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

Risk Management – Income Replacement

When most people think about income replacement, they typically think of Disability insurance. And while Disability insurance is the best way to protect your ability to earn an income while you are working, have you ever thought about who else might need your income if you passed away? In many cases, those people that are […]

Read more
Financial charts & stocks

iA Wealth Monthly Market Snapshot

Monthly Overview: The seemingly uninterrupted rally that bolstered stock prices for the first four months of the year came to an abrupt halt in May as all of the key equity market gauges we follow showed low to mid-single digit percentage losses. Despite the pullback, however, YTD returns for these same gauges through the end […]

Read more

June 2019 Portfolio Management Team Update

Market & Economic Environment: The global equity rally that had taken North American indices to new highs in April came to a shuddering halt in May, as a couple of unexpected tariff-related tweets from President Trump shattered market calm and investor complacency. On May 5, Trump tweeted that tariffs would rise on goods from China, […]

Read more