Corporate Pension Augmentation

The advantage of tax-sheltered growth within a Universal or Whole Life plan allows corporations to structure pension augmentation for executives.

By over funding the insurance requirements the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.

Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.

The advantages to these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit with out having to pay personal income tax. In corporate arrangements the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

People are living longer than ever. Medical advances have increased life expectancy considerably.

Many people fear they'll outlive their assets and are concerned about becoming a burden on family when they can no longer take care of themselves. These concerns may become more complicated by the uncertainty associated with the ability of our government to provide affordable access to long term care.

Long term care policies typically provide a daily benefit amount to address these concerns. To collect benefits the insured must be a resident in long term care facility and suffer the loss of ability to perform the essential activities of daily living such as; bathing, eating, dressing, toileting and transferring.

Private long term care policies where recently introduced to Canada through Life Insurance Companies. Internationally, these policies have become very popular with consumers.