed. On the investment side / for insurance-based investments, generally the minimum investment is $300,000.
We are compensated directly by the insurance companies when clients recognize the value in the solutions and proceed to implementation.
Affluent business owners and incorporated professionals who may benefit from further tax planning than their regular accountant provides.
Most of the clients who choose to work with us have done so because of our extensive tax knowledge. Tax is a fundamental pillar of insurance-based planning. The majority of insurance professionals are not also tax experts.