Life in the tax-free

Life in the tax-free

Thinking of subscribing to a life insurance or you already have one?

Did you know that certain types of life insurance enable the subscriber to inject additional funds?

The type of life we ​​refer to here is the universal life.
If you have money sitting in a bank account, you should seriously consider because the tax shelter is very interesting.

Who is it for there?
To those who have cash or budget surpluses and a high tax rate.

Why is this interesting?
The Universal Life is one of the best tools to cap tax-free that exists outside of RRSPs.

When we talk of succession or retirement needs, the universal life insurance can play an important tax shelter.

In addition to being a product of protection in the event of death, it can be an investment. You can place small and large sums there.

Advantages:

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If one uses the universal life insurance as retirement income and if we withdraw money from the account, there are only interests to be taxed because the money that place at that location, c is net money and it's not like an RRSP.
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Leaving money in the account, in case of disability, the law says you can withdraw money tax-free in its entirety, as the side of the interests of capital invested, representing a tax benefit very important.
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Upon the death, all the money accumulated in the contract, in addition to the death benefit is paid to the beneficiary of the contract, completely tax free.

Limit
There is no real limit. There are people who put 100 000 or $ 200 000 with a snap in this type of insurance where the money grows tax free, except for 2.35% tax paid on departure on the amount purchased.


Council
If you already subscribe to a universal life insurance, you should consider to inject additional funds to place them tax free. If you are considering take out life insurance then consider this option.