Family wealth transfer plan


Using Life Insurance to accumulate and transfer wealth

Many are not aware that Life Insurance can be used as an effective way of accumulating and transferring wealth. The Family Wealth Transfer Plan is not unlike other permanent insurance strategies that transfer non registered savings from a tax exposed investment to an exempt life insurance policy. What makes this concept different is the owner of the policy is purchasing life insurance on a child or grandchild. This will allow the parent or grandparent to defer tax by passing down assets to the next generation through a life insurance policy tax free. It also gives the owner control of the deposits and investment selection of the plan while they are alive.


Who is this right for?

This strategy is appropriate for those who are looking for alternative methods to shelter investments from tax that are intended to be passed on to the next generation. Those who may have a shortened life expectancy or are uninsurable but wish to take advantage of the ability to tax shelter funds inside an exempt permanent insurance policy would also benefit from this strategy.




Interested in reading the full article?
Contact us if you'd like to discuss transferring your wealth to the next generation, or for a copy of our full Family Wealth Transfer Plan article.