All life insurance plans start with the same basic precept. Your client policyholder pays a premium in exchange for a tax-free lump sum benefit that’s payable to their selected beneficiaries upon their death. But there’s more! Because life insurance enjoys favourable tax treatment under the Income Tax Act1, it’s a valuable financial instrument that can do more than just pay a lump sum death benefit. Most Insurers design plans that offer features and benefits — added value for consumers that comes at a premium.
We’ve made it simple for your prospects and clients to check out the basic life insurance options with a new tool, Exploring Your Life Insurance Options. Be sure to share it with them to enhance your next conversation about the option that’s best for their circumstances.
If you have any questions about the many benefits of life insurance, please contact your local PPI office.
- Along with the tax-free death benefit, the tax treatment of Canadian exempt life insurance policies includes tax-deferred accumulation. When there is a disposition of the life insurance policy (for instance on withdrawal, surrender, or policy loan) or when a dividend is paid to the policyholder, taxation may apply.