Insurance for Canadians
Protect everything you've worked so hard to create
You’ve invested a great deal in your career. Now, a successful career is allowing you to accumulate assets. Protecting your income and preserving those assets throughout your life and beyond will be fundamental to your financial plan.
Insurance can be used in both traditional and innovative ways to help you build, protect and share your wealth. Whether it’s providing income when you’re unable to work or reducing your tax burden, insurance can help you achieve your financial goals.
Corporate-Owned Life Insurance
Life Insurance: Why would a business owner want it?
The traditional perception of life insurance is that it is a financial product providing income replacement at death, funding tax liabilities, partnership buyout agreements, covers key people in an organization or is used to equalize an estate.
Most ultra-high net worth Canadians are sufficiently self-insured by virtue of their assets. They feel, and rightly so, that they don’t need insurance for traditional risk mitigation purposes.
That said, corporate-owned life insurance can be used by wealthy individuals as a tax effective way to accumulate passive wealth inside a company, to access that wealth tax-free and to transfer it tax-free to surviving beneficiaries.
The Problem
In many businesses, the retained profits or surplus cash are invested in taxable investments. This is often the case when the business owner doesn’t need the extra income and has a higher marginal tax rate than their business. Consequently, they take advantage of the low corporate tax rates on active business income by saving money in their corporations, if they don’t require it for personal purposes. This accomplishes a tax deferral, but eventually these assets will come out of the corporation and be taxed at high dividend tax rates, depending on the taxpayer’s post mortem planning.
The Solution
A solution to this problem is to invest some of the retained profits in tax exempt permanent life insurance. There are two main benefits to making such an investment, namely:
- The savings component of the life insurance policy can grow on a tax-free basis; and
- A significant portion, if not all, of the policy proceeds payable at death can be paid to the shareholder’s estate as a tax-free capital dividend.
Why corporate-owned lifeinsurance is a powerfulplanning tool ?
- Tax-advantaged growth inside the policy,
- Access to the cash in the policy duringyour lifetime,
- Leveraging the cash in the policy to reinvest in other ventures,
- Tax Advantaged Retirement Income,
- Investment growth inside the policy will not impact the small-business deduction,
- Save tax by contributing after-tax corporate dollars (instead of personal ones),
- Most of the death benefit, if not all, is recieved by heirs tax-free.
Why Wealth Guardian Group
Comprehensive Coverage Options
We offer a wide range of insurance products tailored to meet diverse needs.
Empowerment through Education
We prioritize client education, ensuring you understand the Infinite Banking strategy and how it can optimize your wealth accumulation and financial security.
Personalized Consultation
Each client receives one-on-one attention to precisely identify and address their specific insurance needs.
Ethical Integrity
Integrity is the foundation of our practice. We uphold the highest ethical standards, always putting your interests first and maintaining transparency in our recommendations and actions.
Commitment to Long-Term Success
Beyond initial implementation, we remain committed to your financial well-being, continuously adapting and refining your Investment strategy to meet changing circumstances and maximize benefits over time.
Dedicated Claims Support
Our responsive claims handling process ensures that you receive prompt and fair service when you need it most.
Ready to take your first step towards financial Success?
