Living Benefits

Premium Advice — Help your client avoid an insurance denial

Same couple, but with a 200% rating (fairly high for a joint policy) Age 80 10.136% Age 85 4.976% Age 90 2.341% So even if the second spouse lived to age 85, he or she still would have needed 7% to 9% pre-tax to have generated the same return on the couple’s premium dollars. The […]

By Chris Paterson |March 4, 2008

3 min read

Premium Advice — Protect registered assets by cross-recommending insurance solutions

Age 90 net estate value $146,738 (after $106,172 of taxes paid) $150,000 joint and survivor Term 100 insurance for terminal taxes: approx. $2,100 annually We can see that protecting estate-conscious clients’ RRIF assets with insurance provides a greater estate benefit with minimal impact on their living values. However, what impact will health concerns have in […]

By Chris Paterson |February 1, 2008

4 min read

Premium Advice — Turning compound tax into compound coverage

One of the most common client concerns is how to find money to fund advisors’ insurance recommendations. In previous columns, I examined two strategies to help clients in the medium- to high-net-worth market overcome this anxiety. In this column, I’ll explore how we can use guaranteed or fixed interest income to create tax strategies to […]

By Chris Paterson |January 7, 2008

4 min read

Premium Advice — Using cash value plans instead of living benefits

(December 2007) The tax-sheltered growth of your client’s hard-earned dollars has long been one of the key benefits of permanent insurance products. The ability to offer similar investment vehicles to other open investments in a “self-directed” type plan (universal life) or a professionally managed balanced portfolio with low volatility (whole life) is an approach that […]

By Chris Paterson |December 3, 2007

4 min read