An Estate Bond helps give more money to your family and less to the government

Like many Canadians, your financial plan may include a portion of savings that you never plan to spend. You have invested some money that you intend to pass on to those you care about most: your spouse, children and grandchildren. The problem is this strategy’s success is largely based on the investment’s rate of return. And, unfortunately, the higher the return, the more tax you pay. This means your estate may end up smaller than you’re what you are expecting.

 What are your options?

You can continue to pay tax on the income earned from your savings or you can invest the funds using a financial planning strategy known as Estate Bond.

This attractive alternative to taxable investments offers:

  • a large, immediate estate value
  • tax-sheltered growth of cash values
  • a tax-free maturity value at death
  • reduced estate settlement costs, if you’ve named a beneficiary
  • potential for creditor protection, if you’ve made an appropriate beneficiary designation
  • liquidity, if you require it.

The Estate Bond solution

The Estate Bond moves savings from a tax-exposed investment to an exempt life insurance policy. Permanent universal life insurance policy, provides immediate life insurance protection and an investment within the policy that accumulates on a tax-deferred basis. When you die, your heirs receive the proceeds tax-free.

When you take advantage of the Estate Bond financial planning strategy, you not only increase the size of your estate, you also reduce the amount of tax you pay.

Here’s an example of how the Estate Bond financial planning strategy can provide a larger estate for your heirs.

Personal information Female, age 60, non-smoker Before tax investment rate for

alternative investment 4%

Insurance rate of return 1.50%

Initial death benefit $500,000

Deposits $30,000 per year for 10 years After tax investment rate for

alternative investment 2.20%

Personal tax rate 45%

Estate Bond Another investment alternative

Estate Bond can increase the amount of cash that will go to your heirs by over $211,500!

 Permanent Insurance – the better choice!

A life insurance solution that combines insurance protection and tax-sheltered investments in one policy.

Protection flexibility – you design the protection to meet your needs. You can choose either a simple single coverage solution or you can add riders like the

Protection Index Rider to automatically increase your protection to match a growing insurance need.

Investment flexibility – additional deposits above the minimum amount required grow within the policy on a tax sheltered basis to provide part of your

protection solution. Choose from a wide range of investment options including fixed interest, equity options and managed accounts.

You receive regular statements, including rates of return, that let you monitor your policy’s performance.

You decide the amount and number of deposits to suit your needs and cash flows.

Also published on Medium.



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