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:
- First & foremost, it is life insurance!
- It is yours for life. (Tax-free rollover to your grandchildren)
- It helps you grow wealth.
- It has tax advantages.
- Gives potential dividends.
- Can be used as a loan.
- Can be used as collateral to obtain a tax-free loan while keeping your life policy intact.
I'm only a phone call away (416-738-6342), and I would be more than happy to start a conversation.
You can also book a 15-minute coffee chat by clicking on the link.