Now that you are about to begin your retirement, your primary concern is probably about having enough funds to enjoy what is hopefully a lengthy retirement. Protecting the financial well-being of your family can also help you achieve the retirement lifestyle you deserve.
Most people think of permanent life insurance as a benefit received when someone dies. They know it’s a great solution to 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 you’re enjoying now.
People often think of RRSPs and other registered plans when they think of retirement. The problem is that the amount you can contribute to these plans is limited. The base amount may not be large enough to provide you with the desired income.
The Insured Retirement Plan is a solution that utilizes a permanent life insurance policy to provide you with the additional insurance protection you need and access to tax-free cash during your retirement.
Under current law, the cash value in a life insurance policy accumulates tax-free up to certain limits. The Insured Retirement Plan 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 Plan lets you use your policy’s cash value as collateral for a bank loan.
This bank loan provides the cash you desire, tax-free. The loan does not have to be repaid until the life insured dies. The tax-free death benefit is used to repay the loan when the insured person dies. Once the loan is repaid, the policy’s beneficiaries pay any remaining death benefit.
The Insured Retirement Plan might be the right solution for you if you:
For further information and guidance, please contact a Scotia Wealth Management relationship manager.
This publication has been prepared by The Bank of Nova Scotia for Scotia Wealth Management clients. It is for general information purposes only and should not be considered or relied upon as personal and/or specific financial, tax, pension, insurance, legal or investment advice. We are not tax or legal advisors, and we recommend that individuals consult with their qualified advisors, including tax and legal advisors, before taking any action based upon the information contained in this publication. The opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. Scotia Wealth Management is under no obligation to update this commentary, and readers should assume the information contained herein will not be updated. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither The Bank of Nova Scotia nor any of its affiliates or any of their respective directors, officers or employees make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This commentary may contain forward-looking statements based on current expectations and projections about future general economic factors. Forward-looking statements are subject to inherent risks and uncertainties which may be unforeseeable and such expectations and projections may be incorrect in the future. Forward-looking statements are not guarantees of future performance and you should avoid placing undue reliance upon them. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of The Bank of Nova Scotia.
— Scotiatrust®, The Bank of Nova Scotia Trust Company
For many families, cottages are a prized second home, holding sentimental value after a lifetime of special moments and great memories. However, when the time comes to pass on the family cottage to the next generation, doing so without a succession plan to deal with questions and conflicts can be emotionally and financially challenging.
— Scotia Wealth Management
For many of us, retirement is a finish line. After you cross it, you can relinquish your responsibilities and relax. But too much relaxation and not enough responsibility can soon translate into feelings of boredom and a lack of purpose.
— Scotia Wealth Management
People are living longer, and that’s amazing. But our newfound longevity isn’t worth much if we don’t have a plan to help us make the most of those extra years.
— Total Wealth Planning, Scotia Capital Inc.
You have goals for all aspects of your life—your family, your business, and your future. A Total Wealth Plan can identify how your wealth can help you achieve those goals and live the life you want.
This publication has been prepared by The Bank of Nova Scotia for Scotia Wealth Management clients. It is for general information purposes only and should not be considered or relied upon as personal and/or specific financial, tax, pension, insurance, legal or investment advice. We are not tax or legal advisors, and we recommend that individuals consult with their qualified advisors, including tax and legal advisors, before taking any action based upon the information contained in this publication. The opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. Scotia Wealth Management is under no obligation to update this commentary, and readers should assume the information contained herein will not be updated. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither The Bank of Nova Scotia nor any of its affiliates or any of their respective directors, officers or employees make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This commentary may contain forward-looking statements based on current expectations and projections about future general economic factors. Forward-looking statements are subject to inherent risks and uncertainties which may be unforeseeable and such expectations and projections may be incorrect in the future. Forward-looking statements are not guarantees of future performance and you should avoid placing undue reliance upon them. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of The Bank of Nova Scotia.
® Registered trademark of The Bank of Nova Scotia, used under licence. ™ Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management® in Canada consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. Private banking services are provided by Scotiabank. Estate and trust services are provided by The Bank of Nova Scotia Trust Company. Portfolio management is provided by 1832 Asset Management L.P. and 1832 Asset Management U.S. Inc. Insurance services are provided by Scotia Wealth Insurance Services Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. International investment advisory services are provided by Scotia Capital Inc. Financial planning services are provided by Scotiabank and ScotiaMcLeod. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and regulated by the Canadian Investment Regulatory Organization. Scotia Wealth Insurance Services Inc. is the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank group of companies. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Insurance Agents (Financial Security Advisors in Quebec) representing Scotia Wealth Insurance Services Inc.
Scotia Wealth Management® in The Bahamas consists of a range of financial services provided by Scotiabank (Bahamas) Limited and The Bank of Nova Scotia Trust Company (Bahamas) Limited. International private banking and international investment advisory services are provided by Scotiabank (Bahamas) Limited, an entity licensed with The Central Bank of The Bahamas and The Securities Commission of The Bahamas. International wealth structuring solutions are provided by The Bank of Nova Scotia Trust Company (Bahamas) Limited, an entity licensed with The Central Bank of The Bahamas.
Scotia Wealth Management® in the Cayman Islands consists of a range of financial services provided by Scotiabank & Trust (Cayman) Ltd., an entity licensed by the Cayman Islands Monetary Authority. Scotiabank & Trust (Cayman) Ltd. provides international private banking services, international investment advisory services, and international wealth structuring solutions.
