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Estate Planning and Life Insurance

Protecting Your Legacy

You want to ensure your family has the resources to pursue their dreams. No matter what the future brings, you want your family to be protected throughout their lifetimes.

A life insurance policy may be just the vehicle to provide peace of mind. Life insurance can go beyond providing a payment: the right policy can include investments and protect them from higher tax rates. That means there’s more for your family when you’re no longer around to help.

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Better Estate Planning with Tax-Advantaged Life Insurance Policies

Smart estate planning goes beyond writing a will and choosing an executor. Having a fully fledged plan will ensure that:

  • Your wishes for your estate materialize, instead of being subject to default rules applied by a probate.
  • Less money is lost to taxes and other unplanned expenses.

What most people don’t know is that some permanent life insurance plans can serve as a tax shelter, and allow more of your money to go to your family tax-free. As an added bonus, anything contained within the policy is held outside your estate, and therefore is not subject to executor and (in many cases) probate fees.

What Happens with the Right Policy in Place

While you’re alive, any assets contained within a permanent life insurance policy will grow in a tax-advantaged manner. This means you pay reduced or no capital gains taxes, depending on the asset.

When you pass away, the death benefit in the policy is paid to your beneficiaries right away, and can be used to cover things like funeral costs, debts, or other expenses.

Normally, any assets in your estate would be sold or inherited, and either your estate or your heirs would become responsible for the capital gains taxes. But when assets are contained in an eligible life insurance policy, they are handed over to the beneficiaries without being subject to taxes.

With flexible insurance solutions from Palladium, you can:

  • Maintain complete control of your policy.
  • Choose to tap into the cash value of your policy at any time.
  • Choose multiple beneficiaries, including family, friends, and charities.
  • Allocate different amounts of money to different beneficiaries.
  • Choose when your beneficiaries can access your bequest — for example, you may want to delay payment until a spendthrift adult or child is old enough to use the money wisely.
  • Add a benefit to increase coverage in case your insurance needs increase — for example, because of health issues or higher risk activities like adventure sports.

At Palladium Insurance, we pride ourselves on a long history of protecting Canadians’ financial security.