Skip to content
News & commentary

Permanent Life Insurance… an effective estate transferring strategy

Home News & Commentary Permanent Life Insurance… an effective estate transferring strategy
Image of Robert Luft

Robert Luft

Do you have a non-registered investment portfolio that you would ultimately like to pass on to family/ beneficiary(ies) upon your demise? Do you want to ensure that this money is transferred to your beneficiary(ies) in a tax efficient manner? Do you also want to ensure that you never lose control of this money while you are alive?

If you answered “yes” to any of these questions, then you should consider looking into permanent life insurance.

One strategy used to get all of the aforementioned accomplished, would be to spend 1-2% of the value of your nonregistered investment portfolio every year to fund a permanent life insurance policy. This policy will provide a lump-sum tax-free benefit to your beneficiary(ies) outside of your Estate, which means that it cannot be contested. As this policy will not be included in your estate, it will also be paid out to your beneficiary(ies) before your estate will ever be settled. By using funds from a fully taxable portfolio to fund a tax-free insurance policy, you can effectively reduce the amount of tax that your estate would otherwise owe.

Contact Jon Glougie if you would like to learn more about this strategy or to discuss any aspect of your insurance, estate or risk needs.

This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of HollisWealth®. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

April 2021 Portfolio Management Team Update

With the TSX Composite, S&P 500 and Dow Jones Industrial Average reaching new record highs in March, global equities added to their February gains to finish the first quarter on a strong note and record their fourth straight quarterly advance. The TSX Composite rose 3.6% in March for a Q1 gain of 7.3%. For the […]

Read more

Risk Management – Portfolio Insurance

All financial plans are a great way to plan for your future, but unless you are including a risk management component to your plan, you are leaving yourself exposed to potential risks that may render your plan useless. Let’s be honest, how often does life go as planned? Whether you are still working and saving […]

Read more

March 2021 Portfolio Management Team Update

Market & Economic Environment The global equity rally resumed last month after a brief hiatus in January, with North American indices trading at new highs before surging bond yields in the last week of February triggered a pullback. The TSX advanced 4.2% in February, driven by robust gains in multiple sectors – information technology (+9.9%), […]

Read more