Universal Life Insurance for Personal & Corporate Needs
At Scott Mallender Insurance, Scott has extensive expertise in designing and implementing creative insurance solutions- whether it’s for a wealth transfer and leaving a legacy with a tax free death benefit or sheltering investments within a generous tax free investment account. Universal Life insurance, when designed specifically to your desires, is an excellent wealth management and estate-planning vehicle.
Universal Life Insurance – Designed to meet both your life insurance and investing needs, Universal Life insurance combines long-term insurance protection and tax-advantaged investing in one single, customizable policy. Whether your goal is to protect the legacy you’re building for your loved ones, or to build additional tax free wealth over time, Universal Life insurance can help you:
- Leave proceeds to your preferred named beneficiary – 100% tax free
- UL is a creative tool for your estate planning
- Tax free sheltered investment growth for the life of the policy
- Helps establish financial collateral for Maunlife Bank
- Purchasing a UL policy prior to 2017 will grandfather the policy under today’s legislation advantages
From how, and how much, you want to invest, to how you pay for your insurance, Scott Mallender Insurance offers a variety of simple Universal Life coverage options that can be customized to meet your financial planning needs.
Term Insurance – Do you have existing Term Insurance with a Canadian Insurance Company? Scott welcomes anyone who has an existing term insurance policy and wishes to convert it to Universal Life without a medical. Scott is a licensed broker who will help you retrieve all of the pertinent information from your existing carrier and guide you through this conversion process. More on Term Conversion.
Underwriting Service – Underwriting refers to the process of determining the eligibility of an individual or group of people for insurance coverage. At Scott Mallender Insurance, we look at a large collection of information, both medical and financial to complete the eligibility assessment and decide whether to accept and approve the insurance application. Due to Scott’s position as a Gold Elite Agent, he has direct access to Manulife’s Professional Services Team. This means that your application, including financial and medical information, is immediately sent to Manulife’s top underwriter’s desk, therefore, expediting the usual 4-6 weeks that each contract takes on the average basis.
Immediate Financing Arrangement (IFA) – An IFA is designed to provide life insurance protection and easy access to funds for alternative investment purposes. With this strategy, excess funds are deposited into a universal life insurance policy, creating significant cash value within the policy which is immediately assigned to Manulife Financial as collateral (along with other options) for a line of credit. The benefits of the IFA include the following:
- Provides life insurance protection and preserves cash flow for other investments
- Universal Life policy still remains fully tax exempt
- Loan interest used for investment purposed will be tax deductible
- Manulife will provide appropriate tax slips annually
- Loan repayment can be deferred up until death
- Leveraged money is tax free
- Establishes a lending relationship with Manulife Bank
Split Dollar – The Split Dollar concept is an arrangement where the benefits and costs associated with a life insurance policy are shared between two parties. The concept recognizes that separate interests can be identified within a single life insurance policy. One party owns the life insurance portion, while the other party is able to own and enjoy the tax free savings elements of the UL product.
Applications of the Split Dollar Concept
The Split Dollar concept can be used in any situation where different parties wish to share the obligations and benefits associated with a life insurance policy. Examples of situations where the concept is used are:
- Executive Life Insurance Planning
- Funding Shareholder Agreements
- Key Person Insurance
- Collateral Insurance Planning
- Funding a Retirement Compensation Arrangement
- Charitable Giving
Buy/Sell Insurance – Businesses need to ensure shareholders are protected from financial risks associated with the loss of an owner. These risks can be in the form of death, disability, retirement or disagreement. At death or disability, for example, the remaining owners may not want to be in business with the deceased owner’s heirs or the non-active disabled owner. As well, the heirs or disabled owner may prefer to receive the value of their share of the business in cash. Buy/Sell Insurance provides this important protection. Contact Scott Mallender to structure an effective insurance plan that supports your Buy / Sell Agreement.
Key Person Insurance – Key Person Insurance provides tax free benefits in the event the business loses a key person. These benefits can be used to meet expenses, cover debts, or cover drops in revenue. They can also be used to pay the costs of replacing the lost skills or to provide a tax free death benefit to the spouse of the deceased. At Scott Mallender, we can design a package to ensure you have the funds to keep your business operating at its peak.
