Owner of a profitable company?

Here’s how to reduce taxes & safeguard wealth

With minimal volatility, a predictable rate of return, tax reduction benefits and estate protection, Canadian business owners are taking advantage of participating life insurance. Why? Changes to Canadian tax laws combined with lower than optimal returns on fixed return asset classes like GIC’s or bonds have savvy investors looking to participating insurance as a way to get their money working for them in more ways than one.

 Benefits for Living

Tax advantaged investment gains from participating permanent insurance delivers reliable investment returns, protects family, provides liquidity, income & growth allowing great flexibility of funds for business investment throughout life. It can also cover cash requirements at death, decrease taxes and reduce risk.  

Key takeaway: Participating life delivers ‘living’ benefits: liquidity, tax savings, guaranteed returns, income & growth.

You may be wondering:

  1. Who can benefit most?

  2. How come I haven’t heard of this before?

  3. How does it work?

With their complementary service offering, John Robinson and Ryan Witmeyer will work together and with other trusted advisors, to support the goals of business owners through value enhancement and wealth protection strategies. The objective: business owners will exit their enterprise with enhanced valuations and enter retirement with optimized wealth outcomes.

Here’s a quick Q & A on some common questions about the tax reduction benefits associated with participating life insurance.

1. Who can benefit most from an investment strategy that includes participating life insurance?

The use of participating life as part of an overall wealth plan is best suited for someone that has consistent cash flow or investable assets that can be transferred. If you’ve got 5 or more years before retirement or taxable investments within a corporation, it is a wealth protection tactic that should be considered. Learn more about this topic on our in depth Q and A with John and Ryan.

Taxation is the biggest challenge to wealth accumulation and permanent life insurance helps to overcome this challenge.”

Ryan Witmeyer, Strategic Succession

2. Why haven’t I heard about the tax saving benefits of participating life insurance before?

With recent changes to Canadian tax laws impacting strategies such as income sprinkling and punitive tax on annual passive income in corporations over $50k,  participating life policies within a corporate holding company has become a way to retain more income through tax reduction. And frankly, most advisors aren’t familiar with properly structuring a permanent life investment strategy.

“ Participating life as a unique asset class has some of the best returns in the risk management arena. Growth has been stable over many decades with the variability/volatility  being less than the consumer price index in Canada.”

John Robinson, Strategic Succession

3. How does an investment strategy with participating whole life insurance work?

Properly structured, participating life insurance is an ideal vehicle for saving. It allows your money to work for you in different ways;  safely, with guarantees, flexibility, liquidity, providing control and tax advantages.

  • Used to buy other assets

  • Reduce tax

  • Increase cash flow

  • Provides liquidity for an opportunity/emergency

  • Coverage for premature death

Interested in learning more? Click here for 20 in-depth Q and A’s. You’ll find more information on how to accumulate wealth through participating life insurance as part of your overall investment strategy. Or, contact John Robinson or Ryan Witmeyer to get answers to your questions.

Meet Ryan Witmeyer:

As a wealth strategist, Ryan specializes in de-risking companies and creating low-risk tax-sheltered capital pools to enhance business value and increase flexibility for business owners. He is a numbers and strategy guy at heart, calling on his experience as a Certified Financial Planner (CFP), a Chartered Investment Manager (CIM), Chartered Life Underwriter (CLU) and traditional BComm education in Entrepreneurial Management (Royal Roads University).  Connect with Ryan Witmeyer at (604) 910-8187, on LinkedIn or by email: ryan@strategicsuccession.com

Meet John Robinson:

John has been helping business owners for 35 years increase their company’s value to optimize their sale and/or succession outcomes. Maximizing enterprise value and transforming business performance from average to excellent is his specialty.  John is a Certified Financial Planner (CFP), Elder Planning Counsellor (EPC) and Certified Exit Planning Advisor (CEPA) from the Chicago-based Exit Planning Institute. Connect with John Robinson at (604) 874-4429 x 101, on LinkedIn or  by email: john@strategicsuccession.com