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.  

You may be wondering….

  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.

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 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.

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

Ryan Witmeyer, 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.

  • Buy other assets

  • Reduce tax

  • Increase cash flow

  • Provides liquidity for an opportunity/emergency

  • Coverage for premature death

“ 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

Interested in more information on this topic?

Contact us or learn more in our Top 20 Q & A’s with Ryan Witmeyer and John Robinson. Both Ryan and John have deep expertise in business value enhancement and wealth protection strategies.  Their answers provide a detailed look at why  and how permanent whole life insurance optimizes wealth for business owners by getting their money working in many ways. Tax free investment gains can cover tax debt at death, decrease taxes, reducing risk while delivering reliable returns, protect family, provide liquidity, income & growth and maintain control & flexibility of funds for business investment.