|
For decades, permanent life insurance has been a trusted investment choice for successful entrepreneurs and incorporated professionals, offering capital protection, wealth growth, and estate advantages.
TFSA, RRSP, and Canadian life insurance offer three different tax-advantaged investment opportunities in Canada. For business owners and incorporated professionals, corporate-owned life insurance stands out as the unique strategy to build wealth tax-efficiently. Life insurance is a powerful tool for fortifying an estate plan and ensuring that the legacy endures. |
|
Permanent life insurance should be viewed as an investment, not an expense.
Premiums paid into a permanent life insurance policy build an investment fund. This fund grows tax-free. The death benefit and CDA are tax-free. It’s all about the CDA. The death benefit payout creates a credit to the capital dividend account for tax-free dividends to shareholders, or to their estate. Why? Because life insurance works this way in Canada. What’s the outcome? An alternative investment wrapped in life insurance worth understanding. |
|
Life insurance can help safeguard your legacy.
Even the most prosperous families have seen their legacies unravel. In many cases, the death of a family member triggers significant tax liabilities. Without proper estate liquidity planning, surviving family members are often forced to sell core assets simply to satisfy the Canada Revenue Agency. In other situations, outdated shareholder agreements create underfunded obligations upon an owner’s death. With insufficient corporate retained earnings, surviving business partners and heirs can become mired in costly, drawn-out legal disputes. Partner with Legato Wealth—and, when appropriate, our trusted legal and tax accounting professionals—to help ensure a smooth, secure legacy transition. |