Provide financial security to your loved ones and other beneficiaries when you pass away. Discover solutions that may also protect the value of your estate from taxes.
At RBC Wealth Management Financial Services, we understand how challenging it can be to think about—let alone discuss with loved ones—what will happen after you’re gone. You can help protect and prepare your family, your estate and the future transfer of your wealth by including life insurance in your plans.
For example, upon your death, your assets may trigger significant tax obligations, which are frequently met by liquidating the assets of your estate. A life insurance benefit may cover these tax obligations and leave your estate intact.
Let us help you find insurance solutions that address your unique needs.
Help give greater financial security to your family and other beneficiaries in the event of your premature death.
Term life insurance provides coverage for a temporary or short-term need and offers a cost-effective way to help offset expenses related to your passing. Terms may range from one to 30 years. Depending on your needs, these policies may offer flexibility and choice. For example, a policy may include the option to renew your coverage for another like term or convert it to a permanent plan.
Keep in mind that your term life insurance policy is an asset to you and may have the option to change with your needs.
Business owners may want to consider this type of insurance for key employees or partners.
Help your family when the time comes to settle your final tax bill.
Term to 100 insurance offers you straightforward, cost-effective life insurance that lasts a lifetime.
You may want to include this type of policy in your wealth plans to help protect the value of your assets and provide your heirs with the funds necessary to pay funeral expenses. It may also help with taxes due when you pass away and provide an opportunity to leave something behind for your family.
Business owners may want to consider this type of insurance as it provides a lower-cost entry to permanent life risk protection.
Help maximize the value of your estate.
Whole life is a type of permanent life insurance. Although people view life insurance as a means to replace lost income or provide funds for final expenses like a funeral, permanent life insurance may be a valuable wealth planning tool in other ways.
An option for whole life is participating life insurance, a product intended to maximize estate values with the help of a managed investment approach. It generates long-term growth by crediting policy dividends, attributed to the performance of a diversified investment portfolio managed by the life insurance company.
Together, whole life and universal life insurance are classified as permanent insurance providing the opportunity to build cash value. This type of life insurance may provide further opportunities for business owners looking to create a legacy through succession planning or a source of retirement income.
Plan for long-term, tax-sheltered estate growth.
Universal life combines the security of permanent life insurance coverage with the growth of a tax-deferred investment account. The investment account is managed by the policyholder to achieve long-term estate growth.
As your other assets grow, so does the potential tax bill your estate may have to pay. Your universal life policy benefit may help offset that cost.
A universal life policy may be especially attractive to people who have used up the contribution room in their traditional pools of capital, such as a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA)—and are looking for another method of tax-deferred saving.
“Our clients are delighted to understand the contribution of insurance as a strategy in their overall financial and business plan. Adding insurance as a secure part of a comprehensive financial plan reassures clients.”
Marcel RobitailleAssociate Wealth AdvisorGroupe Robitaille
Connect with RBC Wealth Management Financial Services or speak with your RBC advisor* to learn more about insurance planning.
*Advisors at RBC Dominion Securities or RBC Phillips, Hager & North Investment Counsel can assist you with insurance planning.
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