How life insurance work as an Investment

financial_insider resp government grants

While non-registered investments are an option, the income and gains from these investments could be taxable,

which would dramatically decrease their returns.

The Insured Retirement Strategy from ivari uses a universal life (UL) insurance policy so your client can:

• Accumulate growth inside the policy, within tax-exempt limits, without paying income tax on the growth

• Have tax-deferred cash flow to supplement their retirement lifestyle

• Continue to have the added benefit that a universal life policy provides, including:

– Protection should they pass away or be diagnosed with an “occupational disability” or “critical condition disability” including the need for long term care

– Creditor protection

– Choice of interest options

– Flexibility to customize their UL policy with term life riders and a critical illness rider


An Insured Retirement Strategy works with an ivari Universal Life insurance policy.

This policy will serve two objectives:

1) Need to replace income or protect the value of an estate*;

2) To accumulate cash on a tax-deferred basis for future applications.


Once the optimal balance of these two objective are determined, the Insured Retirement Strategy can be best suited for those clients who:

• Have maximized their RRSP, TFSA and other registered investments and

are looking to shelter additional funds in a tax-efficient manner

• Have a long-term investment horizon (i.e. 10 years or more)

• Are generally in good health

• Are taxed in a higher tax bracket

• Are able to maintain a good credit rating


How much can a client borrow against their UL policy?

The lending institution will use other factors in underwriting the loan application. On approval; depending upon the interest options selected for where the policy cash value is invested; the maximum loan amount usually consider will be as follows:

a) up to 90% on fixed rate UL investment options,

b) up to 60% on variable interest options (i.e. equity-linked interest options).



Investment component

Accumulating fund

Cash surrender value (CSV)

Premium loan

resp government grant table.png

Follow us for updates on products and services

Plus you can insert your comments and ask question about this topic


Related articles: