SOMETIMES, YOU REALLY CAN HAVE YOUR CAKE AND EAT IT TOO!
Protecting the financial well being of your family can also help you achieve the retirement lifestyle you deserve.
Here’s the Problem …
Most people think of permanent life insurance as money paid when someone dies. They know it’s a great solution for paying a tax liability at death, providing an estate for loved ones or leaving a gift to a charity. But what about planning for retirement? Without careful planning, you may not have enough savings when you retire to maintain the standard of living that you’re enjoying now.
What are Your Options?
People typically think of RRSPs and other registered plans when they think of retirement. Many rely on these registered plans as their main source of retirement income. The problem is that the amount you can contribute to these plans is limited. This means the base amount might not be large enough to provide the retirement income you desire. One solution is Manulife’s Insured Retirement Program. It uses a permanent life insurance policy to provide you with the insurance protection you need PLUS a unique additional feature… access to tax-free cash during your retirement years.
How does it Work?
Under current tax law, the cash value in a life insurance policy accumulates tax-free, up to certain limits. The Insured Retirement Program lets you use that cash value at a point in the future. Whether you want to supplement retirement income, purchase a vacation property or go on a trip, the Insured Retirement Program lets you use your policy’s cash value as collateral for a bank loan. This bank loan provides the cash you desire … and you receive it tax-free. The loan doesn’t have to be repaid until the life insured dies. When the insured dies, the tax-free death benefit is used to repay the loan. Once the loan is repaid, any remaining death benefit is then paid to the policy’s beneficiary.
Are You a Candidate?
Estate and retirement planning is critical to your financial health and it requires your careful consideration. The Insured Retirement Program generally is designed for those who:
- need permanent life insurance protection
- are between the ages of 30 and 55
- are in a high marginal tax bracket
- have maximized RRSP/pension plan contributions
- want to supplement retirement income with tax-free dollars
- want to reduce the amount of tax they’re currently paying
- on investments
- have minimized non-deductible debt
The Best Solution
Life insurance offers a very effective retirement planning tool. Manulife’s InnoVision policy, combined with the Insured Retirement Program, provides you with permanent protection today and tax-free cash during your retirement years. Here’s an example of how InnoVision and the Insured Retirement Program combine to provide an effective retirement planning solution. The example is based on the following assumptions:
Innovision – The Better Choice!
- A life insurance solution that, in addition to protection and investment flexibility, combines with the Insured Retirement Program to offer tax-free access to cash in your retirement years
- Protection flexibility – you design the protection to meet your needs – you can choose either a simple single coverage solution or you can add riders like
- Protection Indexor Rider and Business Value Protection Rider to increase your protection automatically to match a growing insurance need
- Investment flexibility – additional deposits above the minimum amount required grow within the policy on a tax sheltered basis to provide part of your protection solution – choose from a wide range of investment options including fixed interest and equity options
- You receive regular statements including rates of return that let you monitor the performance of your policy
- You can track the performance of your investment daily on our Web site www.manulife.ca/ul
- You decide the amount and number of deposits to suit your needs and cash flows
- Your solution is backed by the strength of Manulife, one of the largest life insurance companies in Canada
