1. CASH ACCUMULATION in reference to either a permanent participating life policy whereby the owner pays a monthly premium and the issuing company, pays the owner a dividend based on yearly company profits, the policy owner shares profits!

a universal life insurance policy which is part insurance protection and part investment, same idea as a perm-par-policy but the investments are carefully selected at the beginning of the contract and can be changed at any time afterwards while the policy is in force. The client receives market-linked gains if the selected investments perform positively, or losses if those same investments perform negatively.

 

2. TAX-EFFICIENT because as is true with any insurance policy whether life protection, critical illness, disability and others, the proceeds are exempt from taxation and this is the single reason why insurance policies are considered tax efficient.

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3. WITHDRAWAL of cash within an insurance policy triggers a tax event, you have to pay tax on your gains,.however, if you were to borrow money against the accumulated value within that policy you would be exempt from taxable gains because loans are non-taxable!

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4. BENEFICIARY (S) naming a beneficiary or various beneficiaries is at the discretion of the policy owner ( which is usually, but not always, the insured ), a beneficiary can be an individual or a legal person ( corporation ) or a charity/non-profit organization. The most direct way for the beneficiary (s) to receive the death benefit would be by naming a beneficiary on the insurance contract itself, highly recommended. Another way is to name the estate as the beneficiary on the insurance contract and then stipulate on the last will and testament who should receive the proceeds of the insurance contract, this is not recommended as an estate must go through a process which can be time-consuming and at times, complex. Legal persons or corporations and non-profits must have a valid right-to-operate license/permit, without one they don't exist in the eyes of the law.

-Read Article/Advisor.ca

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DISCLAIMER: This site and all information contained within it is for the sole purpose of providing general financial education.

This site is an effort to showcase and describe what services I provide as a licensed financial security advisor, the products I can offer, and some strategies that I use to help with the needs of clients. Every attempt has been made to ensure the accuracy of statements, if you notice a possible error please send a message and a description of the error using the "contact" button at the bottom of every page, I will review and make any necessary changes. Insurance should be specific to the need or needs of each individual client. Investing in the markets is not without risk, you can lose a portion or all of your capital invested. A financial needs analysis is used as a tool to identify and provide the proper insurance to cover the need or needs of a client. An investor profile is used to identify the risk tolerance and financial knowledge of a client before any investment recommendation can be made. Any external link provided on this site is for the reader to further read and learn regarding financial topics, I do not control or manage those external links and can not be responsible for any erroneous information contained therein.