Life Insurance Investment

When it comes to life insurance, many people think of it as a way to replace income in the event of their passing. While this is true for term insurance, permanent life insurance has become a popular investment tool for wealthy Canadians and large corporations.

Permanent life insurance offers an attractive alternative to low-risk, low-yield, and highly-taxed investments like bonds and GICs. It provides a worry-free investment option that can grow at a rate exceeding 10%. The best part? The growth is tax-free. This means that you can access the accumulated funds without worrying about taxes and pass them on to your loved ones and favourite charities tax-free.

The unique tax treatment of life insurance policies under Canada’s Income Tax Act makes it an essential component of succession planning. It offers tax minimization and elimination strategies that can help preserve and transfer wealth efficiently.

Investing in permanent life insurance also opens up opportunities for other financial strategies. For example, it can be integrated with individual pension plans (IPPs) and used in charitable planned giving to maximize tax benefits and leave a lasting legacy.

By choosing life insurance as an investment, you not only protect your financial future but also contribute to causes you care about. It’s a win-win situation.

If you’re interested in exploring the benefits of life insurance as an investment, our team at CRM Financial is here to help. We offer tailored solutions to meet your specific needs and guide you through the process. Contact us today for a no-obligation consultation and take control of your financial future.