ESTATE Insurance (Legacy)

Estate Insurance should be considered to:

1. Create an inheritance for your beneficiaries
2. Preserve your existing legacy from taxes and probate/executor fees
3. Provide liquid funds to pay mortgages or capital tax gains so that non-liquid assets such as cottages or businesses don’t have to be sold
4. Donate to a charity and receive a tax benefit for your estate
5. Provide the funds to pay last expenses, cover debts, and estate taxes

Life insurance continues to be an important estate planning tool, even in retirement. Thinking ahead to the expenses incurred to your estate at your death, will help you to assess your needs/wants in this area.

Some of the expenses to consider are: 

1. Unused RRSPS or RRIFS are fully taxable at death is you don’t have a spouse to transfer them to
2. When you die, you are deemed to dispose of all capital property. Tax on capital gains must be covered by your estate
3. Probate and executor fees (1.5% after the first $50,000)

At Ottawa Asset Management, we review the pros and cons of Estate Insurance as it applies to your situation. We help you to decide which type(s) of insurance coverage is best for you.

Insurance rates vary from carrier to carrier. As an insurance broker, we work with all the major Canadian providers of Life Insurance to find you the best rates for your policy.

Call us today, or book an appointment online, for a free quote or consultation.

What is Estate Insurance?

To ensure that you have insurance coverage at death, you would need to have permanent insurance of some kind. Estate Insurance is permanent insurance that you have in place to cover the tax liabilities mentioned above or to create an inheritance.

For couples, the Joint-Last-To-Die Universal Life policy is often a good solution to preserve an estate for your loved ones. A client who’s not insurable on his own can still qualify for life insurance in joint-last-to-die policies because all insured lives are considered together. The life insurance proceeds are not paid until the last of the insured dies, so it’s important to make sure the funds won’t be needed until that happens.

For an individual, a Whole Life policy could be a good solution for Estate Insurance.

Our Insurance Partners:
Canada Life | BMO | Equitable Life | Ivari | RBC | SSQ | Empire | Life Sun Life | Manulife | Desjardins | Great West Life

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Roger Crandlemire, CFP | Contact us