What is Life Insurance?
Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
Guest Contributor: Peter J. Merrick, TEP
What is Life Insurance? Every week, I engage in lively debates with Jeffrey Cait, MBA, CFP, CLU, CH.F.C., TEP , about the true essence of the benefits of life insurance in our 50 week national life insurance course.?
Jeff with his 40 years of experience, is the very best I have ever met in my three decades in the financial services industry in legislation and tax rules, in understanding contracts and financial strategies. At the end of each of our discussions, I know more than I started with. The aim of this blog is to give you the skinny on what life insurance is and what people are missing in their understanding of this incredible government-sanctioned tool.
Our exchanges are not only enlightening but also hilariously entertaining as we dissect the nuances of this often-misunderstood financial instrument. Through these discussions, we've come to a consensus on what life insurance truly represents.
Life insurance is a strategic, government-endorsed financial tool that many overlook, missing out on its potential benefits. It's a versatile product that secures family finances, provides estate liquidity, and facilitates wealth management, all while offering tax advantages.
Quiet Money for Family Security: We've agreed that life insurance is "quiet money" – a discreet yet powerful means of ensuring that your family remains financially stable in your absence. This aspect is paramount, making life insurance a cornerstone of responsible family planning.
Estate Liquidity and Protection: Jeff and I find common ground in appreciating life insurance for its estate planning benefits. It infuses the estate with liquid assets, safeguarded from creditors, which can be a game-changer for surviving family members managing the estate.
Versatile and Accessible Benefits: Our banter often circles back to the 'living benefits' of life insurance. We joke about the irony that a policy designed for the end of life can be so full of life, offering financial flexibility through loans and withdrawals during the policyholder's lifetime.
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The Wealthy's Best-Kept Secret: In our discussions, Jeff and I marvel at how the wealthy use life insurance as a loophole for financial planning. It's a tax-efficient vehicle that can drive through the estate tax laws, preserving wealth for future generations.
Government's Silent Nod to Self-Reliance: We've chuckled over the government's clever encouragement of life insurance. By offering tax-free benefits, the government subtly nudges citizens toward self-reliance and away from dependency on public funds.
Jeff Cait and I agree that life insurance is a powerful, multifaceted financial tool. It's a missed opportunity for many, yet for those in the know, it's a means to secure family, ensure estate health, and manage wealth, all with a nod of approval from the government.
Want an introduction to Peter J. Merrick to Discuss your Insurance Needs?
To explore how you can leverage the same strategic advantage, contact me at [email protected] or use my Calendly Link to set up a call.
I would be happy to arrange an introduction to Peter J. Merrick, Trust and Estate Planner (TEP) and expert in Canadian and International Estate Planning, to discuss your unique situation.
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