Concerned about the taxes you’ll owe in your estate?

Learn how life insurance can solve this issue

(3 min read)

For many, there will be a tax bill owing in their estate from all of the assets they have. 


Assets can be transferred tax-free from spouse to spouse, however, when assets are transferred down to your children or grandchildren, a tax bill can and most likely will occur.

Assets that can cause taxes include but are not limited to RRSPs, RRIFs, non-registered portfolios, cottages, rental properties, vacation homes, offices, pensions and the shares of your corporation.

So how does life insurance help?

The important role of life insurance in your estate planning

Life insurance can be used to solve many issues, but for your estate, it is commonly used to help with the following:

  • Provides tax-free money and liquidity into your estate to deal with immediate needs and pay off liabilities such as your mortgage and credit cards.
  • Pays for the taxes owed in your estate to ensure your beneficiaries can receive the assets in a timely manner.
  • Avoids the forced sale of your assets such as properties and investments to come up with the money for your taxes.
  • Is the most cost-effective way to pay for your taxes and is much cheaper than using cash.
  • Preserves your net worth.
  • Provides income protection for your family.
  • Allows you to leave tax-free money to a charity or anyone else you choose.

Overall, life insurance is a diverse asset that can be used to solve a variety of your estate planning issues and save you money, time and stress.

For more information about life insurance, click here. 

If you would like to discuss the benefits that life insurance can bring to your estate, please inquire below:

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