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 iA Private Wealth. 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

May 2023 Portfolio Management Team Update

May 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth May 24, 2023 Market Review Global equities moved broadly higher in April, as fears about systemic risk in the financial system receded and investors looked forward to a potential end to the interest rate-hike cycle. The TSX Composite gained […]

Read more

April 2023 Portfolio Management Team Update

April 2023 Portfolio Management Team Update  By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth April 25, 2023   Market Review  Global equities were mixed in March, as concern about systemic financial risk led many indices lower. U.S. indices bucked the trend to post gains – despite two of the largest bank failures in […]

Read more

March 2023 Portfolio Management Team Update

March 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth March 23, 2023 Market Review Global equities declined in February, paring part of January’s stellar gains, as stronger-than-expected economic data fueled concern that major central banks were not yet done with monetary tightening, sparking a broad selloff across asset […]

Read more