You can offset costs that are incurred at death and preserve your estate by having insurance proceeds pay them for you. Taxes, liabilities, estate-related and other future costs can all be offset by your permanent insurance coverage. By taking advantage of the preferred status of tax-exempt life insurance, you can maximize the value of your assets and maximize the value being transferred to the next generation. Living benefits insurance is also vital to estate preservation, by ensuring funds are available should you require them at a time of illness.

Tax-exempt insurance can eliminate the annual taxes you pay on your investment growth, as well as those payable when you die. Individuals tired of being punished for strong earnings may appreciate this tax-protector opportunity. The long-term value of these products is that their earnings can often greatly eclipse what would otherwise be earned through regular investing.

If part of your portfolio is held in GICs, Canada Savings Bonds or a bank account, you have probably never given a second thought to market fluctuations. Sticking to a conservative investment strategy can lead to peace of mind in the short term, but it may put you at risk in the long run. Essentially, you risk outliving your retirement savings. Generally speaking, one way to ensure that you have enough money to meet your retirement needs is to diversify your portfolio. You can get the security of a GIC and the performance potential of the stock market without needlessly risking your hard-earned savings with segregated funds.

In the case of partnerships, the death or disability of one partner can have a devastating effect on the survival of a business. Insurance can provide an excellent method of funding buyout agreements so that the remaining partner takes full control of the business and the surviving family is properly compensated.

For companies that wish to retain top employees, the shared ownership of a permanent insurance policy can be an attractive opportunity. It protects the company against the death of the employee, and motivates that person to remain with the firm through the enticement of an attractive, low-cost retirement asset. This arrangement can create a win-win situation for everyone.

If corporate assets are invested in fixed income, then an insurance strategy can not only reduce its taxable income but it will lower the value of the business by the amount of the investment, thereby reducing the inevitable capital gains tax liability.