Work with an experienced Ontario life insurance agent who looks beyond the policy to find the right solution for your estate, business, and family. The goal isn’t to buy more insurance. It’s to find the right strategy to preserve more of what you have already built.
“It’s a great feeling knowing my family will be OK financially when I pass away.” -Andy L., Ontario
Look beyond traditional insurance to find better solutions for complex problems.
Compare strategies and insurance solutions before deciding what works best.
Coordinate insurance with your estate, tax, business, and family objectives.
A good life insurance agent helps determine how much coverage you need, what type of insurance is appropriate, and how it should be structured.
An independent insurance broker can generally compare products from multiple insurers, while an agent associated with one insurer may have a more limited product selection.
At SWPP, however, we believe the analysis should begin before choosing an insurance company or policy. Through our Living Estate Plan process, we examine your estate, taxes, investments, business interests, real estate, and family objectives, then compare the available strategies to find the right solution for your specific needs.
The best time to speak with a life insurance agent is before you need the insurance, because age and changes in health can reduce your options or make coverage significantly more expensive.
It is especially important when your wealth is growing, you own a business or significant real estate, or you are beginning to think seriously about estate taxes and what your family will inherit.
Knowing your options today gives you time to plan rather than leaving your family with limited choices later.
Independent agents or brokers can generally access products from multiple insurance companies, allowing them to compare policy features, pricing, and solutions for their clients.
Captive agents primarily represent a particular insurance company and generally recommend products available through that insurer.
Estate planning insurance advisors look beyond the death benefit and coordinate insurance with taxes, investments, trusts, corporations, succession planning, and the amount ultimately transferred to your family.
Business insurance advisors help owners protect against key-person risks, fund shareholder agreements and succession plans, provide estate liquidity, and structure personally or corporately owned insurance appropriately.
At SWPP we specialize in helping business owners, real estate investors, and families with complex estates to preserve their wealth.
| Type of Agent | Insurance Options | Best Suited For |
|---|---|---|
| Independent agent | Policies from multiple insurers | Anyone wanting to compare coverage, features, and pricing |
| Captive agent | Primarily policies from one insurer | Someone who prefers a particular insurance company |
| Estate planning insurance advisor | Insurance coordinated with tax and estate strategies | Families with substantial assets, complex estates, or significant future taxes |
| Business insurance advisor | Insurance structured around business and shareholder needs | Business owners, partners, and incorporated professionals |
Policy costs, guarantees, cash values, and tax consequences depend on the specific policy and how the corporation structures and uses it. An Ontario business owner should obtain advice based on the corporation’s needs and financial circumstances.
Important times to speak with an agent include marriage, having children, buying a home, starting or growing a business, acquiring substantial investments or real estate, approaching retirement, or discovering a significant future estate tax liability.
For higher-net-worth families, an insurance review is particularly important when you want to determine whether using some of the money you already invest differently could create the tax-free dollars your estate will eventually need.
After more than 35 years in financial services, one thing I have learned is that the policy should never come before the problem.
I don’t believe the first question should be, “How much insurance can I sell you?” It should be, “What financial problem are we trying to solve, what are all the available solutions, and which one leaves your family in the best position?”
Sometimes permanent life insurance becomes extremely powerful because tax-sheltered growth and a tax-free death benefit can create substantially more estate value from money you were already investing elsewhere.
EXAMPLE
Simon and Judy had previously been shown an insurance strategy requiring $500,000 annually for 10 years and providing approximately a $6 million death benefit.
After reviewing their entire estate and projecting their current and future tax liabilities, we developed an alternative strategy using the same planned deposits with permanent insurance and an IFA structure, creating projected total insurance benefits of approximately $12 million, including additional protection of $1.5 Million for Judy if Simon died first.
The IFA allowed borrowed funds to remain available for their real estate investments. At death, the insurance was designed to provide liquidity for the loan and estate taxes while preserving substantially more wealth for their family.
We structured participating whole life insurance funded with $250,000 annually for 10 years, with a projected death benefit exceeding $7.8 million by year 10.
The insurance created the liquidity needed to fund his estate tax while preserving substantially more of the corporation and estate for his family. With the insurance instead of using $7.8 million of corporate money to fund the $3.8 million in taxes it cost them less that $2.5 million incorporate money. This is a savings of $5.3 million of corporate assets. And, it would cost them even less if they used an IFA arrangement.
Ontario life insurance agents must be appropriately licensed, and consumers can verify an agent through the Financial Services Regulatory Authority of Ontario (FSRA) public licence search. You should confirm both the individual’s licence status and the types of insurance they are authorized to sell.
Look beyond how many insurance companies or products an agent represents and ask about their experience solving situations similar to yours. If you have significant assets, corporations, real estate, or estate tax exposure, look for an advisor who understands how insurance works alongside tax, estate, investment, and succession planning.
Life insurance agents are typically compensated by the insurance company when a policy is purchased, so clients generally do not pay the agent a separate fee for arranging the insurance. However, estate, tax, legal, investment, or other professional planning services may involve separate fees, which should be clearly disclosed before you proceed.
Do you need life insurance? Get started with a zero-obligation life insurance and estate planning consultation today.
SWPP helps Ontario business owners use corporate-owned life insurance to protect their companies, manage future tax liabilities, and transfer more wealth to the next generation. During our 35 years experience we’ve helped hundreds of families protect millions of dollars from taxes.
At SWPP, we are licensed and recognized advisors. Our goal is to protect your family’s money and assets. We help families, business owners, and real estate investors do comprehensive estate planning in Ontario.
We’re focused on making sure you leave the most for your loved ones instead of giving your hard-earned assets to CRA.
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