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