A.T. Financial Newsletter
LIFE-LONG PLANNING
5 creative ways
to use life insurance
Life insurance provides the peace of mind of knowing that you've taken care of your family's financial well-being should you die prematurely. But our clients who choose permanent life insurance are often surprised by just how many living benefits their coverage includes.

Here are five creative ways insurance can play a valuable role in your family's current and future finances.

1. Source of cash
Depending on the type of policy you have, you may be able to withdraw money from its accumulating cash values, borrow from it as a loan, or leave the policy intact and use it as collateral to get a low-interest, secured line of credit.

2. Tax-deferred investment growth
The investment portion of your policy grows on a tax-deferred basis (subject to governmentimposed limits), giving you an additional taxfriendly way to invest for your retirement.

This is especially useful if you have reached the maximum contribution allowed to your Registered Retirement Savings Plan (RRSP) or are unable to contribute because you belong to an employer-sponsored pension plan or don't have qualifying earned income.

3. Beef up a young scholar's college fund
Purchasing an insurance policy on your child's life has the double benefit of providing a tax-deferred savings opportunity while also guaranteeing your child has insurance even if he or she should
become uninsurable down the road.

When the time comes, the "child" isn't restricted to using the money for tuition. It can be used to start a business, travel, buy a home, or left to continue growing. As a bonus, this is an investment vehicle that both parents and grandparents can add to on the student's behalf.

4. Create an instant estate
Life insurance gives your heirs a tax-free lump sum to pay any bills owing at death. In the case of appreciating assets, like a cottage, for example, your beneficiaries may have no choice but to sell the asset to cover the tax bill. If you want to leave them with a cash inheritance or a tax-free, hassle-free way to settle your final liabilities, get them to help pay for it by purchasing the policy on your behalf!

Even if you're in your 60s or 70s, as long as you're in fair health there's a good chance you can qualify for a policy that's reasonably priced relative to the eventual payout it will provide.

5. Leave a legacy
Life insurance can be a very cost-effective way to make a big donation to your alma mater or favourite charity. Depending on the approach you take, you can choose to crystallize the tax benefits now or leave them to benefit your estate.

Please keep in mind that withdrawals or loans from a policy's value can have tax implications and will affect the value of the policy. Let us help you determine if these strategies are right for you.
CONTINGENCY PLANNING
Accidents happen
- protect yourself
Accidents are the fifth-leading cause of death in Canada.1 In 2012, 344 Canadians drowned. The fastest growing group of victims? Those aged 50-64.2 In 2011 (the most recent year for which data are available), there were almost 10,500 serious injuries from traffic accidents alone.3 So it's really not a case of "if" you or a family member will have an accident. It's more a question of what type of accident and how severe it will be.

Affordable peace of mind
An Accidental Death and Dismemberment (AD&D) policy can protect you and your loved ones from the financial repercussions of a serious injury or accident.

AD&D policies typically cover the cost of rehabilitation and reimbursement of transportation expenses in the case of injury and repatriation in the case of death. In many cases, you can protect your entire immediate family with a single, surprisingly affordable policy.

Many policies include specific amounts for daycare, spousal educational or vocational training, as well as an education component so your dreams of a postsecondary education for your children are not compromised by your accident.

AD&D protection is widely available as a rider that can be added to a life insurance policy. We can provide you with further details or a quote.
1 Statistics Canada, "Leading causes of death, by sex," Jan. 28, 2014.
2 The Livesaving Society Canada, Canadian Drowning Report, 2013.
3 Transport Canada, Canadian Motor Vehicle Traffic Collision Statistics 2011.
For more information,
please contact us at

(647) 833-2782