A TAKE-AWAY TO HELP BUILD YOUR LEGACY

Brian Taub, CPA, CGA - Financial Security Advisor - Jul 20, 2021

As a financial security advisor for Canada Life, I would like to share this story. I am confident you will appreciate the following:

A true story… Both my children received an inheritance from their great-grandmother when she passed away at the ripe old age of 93, almost 20 years ago. The sum of $10,000 was placed into a trust until their 18th birthday. Consequently, each of my children received approximately $17,000. Not a bad sum for a youngster. Unfortunately, not all young persons are consciously aware of what to do with a nice tidy sum of money. This brings me to my main point. What if their great-grandmother would have invested the $10,000 into a Participating Life Insurance Policy.

Let us compare: (For Illustration purposes we have selected the plan type as “Estate Select Max”, paid up in 20 years)

What would happen if we invested that same $10,000 in a participating life insurance policy.

After 20 years, the Cash Surrender Value = $4,719 & the Death Benefit = $45,741

After 40 years, the Cash Surrender Value = $22,638 & the Death Benefit = $84,876

What would happen if we invested $100,000 in a participating life insurance policy.

After 20 years, the Cash Surrender Value = $71,314 & the Death Benefit = $691,283

After 40 years, the Cash Surrender Value = $342,121 & the Death Benefit = $1,282,721

Having participating life insurance provides several key features for the policyholder/life insured:

  1. First & foremost, it is life insurance!
  2. It is yours for life. (Tax-free rollover to your grandchildren)
  3. It helps you grow wealth.
  4. It has tax advantages.
  5. Gives potential dividends.
  6. Can be used as a loan.
  7. Can be used as collateral to obtain a tax-free loan while keeping your life policy intact.

With only a phone call away, I would be more than happy to start a conversation.