Insurance Planning

A well-thought-out financial strategy would be incomplete without insurance. Make sure you and your family are protected against life’s uncertainties. Different types of insurance can help protect you and your family in various ways against the costs of accidents, illness, disability, and death. Individual insurance needs vary greatly depending on age, income, occupation, and family situation, which is why you need a team of knowledgeable professionals to provide you with these critical financial safeguards.

Asset Protection & Legacy solutions using Insurance

Estate Preservation

Insurance can be used as an estate planning tool to help offset the costs of settling an estate. Taxes, liabilities, estate-related costs, and other future expenses can all be offset by permanent coverage. You can maximize the value of assets you intend to pass on to the next generation by taking advantage of the tax-favoured status of universal or whole life insurance. The long-term value of these tools can frequently far outweigh what would be earned through regular investing.

Estate Maximization

You can maximize the value of assets you intend to pass on to the next generation by taking advantage of the tax-favoured status of universal or whole life insurance. The long-term value of these products can frequently far outweigh what would be earned through regular investing.

Wealth Creation/Income Enhancement

If you are in the early stages of wealth accumulation, insurance can be a low-cost way to create a financial safety net. If an income earner dies, certain insurance products can provide a supplemental stream of income during retirement. This strategy’s net income may be significantly higher than that of traditional fixed-income vehicles, particularly during periods of low-interest rates.

Reduce Corporate Taxes/Increase Corporate Assets

If corporate assets are invested in fixed income, an insurance strategy can not only reduce taxable income but also reduce the value of the business by the amount of the investment, reducing the inevitable capital gains tax liability. Furthermore, by utilizing tax-deferred growth within universal or whole life insurance, corporate assets can avoid accrual taxation and grow to a much greater value than if invested in a regular account. Furthermore, upon death, the majority, if not all, of the proceeds can be paid out of the corporation tax-free. Normally, they would be paid out as taxable dividends, with approximately one-third of the value subject to taxation.

Critical Illness Protection

If you are diagnosed with a critical illness that is listed in the insurance contract, you can qualify for a lump sum, tax-free payment. This payment would protect the policyholder and their family from major changes in their lifestyle as well as the financial burden of managing and surviving the illness. If you have dependents, this type of insurance becomes even more important.

Disability Insurance for Individuals

A disability can appear suddenly or gradually (like a degenerative condition.) It has the potential to rob you of your ability to earn a living. Disability insurance is a type of coverage that protects you from losing your income if you become disabled and are unable to pay your bills. People frequently obtain Disability Insurance Policies through their jobs, similar to how they obtain Life Insurance. It is critical to review group coverage in order to fully comprehend the coverage in place (which in most cases is very generic).

Long-Term Care Insurance

Long-Term Care Insurance addresses the various health, social, and personal care needs of people who are no longer able to care for themselves. This type of insurance is reasonably priced and can be obtained without depleting your savings or jeopardizing your lifestyle. Rates for Long-Term Care Insurance is determined by your health, age, and the amount of insurance you purchase.

Annuities with Insurance

Insurance can and should be viewed as a type of investment. Insurance, when used strategically, can be used in conjunction with annuities to provide a consistent cash flow throughout your life.

Registered Insured Annuities

Registered insured annuities are a type of annuity that allows you to use registered assets to save up to 40% in taxes and provide up to 50% higher returns than investment-grade bonds or GICs.

The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions.  Before acting on any of the above, please contact your financial advisor.