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Corporate Insured Retirement Program
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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 - Non-Participating
Corporate Insured Retirement Program

When opportunity knocks will your company’s door be closed?

The Corporate Insured Retirement Program combined with Performax Gold may be the key to keeping your options open.
 
Here’s the problem …
 
Most business owners agree that their corporation needs life insurance protection. They also understand that they need liquidity … quick access to cash. What most business owners don’t realize is that corporate-owned life insurance can meet both of these needs. 
 

What are your options? 

Many companies that purchase life insurance (for example, to cover the loss of a key person or fund a buysell agreement) also have funds to invest. Often, these funds are used to purchase investments subject to annual taxation at high corporate investment tax rates. The Corporate Insured Retirement Program is an innovative alternative.
 
This program provides the business with permanent insurance protection, access to a tax-deferred investment vehicle and tax-free use of the investment funds. It is a planning opportunity that offers flexibility, security and liquidity.
 

How does it work? 

Under the Corporate Insured Retirement Program, excess corporate funds are invested in an exempt life insurance policy where they grow tax-free to create significant cash value in the policy. At a point in the future, when the company needs cash (for example, to invest in a new business venture or fund the buy-out of a retiring shareholder), the cash value of the corporate-owned policy is used as collateral for a bank loan.
 
The bank loan provides the company with the cash needed – tax free. And if the loan is used for investment purposes, the loan interest may even be tax deductible. The bank loan need not be repaid until the life insured person dies. At that time, the taxfree death benefit is used to repay the loan and any remaining death benefit is available to the corporation to be used for other purposes.
 
 

The Performax Gold solution 

Manulife Financial’s Performax Gold product is an affordable way to fund the capital gains tax liability that occurs on death. Performax Gold also allows for extra deposits into the policy that grow on a tax-deferred basis. This gives a company the opportunity to take its tax-exposed investment funds and put them in the policy where they grow on a tax-sheltered basis. And the company then has access to a portion of the policy’s values if it needs cash in the future.

 

Live your whole life 

Performax Gold is easy to manage and offers incredible flexibility not typically associated with whole life:
 
■ Cover a number of lives under one policy
■ Increase, decrease or add new coverage as your needs change
■ Policy fee charged for only 15 years
■ Receive a Performance Credit which is an amount the policy earns on each anniversary that increases the policy’s values
■ Option to add the Early Cash Value Enhancer rider to increase your guaranteed cash values in the first 20 years of coverage
■ Make additional Deposit Option payments on a tax-deferred basis to build up policy values faster*
■ Switch from a shorter to a longer pay duration at rates that were in effect when your coverage was first issued
■ Healthstyles underwriting that reflects your good health with lower policy costs
 
Simply dial 416-835-8805 for details.
 
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