Ep. 14 Insurance Strategies for Income Generation, Tax Savings and Estate Planning

When most people think about insurance, they think about it in terms of risk management. And that’s what the majority of the insurance is designed for. Car insurance covers you in case you get in an accident. You might get critical illness insurance, disability or life insurance to protect you and your loved ones from those risks.

What most people don’t know is that insurance can be used strategically, not only in risk management but for complex estate planning, income generation and tax minimization.

In this episode, the final of a three part mini series, our estate planning specialist Greg Jizmejian and I do a deeper dive on some of these lesser-known insurance strategies. We discuss:

• How to use insurance to plan for taxes on assets like a cottage
• Using insurance to help with income generation in retirement
• Utilizing a strategy to fully deplete the money in your RRSP with an annuity while preserving your capital for an estate
• How business owners and professionals with a corporation can use insurance to get money out of their holding company in a tax-effective way
• How to turn taxable dividends from a holding company income into tax-free dividends
• Utilizing insurance to meet your philanthropic goals by diverting money that would otherwise go to the CRA and instead directing it to your favorite charity