Parents Plan

Parents Plan
overview

Parent Plan is an insured retirement strategy that will address your dual need for insurance & retirement income supplement. The power of compounding works by growing your wealth exponentially and investing at young age since time has the power in the formula. Parent Plan is a Universal Life Insurance plan that provides you with: Life insurance to cover outstanding mortgage or loan in case of sudden death. Retirement annual income from Age 66 to 80. Cash value in case of any financial need or emergency.

Life Insurance- almost everyone has a need for life insurance protection. It provides the security of knowing that loved ones and / or business interests have been looked after. In addition to the life insurance protection provided by an exempt policy, significant cash values can accumulate within the policy. Accumulation- within limits set by the Income tax Act (the “Act”), values in an exempt life insurance policy accumulate on a tax-deferred basis. Depending on the amount of insurance purchased, a significant value can build inside the policy and remain exempt from annual taxation. Access- the accumulated value in your exempt life insurance policy is an asset. You can use your life insurance policy as collateral security for a bank loan. Depending on a number of variables, it is possible that the interest expense associated with this bank loan could be tax deductible.

Once you’ve determined your need for life insurance, consider purchasing one of exempt life insurance policies suited to maximizing growth within the policy. Your insurance advisor can help you select the policy that meets the particular needs and circumstances of your situation. The purchase of policy creates the option for you to use it in the future as collateral security for a bank loan. In addition, the benefits provided by the life insurance policy are available from the day the policy goes into effect. Your insurance advisor can provide more information, including an explanation of how the values in the policy will accumulate and what the death benefit is. At a point in the future, the life insurance policy may be used as collateral for a loan from any Canadian bank. Loan advances will generate a cash flow to you that can be applied in a number of different ways, including supplementing retirement income, buying out a retiring partner or shareholder, or a variety of other investment applications.