When life happens – How does your life insurance adapt?

Life Insurance is a long term asset – it usually survives you! Not all decisions and financial assets have this kind of resiliency.   Think about when you last bought something that you thought would last…. that Star Wars collector DVD set, those acid washed jeans, that super funky floral wallpaper…..

Life insurance can provide a safety net through all the big events in your life – your marriage, the birth of your first child, the start up of your first business, the sale of your business, and your transition into retirement.  The question we want you to ask yourself today – where is the best place to own my insurance?  

Ownership is a tricky question, as there are legal and tax aspects that need to be considered, as well as the overarching purpose of having the insurance, which can change over time, as your circumstances change.

Before you move an insurance policy out of your corporation, STOP!  

Before you transfer an old policy to your corporation, STOP!

There are imbedded values in your contract, even if it has almost no cash value, as they are underwritten at younger ages.    

At best, you may be able to release some cash from your corporation in a tax effective way, at worst, you may stumble into a double tax situation when there is no liquidity to fund an unintentional tax bill.

If you are considering moving the ownership of your policies, or want to review your existing insurance portfolio, don’t hesitate to reach out. 

We are here to serve.