Leveraging life insurance policies: Tips and traps working with a lender
Pierre Ghorbanian
![Pierre Ghorbanian]()
Pierre Ghorbanian
BMO Insurance | Vice-President | Advanced Markets | MBA, CFP, TEP
Leveraging life insurance has a lot of appeal to affluent clients. After all, leveraging a policy allows the policy owner to benefit from the life insurance protection, along with using the capital they’ve built up in the policy for lifestyle or income purposes. Back-end leveraging strategies, commonly referred to as Insured Retirement Plans (IRPs), are designed to supplement RRSP or RPP income. Front-end strategies, or Immediate Financing Arrangements (IFA), let clients deduct the interest cost since they are investing the proceeds of the loans into stocks, real estate or another qualifying vehicle with a reasonable expectation of profit.
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CEO at Viaticus Canada Inc.
7 年Pierre, what leverage is BMO willing to lend to policyholders age 65 and over with CSVs in either their UL or Par policies? Would they have to be BMO Life policiesx and how would they apply?