Whole Life Insurance

 

Whole Life Insurance

 

Whole life insurance provides coverage for an individual's whole life, rather than a specified term. Same amount of premium is paid each year during the entire lifetime of the insured.

This is a good choice if:

• You want to leave a heritage for your loved ones
• You want to be capable of staying insured irrespective of what happens to your health.

 

Canada Insurance Coverage is one of the leading companies from Toronto that can offer you Whole Life Insurance!

The main benefits of the Whole Life Insurance are stated under:

1. Fixed cost as your premium will never rise
2. You are covered for whole life
3. Policy pays a dividend
4. Option to Have the Insurance Company Pay Premiums if You Become Disabled
5. You can be purchased as an only product or in combination with other life and
    health insurance products
6. Can borrow from your policy
7. Cash value can be used as guarantee
8. Cash value is exempt from creditors

 

There are few tips for using whole life insurance in such a way that might make sense for you.

1. Tax-sheltered accumulation: Assets inside an insurance policy can add-up free of annual income tax and this sheltering allow for greater growth than when using similar mediums.

2. Reliable returns on investment: Most of the Canada's life Insurance Companies offers whole life insurance policies with a very high stability of returns in form of dividends paid on the growing balances inside these policies. The low volatility of returns, along with the tax-free payouts upon the death of the insured can create attractive internal rates of return.

3. Insured legacy of shares: Shares of a shareholder in private company can be donated to a charity. Using life insurance, it is then easy to redeem the shares donated to the charity to provide cash to the charity resulting in abolition of tax on the private company.

4. Pulling out funds from a holding company: Many people add-up large assets inside holding companies, often the result of profitable businesses. Whole Life insurance is used to create a tax-free "pipeline" from the holding company to the shareholders as the result of the "capital dividend account" that can be created when a holding company is the beneficiary of a life policy.

5. Flowing assets to future generations: Large assets with current generation, when change hands from one generation to other, the tax liability can be large. Whole Life Insurance creates an opportunity to move assets from one generation to the next free of tax when the life of the next generation is insured by the current generation.

6. Constructing a basis of cash: Some families use whole life insurance as a mean to build up assets and achieve attractive after-tax rates of return. While assets can be withdrawn directly from these policies, you can borrow against the policies to access cash.

7. Covering taxes on death: As Whole Life Insurance pays out tax free upon the death of the insured, it is a useful tool to provide cash at the time of death to satisfy the tax liability.

8. Reducing the value of a corporation: The higher the value of companies' assets at the time of death, the higher the potential tax-liability that might arise. You can purchase a Whole Life Insurance policy on "back-to-back' structure with an annuity by such a holding company with the effect that the value of the holding company is reduced, and thus the tax on those company shares are also reduced.

 

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Just call on 1.855.846.2524 and get best policies for you and your family.Just call on 1.855.846.2524 and get best policies for you and your family. you can email us on info@canadainsurancecoverage.ca

 

 

 

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