Universal life insurance is often worth it when your goals go beyond basic insurance protection and begin focusing on tax efficiency, long-term wealth preservation, and estate planning.
Bill came to me after inheriting a company and trust structure from his father. The inherited assets carried approximately $1.25 million of deferred capital gains tax liability. Bill was financially secure and did not need the assets for his own lifestyle. Instead, he wanted to preserve the wealth for his children and grandchildren while preventing future tax liabilities from growing even larger.
Mike came to me at age 67 shortly after remarrying. He owned a successful manufacturing company valued at approximately $8 million. His other assets included $900,000 in RRSPs, a home worth $1.8 million, and rental properties valued at approximately $4 million.
Putting a house in a trust can protect it from probate, saving time, money, and ensuring privacy.
The right amount of life insurance for a 40-year-old in Canada depends on factors such as income, debt, family responsibilities, future goals, and overall assets.
What happens if I outlive my universal life insurance? Yes, it is possible to outlive a universal life insurance policy if the policy is not funded properly or if the investment growth inside the policy does not perform as expected over time.
Is term life insurance better than whole life insurance in Canada? Neither term life insurance nor whole life insurance is universally better, because they are designed for different stages of life and financial goals.
Cashing out a universal life insurance policy is usually considered when the original purpose of the policy has changed or the coverage is no longer needed.
Whole life insurance may be better for Canadians who want long-term guarantees and stability, as well as predictable estate planning outcomes.
How can I set up a living trust in Canada? Before you set up a living trust (also called inter vivos trust), make sure you’re positive that it’s the right tool for your particular situation.
