What evidence proves that life insurance is worthwhile?

Article Licenses: CA, DL, unknown, unknown
Advisor Licenses:

Compliant content provided by Adviceon® Media for educational purposes only.

Life insurance has unlimited tactical financial uses.

Life Insurance includes cash benefit payouts arising from personal life insurance, disability insurance, group life and group disability insurance; and income from annuity payments, which together have risen to approximately 40 billion dollars per year in the first decade of the new millennium.

For a person running a business, a disability insurance policy can replace up to 75% or more of the value of a disabled person’s normal working paycheque.

“Life insurance is the first foundation of wealth preservation.”

Personally owned individual life and/or disability insurance can:

1. Pay off a home mortgage if the family breadwinner dies.
2. Pay debts and taxes accrued in larger estates leaving heirs with financial stability.
3. Help small businesses using agreements pass the baton to new leaders.
4. Fund key-man insurance to replace a leader in a small business.
5. Help family businesses and farms stay in the family through succession planning while passing wealth (and paying off liabilities) to the next generation.
6. Pay off capital gains taxes on second properties such as a cottage.
7. Cover taxes due when remaining Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) holdings.
8. Pay off large capital gains on investments at home and abroad.
9. Equalize estates divided amongst siblings whose parents own significant business assets, where some work outside the firm.

The use of life insurance is increasingly creative the more wealth preservation becomes necessary and can assist in this important strategic area of fiscal protection. It can pass substantial sums of cash to future generations using techniques such as estate bonds.

The Advisor and Manulife Securities Incorporated, ("Manulife Securities") do not make any representation that the information in any linked site is accurate and will not accept any responsibility or liability for any inaccuracies in the information not maintained by them, such as linked sites. Any opinion or advice expressed in a linked site should not be construed as the opinion or advice of the advisor or Manulife Securities. The information in this communication is subject to change without notice.

This publication contains opinions of the writer and may not reflect opinions of the Advisor and Manulife Securities Incorporated, the information contained herein was obtained from sources believed to be reliable, no representation, or warranty, express or implied, is made by the writer, Manulife Securities or any other person as to its accuracy, completeness or correctness. This publication is not an offer to sell or a solicitation of an offer to buy any of the securities. The securities discussed in this publication may not be eligible for sale in some jurisdictions. If you are not a Canadian resident, this report should not have been delivered to you. This publication is not meant to provide legal or account advice. As each situation is different you should consult your own professional Advisors for advice based on your specific circumstances.