Lifestyle Money

Enhanced Retirement Income Concept

The enhanced retirement income concept is a strategy for tax-advantaged accumulation to complement your current retirement income program and increase your estate values.

Conventional retirement planning has been based on statutory plans, government-controlled, tax-assisted programs like...

Can these plans alone provide enough income for your lifestyle?

The enhanced retirement income concept is based on using life insurance to accumulate additional tax-advantaged growth of policy values. The cash value of the life insurance policy can later be accessed to provide added income at retirement and a tax-free transfer, at death, of the remaining death benefit to your intended heirs or charitable organization.

Exempt Life Insurance

A powerful tool in your financial security portfolio

An exempt life insurance policy is defined in regulation 306 and 307 of the Income Tax Act (ITA). The ITA provides that the cash value accumulation is exempt from annual accrual taxation, provided certain conditions, as set out in the regulation, are met.

Depending on the terms of the insurance contract, funds within a life insurance policy may be accessed by direct withdrawals or by means of a policy loan. The tax treatment of these transactions will vary depending on the individual circumstances.