Insured Retirement Strategy

Insured Retirement Strategy

• Client Profile
  • RRSPs are maximized, through contributions, or due to pension adjustments.
  • Free of non-deductible debt.
  • Client attracting highest marginal tax rates, with an underlying need for insurance.
  • Generally require at least 10 years from date of last deposit until date of first “withdrawal”.
• Solution Opportunity
  • Client purchases and overfunds UL contract, which allows for over contributions to grow in a tax-sheltered environment.
  • Face amount is minimized to keep costs low.
  • Loans or line of credit from a bank or other financial institution are received tax-free by client, and used to augment retirement income.
  • Upon death, loans are repaid from cash values; face amount is paid to beneficiaries.