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  • Policy Strategy Comparison: Whole Life vs UL

    Policy Strategy Comparison: Whole Life vs UL

    Print Version Both Participating Whole Life and Universal Life are permanent life insurance products that provide a guaranteed death benefit and tax-sheltered investment growth. The difference between the two lies in how the investment component is managed, the level of flexibility, and the potential for long-term performance. Participating Whole Life Participating Whole Life (WL) is

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  • Rethinking IFAs: What Accountants Should Consider After Bill C‑59

    Rethinking IFAs: What Accountants Should Consider After Bill C‑59

    Print Version The recent GAAR amendments enacted through Bill C-59 mark a turning point for Immediate Financing Arrangements (IFAs). While previously tolerated due to sequencing and legal form, these leveraged insurance strategies could now be exposed to reassessment on the basis of economic substance and purpose. For accountants advising clients with IFAs—or considering one—the deductibility

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  • The End of an Era? Why GAAR Now Puts Premium Financing on Shaky Ground

    The End of an Era? Why GAAR Now Puts Premium Financing on Shaky Ground

    For years, Immediate Financing Arrangements (IFAs) have been promoted to high-net-worth Canadians as a tax-efficient way to fund permanent life insurance. The model relies on a simple premise: pay a large insurance premium out of pocket, then obtain a loan secured by the policy to “replenish” that capital. Rinse and repeat. The borrowed funds are

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  • A Tale of Two Policies – The Impact of Policy Structure on CDA

    A Tale of Two Policies – The Impact of Policy Structure on CDA

    When evaluating corporately held life insurance policies, many focus solely on the death benefit and premium schedule. However, two policies with identical premiums and death benefits can result in vastly different net value to your estate. The key difference lies in how each policy impacts the Capital Dividend Account (CDA) and the portion of proceeds

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  • Accessing Corporately Held Cash Value in Life Insurance Policies for Personal Loans: A Strategic Financial Tool

    Accessing Corporately Held Cash Value in Life Insurance Policies for Personal Loans: A Strategic Financial Tool

    For business owners and shareholders, accessing the cash value held within a corporation’s life insurance policy, such as Whole Life or Universal Life (UL), for personal use can be a strategic financial maneuver. One effective method involves personal loans backed by corporate guarantees. This approach offers several advantages, particularly when a future capital gain event

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