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Smart Investment thru Life Insurance Tax Shelter

Smart Investment thru Life Insurance Tax Shelter:

Smart Investment based on investment objectives, asset mix in your portfolio, risk tolerance and time horizon in order to achieve your goals.

The life insurance industry is a tax haven, and will likely always enjoy that status, because of all the special laws created just for it. You can spend time wondering why, or you can use their heavily favoured status to your advantage!

Over the last 20 years Canadians have stuffed millions and millions of dollars into these programs. The reason is that they allow either Tax-Deferred or TAX-FREE treatment of your investment dollars, with no risk. It's the best tax avoidance investment strategy available!

Revenue Canada allows insurance companies to issue these plans and maintain their tax-sheltered status as long as they satisfy certain conditions.

These plans are considered "exempt" by Revenue Canada under sections 12.2 and 148 of the Income Tax Act. The insurance company must maintain a minimum amount of life insurance on each plan to keep it tax exempt.

There is a safety net with insurance which means that if you die before you can spend or withdraw all of the money in your plan, the balance of your account, plus the insurance face amount, is paid to your beneficiaries on a tax-free basis. The other benefit is that insurance payouts also avoid probate fees thus allowing you to earn TAX-FREE income from the plan in retirement and after you are gone.

For a free consultation please call: (416) 953-9947.

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