Disability Insurance

Insurance Strategies

Innovative policies to help you build and protect your wealth

Do you need to transfer wealth to your children or grandchildren on a tax-efficient basis or are you worried about replacing income in the event of the death of a spouse? Are you interested in alternate options for retirement planning? Do you require back-up funding for business loans? Attain greater financial security today with advanced personal, business and corporate insurance strategies that effectively maximize your wealth and secure your family’s financial future.

  • Insured Annuity Concept

    Insured Annuity Concept

    The personal Insured Annuity concept is a financial planning strategy that starts with the liquidation of your interest-bearing investments, such as GICs, bonds and bank savings accounts. The resulting funds are used to purchase a prescribed life annuity contract and an exempt life insurance policy. The annuity generates a payment that covers the life insurance premiums and the tax on the annuity. The remaining amount is used to supplement your income. When you pass away, the life insurance proceeds pay for a gift to his or her heirs or favourite charity.

  • Retirement Program

    Insured Retirement Program Concept (IRP)

    The Insured Retirement Program is a financial planning strategy that will address your dual needs for insurance and supplementary retirement income. With this financial planning strategy, deposits are made into a permanent life insurance policy. In the future, the policy is assigned to your bank as collateral for a loan. The loan is used as a retirement income supplement. When you pass away the insurance proceeds are used to pay off the outstanding loan balance and the excess proceeds are paid to the named beneficiary, tax-free.

  • Invest the Difference

    Buy Term, Invest the Difference

    The buy term, invest the difference concept compares the benefits of permanent life insurance to the combined benefits of term insurance and a taxable investment. The comparison shows liquidity values and net estate values under each alternative. And it’s available for both personal and corporate situations.

  • Tax Planning

    Tax Planning

    Life insurance can be the most effective tax and estate planning tool to fund the tax liability. Life insurance can provide you with tax-free cash exactly when it is needed to pay future tax obligations. It ensures that your heirs don’t lose their inherited assets because of a large tax bill. Your heirs get the property you intended them to receive and you get the peace of mind that comes from knowing this will happen. 

  • Charitable Giving

    Charitable Giving

    Part of your estate planning process may be taking charitable giving into consideration. What you might not know is that life insurance can play an integral role in charitable giving. A charitable gift tax credit has the ability to offset taxes payable at passing. This strategy gives the policy owner the option to leave a donation to his or her charity of choice, reducing or possibility eliminating the taxable amount on their final tax return.   

  • Wealth Transfer

    Wealth Transfer Strategy

    The Wealth Transfer Strategy illustrates the transfer of wealth from one generation to the next. The concept involves the purchase of a life insurance policy on the life of a child or grandchild with the parent or grandparent owning and funding the policy. At some point in the future, the policy is transferred to the life insured on a tax-free rollover basis. The Wealth Transfer Strategy illustrates a series of cash flows in the form of policy withdrawals that may be used to fund such things as post–secondary education, a down payment for a home or provide funds for retirement.

  • Estate Bond Concept

    Estate Bond Concept

    The Estate Bond concept is a strategy that repositions the funds you have earmarked for the next generation. By moving those funds from a tax-exposed investment vehicle into a tax-exempt life insurance policy, the cash value accumulates on a tax-deferred basis in the exempt life insurance policy, increasing the death benefit payable under the policy. When you pass away the named beneficiary under the policy receives the proceeds of the policy, tax-free.

  • Estate Preservation

    Estate Preservation

    It’s not difficult to convince yourself that it’s better to leave a legacy to their heirs than to the government. But many people aren’t aware of the potential cost of final expenses. Estate Preservation helps you calculate these expenses and shows how life insurance can provide cost-effective funding for tax and other liabilities that arise on death. Estate Preservation helps you leave your legacy intact.

  • Cost Compare

    Cost Compare Concept

    The Cost Compare concept is a numerical analysis tool that compares the cost of a life insurance policy to other funding alternatives, including a sinking fund, borrowing from the bank or a lump-sum payment. This concept helps determine the most cost effective alternative.

  • Split Dollar

    Split Dollar Concept

    In a split dollar arrangement, two or more parties formalize an agreement to share the costs and benefits of an exempt life insurance policy. This concept provides the tools to understand the risks and benefits of split dollar arrangements and illustrates various methods of allocating the costs and benefits.

  • Critical Illness Protection Plan

    Critical Illness Protection Plan

    The Critical Illness Protection Plan (CIPP) is designed to provide owner-managers and their key employees with cost-efficient critical illness insurance protection. With employee well-being and continued business success in mind, CIPP helps business owner-managers affordably enhance their corporation’s benefit plan with critical illness insurance.

  • Key Person Insurance

    Key Person Insurance

    Key person insurance involves the use of life insurance to create immediate working capital for a business to meet immediate cash needs and to find a replacement in the event of the death of a business owner or key executive. The business owner(s) and/or other key executives spend considerable time and effort in acquiring the knowledge, experience, judgment, reputation, relationships and skills that make them valuable to the business. The death of such an individual results in the loss of a key member to the management team and can have a severe financial impact. 

  • Business Loan Collateral Assignment

    Business Loan Collateral Assignment

    Business loan collateral assignment involves the use of life insurance to create the immediate working capital for a business to repay business debts in the event of the death of a business owner or other key executives. In many small business situations, adequate financing is difficult to obtain, Creditors will often require that business owner(s) personally guarantee a loan.  The untimely death of a business owner or another key executive may cause creditors to demand immediate repayment of outstanding business debts. 

  • Corporate Insured Annuity Concept

    Corporate Insured Annuity Concept

    The Corporate Insured Annuity concept is a financial planning strategy that starts with the liquidation of interest-bearing investments, such as GICs, bonds and bank savings accounts, held by Canadian corporations. The resulting funds are used to purchase a non-prescribed life annuity contract and an exempt life insurance policy. As shareholder of the corporation, you are named as the life insured and the corporation is named as the beneficiary. The annuity generates cash flow that covers the life insurance premiums and the tax on the annuity. The remaining amount is used to supplement your income. When you pass away, the corporation receives the tax-free death benefit from the life insurance policy. The corporation pays out to your estate a tax-free capital dividend from its capital dividend account. The estate can then gift the funds received as directed by the will.

  • Corporate Insured Retirement Program

    Corporate Insured Retirement Program (CIRP)

    The Corporate Insured Retirement Program is a financial planning strategy for business owners. Your corporation deposit funds into a permanent life insurance policy in excess of the amount required to cover the insurance and other policy costs. In the future, the corporation assigns the policy to your bank as collateral for a personal loan. This addresses the need for permanent life insurance protection today and flexibility at retirement.

  • Corporate Estate Bond Concept

    Corporate Estate Bond Concept

    The Corporate Estate Bond concept compares the values that accumulate in a tax-exempt life insurance policy to corporate dollars in tax-exposed investments. This concept shows how moving corporate investment dollars into the tax-sheltered environment of exempt life insurance reduces current taxation and increases the amount paid to the owner’s estate at death.

  • Buy-Sell Concept

    Buy – Sell Concept

    The Buy-sell sales concept illustrates what happens when one of a company’s shareholders dies. It considers the company’s current structure and value, as well as the type of buy-sell arrangement chosen by the shareholders. This concept calculates the estimated fair market value of the company at a point in the future and provides numerical analysis that outlines the tax implications of the shareholder’s death to his or her estate. The concept also provides a cost comparison using four different funding alternatives to help determine the most cost-effective funding method.

  • Income Loss Replacement

    Income Loss Replacement (ILRP)

    With this plan, a small business owner can group individual disability insurance (DI) plans together – a cost-effective alternative to separate DI policies for each employee.

    With the ILRP, a small business owner can use before-tax dollars to pay for the insurance. This means that the company-paid premiums are a tax-deductible business expense and these premiums are not a taxable benefit for employees.

    Disability benefits are paid directly to the employee and are taxable. However, the ILRP offers higher benefit amounts to compensate for the tax payable.

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I am a small business owner and I’ve been looking for an advisor to discuss setting up a universal life policy.  Until recently, I thought this was something that would be overly expensive. With only limited knowledge about life insurance the ins and outs and variables made my head swim!  Daemond took the time to clearly and concisely deciphered everything into a language I understood and helped me find a solution that both covered my insurance needs and stayed within my budget.

- Cassandra Von Anrep, St.Catharines ON
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