Using life insurance strategically: A different kind of asset

When most people think about life insurance, they think about protection – providing for loved ones if they become ill or injured, or when they die. That’s certainly an important aspect of it. But with the right planning, life insurance can also serve a broader purpose: as a tool for a long-term financial strategy, legacy planning, and tax efficiency.

We work with individuals, families, and business owners who want their insurance to do more. We help you look beyond the basics and explore how certain types of permanent insurance can support your financial goals today, and in the future.

A holistic approach to risk and wealth

When structured thoughtfully, permanent life insurance – specifically whole life or universal life policies – can act as more than a safety net. It can create a foundation for preserving and transferring wealth, supporting retirement goals or offering a liquid asset inside your corporation. The key is not just choosing a product, but building a strategy around your life, your values, and your evolving needs.

This is where we come in. As independent advisors with decades of experience, we don’t sell you a policy – we design an approach. We’ll walk you through how permanent insurance can contribute to your overall plan and help you understand if it’s the right fit based on your income, goals, family, or business.

Clarity in complex situations

For high-income earners, incorporated professionals, and business owners, taxes and estate considerations often come into play. We guide clients through strategies that use permanent life insurance to:

• Grow wealth in a tax-efficient way. Under Section 148 of the Income Tax Act, money inside a permanent policy can grow tax-deferred.¹ This means you don't pay taxes on the growth within the policy, and there may be potentially no taxes when it's paid out to your beneficiaries. 
• Transfer assets quickly, privately and directly. Life insurance proceeds are paid directly to beneficiaries, bypassing probate and helping avoid delays, fees, and exposure to public record.
• Create liquidity for your estate or business. If you need access to funds in the future, you may be able to borrow against the policy, use it as collateral, or withdraw from the cash value. How you access your money depends on the structure of your plan.
   

When life insurance is integrated into a broader financial strategy, it offers more than protection. It becomes a way to preserve flexibility and control, especially as life evolves.

For business owners: A long-term asset inside your corporation

For incorporated clients, corporate-owned life insurance can serve multiple purposes—from succession planning to tax-efficient wealth transfer. When structured correctly, it may allow your business to grow an asset on the balance sheet while ensuring tax-free liquidity for future needs. We help you navigate that complexity, working alongside your accountant or legal advisor to align the strategy with your corporate structure and long-term plans.

Planning that’s personal, not prescribed

Using life insurance as an asset isn’t a one-size-fits-all solution. It needs to be carefully evaluated, implemented, and monitored over time. That’s why our process begins with an audit – an in-depth review of your existing coverage, financial picture, and goals.

From there, we offer clear recommendations that are tailored to you. We help you understand the trade-offs, how to access the value in your policy if needed, and how borrowing or withdrawals might affect your long-term plans.
It’s about more than coverage. It’s about designing a strategy that grows with you.

Let’s talk strategy

If you're curious about how permanent life insurance could support your financial or estate planning goals, let’s talk. We’ll start with a no-pressure consultation, help you clarify your needs, and walk you through your options with clarity and confidence.

Sources

1. Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)), s 148. https://laws-lois.justice.gc.ca/eng/acts/I-3.3/page-151.html#h-307970