We understand that creating wealth and managing it effectively is only part of the equation. Preserving it is also important. By making use of insurance strategies, we can help our clients preserve their wealth throughout their lives and protect the value of their estates for their families and other beneficiaries. Insurance strategies can also help maximize the wealth they pass on to their heirs.
Estate creation and preservation
It is possible to offset the costs incurred at death and preserve an estate by making sure these costs are covered by insurance. Taxes, financial commitments and estate-related or other future costs can all be offset by permanent insurance. By taking advantage of the privileged status of Tax-Exempt Life Insurance, it is possible to maximize asset value and optimize the amount transferred to the next generation. Living Benefit insurance is also essential for preserving an estate by making sure funds are available in case of illness.
Reducing taxes to a minimum
Tax-exempt insurance can eliminate annual taxes on growth in investments as well as the taxes payable upon death. Individuals who wish not to be penalized when they realize major gains may appreciate this Tax Protector possibility. The long-term advantage lies in the fact that gains often may substantially exceed what regular investments would otherwise earn.
Estate maximization and protection
If a portfolio consists partly of GICs, Canada Savings Bonds or bank accounts, market fluctuations are not a concern. Strict application of a cautious investment strategy may guarantee peace of mind in the short term but may cause exposure to risk in the long term. This risk is due essentially to the chance of living beyond what accumulated retirement savings can provide for. One common way to ensure that sufficient money is available to meet retirement needs consists of diversifying the portfolio. It is possible to obtain the security of a GIC and the yield potential of stocks without hard-earned savings being exposed to unnecessary risk, through Segregated Funds.
Income enhancement
Some solutions relying on insurance products may produce additional cash flow, thereby Maximizing Retirement Income. The net income derived from this strategy may be substantially higher than what can conceivably be obtained with traditional fixed-income instruments, especially in times of low interest rates.
