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CNBC Vedio: Whole Life as Alternative to the Stock Market
Participating Whole Life Insurance as an Asset Class
Balancing to Reduce Risk
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Jake Jun Qiao, Certified Financial Planner (CFP), Chartered Life Underwriter (CLU), Member of Million Dollar Round Table (MDRT). Please contact me for any financial planning inquires.

 

Position: Home - Life Insurance - Whole Life Insurance - Participating
Participating Whole Life Insurance as an Asset Class

Stability without sacrificing long-term growth

Like many Canadians planning for retirement. Will wants to ensure his accumulated wealth remains secure. He’s concerned the current low interest rate environment will leave his portfolio short when he retires. Will also wants to transfer the full value of his assets to his children at death. Will and his advisor have determined his permanent life insurance need is $750.000.
 

Meet Will

 
Will. 50. runs a successful sub-contracting business, he plans to retire in I5 years and wants to ensure his assets are positioned for both long-term growth and protection in the event of market downturns.
 
The challenge
 
Create a diversified, stable pool of assets without sacrificing long-term returns or cash accessibility.
 
■ Will's current portfolio of guaranteed investment certificates (GICs) and conservative investments offer little in the way of returns.
■ Equities offer return potential but are volatile.
■ Real estate can provide long-term growth opportunities but lacks sufficient liquidity.
■ Will wants to ensure his asset mix is delivering a tax-efficient result.
 

The solution

 
Participating whole life insurance gives Will significant long-term growth potential while diversifying his assets through access to the Participating Account.
 
Will purchases a $750,000 participating whole life insurance pay policy with the Plus premium benefit. He selects paid-up additional insurance as the dividend option.
Participating whole life insurance emphasis on short-term values gives Will additional flexibility to access cash in the first few years of his retirement.
Instead of rolling over his existing GICs and fixed income funds, he can transfer them to his participating whole life insurance. Total premiums are S35.930 per year, including $7,920 for the Plus premium benefit. Will plans to make premium payments until age 65 and then elect premium offset.
 

The result

 
The participating whole life insurance helps Will achieve his goals.
 

Greater portfolio diversification over time

Will has access to the Participating Account through the crediting of dividends to his policy.
 

A stable pool of assets with low volatility

The Participating Account is managed to help absorb the impact of short-term fluctuations on dividend scale performance. Once a dividend is credited, it cannot be taken away or fluctuate in value.
 
Will can leave a larger estate to his children.  Will's participating whole life insurance death benefit and the balance of his GlC/fixed income investments bring his estate value to over $2.8 million at age 85. This would be over $1.1 million more than if Will only had a GIC and fixed income portfolio.
 
 
Simply dial 416-835-8805 for details.
 

 

 

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