Personally taking care of your tax and estate planing needs can be a real challenge. Often insurance planning is an integral part of the overall plan. Having a partner to assist you with information on customized insurance solutions can be a real asset.

We at Martell Insurance Services want to be that partner.

We provide specialized information about the role life insurance can play in helping clients achieve their financial goals. We understand law, life insurance and accounting and their link to complex tax and estate planning. More importantly we know when and when not to incorporate life insurance.

Life insurance has long been recognized as an important tool in estate and succession planning. Traditionally, life insurance has been used in personal estate planning for such things as creating liquidity to satisfy estate liabilities including tax liabilities: estate equalization; estate creation and funding charitable bequests. For business and succession planning purposes life insurance has traditionally been used as a funding vehicle for the survivor ship obligations under a shareholder agreement; for key person protection and for business loan protection. Each of these traditional uses for life insurance focuses on the protection element associated with life insurance. The existence of a life insurance policy ensures that cash will be available to fulfill particular needs at a specific point in time when liquid funds are needed.

Life insurance is often the most economical and tax efficient vehicle for accomplishing many estate and succession planning objectives. However in addition to traditional applications modern life insurance products and the unique tax treatment afforded these products can provide more than simply a tax-free death benefit. Product innovations in recent years have created the ability to design life insurance solutions which are better suited to the needs of the clients. Life insurance products combine pure insurance protection with tax preferred investment attributes. In addition where the appropriate beneficiary designation is in force life insurance products can provide the possibility of creditor protection. As a result of this combination of features life insurance products are unique financial instruments which can often enhance estate and succession planning and allow for a variety of attractive and tax efficient planing opportunities.

Life insurance products can generally be divided into two categories: Term Insurance and Permanent Insurance. Term insurance is typically used to satisfy a temporary insurance need, while permanent insurance products are most effective when dealing with insurance need ins the business and succession planning context.

Traditional uses of lie insurance in personal estate planning;

  • Estate Creation.
  • Final Expenses.
  • Estate Equalization.
  • Charitable Giving.
  • RRSP/RRIF Estate Maximization.
  • Funding of Capital Gains Taxation.

  • Traditional uses of life insurance in the corporate context are listed below;

  • Buy-Sell Funding
  • Collateral Insurance
  • Key Person Insurance
  • Split Dollar Arrangements
  • Estate Freeze