Permanent Life Insurance
HMR Insurance - life insurance providers in Victoria, BC. Receive a free, no obligation quote or call us for more information: 1-888-592-4614
It is said, "You buy life insurance to create an estate", but later in life, "you own life insurance to conserve your estate". If you possess capital assets such as commercial real estate, land, a family cabin, or company shares, your estate may need to pay capital gains tax on 50% of their increased value. Life insurance can provide your estate with the needed liquidity versus selling of assets.
Permanent life insurance can also provide equalization benefits for your beneficiaries, ie. if one of your children is named as the beneficiary for your RRSP/RRIF, there will be up to a 43% tax liability claimed against your estate. Permanent life insurance can provide the liquidity needed so your remaining beneficiaries are not strapped with this unforeseen estate liability.
Term 100 Life Insurance
Term 100 is best for final expenses, and known terminal tax burdens. A low cost permanent life insurance policy. Premiums are guaranteed for life. Term 100 does not have any Cash Value.
Universal Life Insurance
The only life insurance policy you will ever need. Universal Life insurance is a permanent form of insurance, which includes an investment account built into it. Excess deposits are invested in various securities such as Segregated Funds. These investments grow, tax-sheltered, similar to a RRSP. The cash value build up in a Universal Life Policy can be used to increase the face amount, reduce future premiums, loaned or borrowed from the policy, used as collateral for a loan, or even to stop paying premiums.
Universal Life is popular among business owners, as it is creditor-protected. Funds invested in a UL policy cannot be seized by creditors, unlike RRSP's which can be accessed by creditors. Universal Life also allows businesses to shelter funds inside of their company to avoid the Passive Retained Earnings Tax.
Universal Life has the ability to grow its face value as the investments contained within it increase in value. This makes Universal Life the ideal solution for unknown future liabilities, like final capital gains tax. As the value of the liability increases the face amount of a Universal Life policy can be increased to keep pace.
For more information on all the things Universal Life can help you accomplish, like tax deferred savings and estate creation, please contact our office.
Whole Life Insurance
Similar to Universal Life, Whole Life offers an investment account held inside of the life insurance policy. However, rather than traded securities, whole life policies receive dividends from the issuing life insurance company. These dividends can be used in a number of ways, however, the most beneficial way is to purchase Paid Up Additions. Paid Up Additions, are guaranteed increases to the face amount of your life insurance policy. Using this option allows your Whole Life policy to grow over time, with a guaranteed face value unlike the variable fund value in a Universal Life.
Whole Life is best suited to conservative individuals, looking to grow their death benefit over time.
HMR Insurance - providing life insurance solutions since 1982.
Receive a free, no obligation quote or contact us in Victoria for more information about permanent life insurance.