Comments on: Using Life Insurance To Shelter Income

By: ct

ct — Mon, 29 Jan 2007 02:03:57 +0000

My question is how the insurance company makes money. For the example you gave, the lady paid $622/year for a $1,000,000 policy starting at age 37. If she die in 40 years, she will get a payout of 1 million dollars. In the 40 years, she only paid $24880 premium. The math does not seem to add up. How come?

By: Another Blast From The Past « John Chow dot Com

Another Blast From The Past « John Chow dot Com — Sun, 28 Jan 2007 03:26:00 +0000

[...] Using Life Insurance To Shelter Income - A little financial trick to use life insurance to shelter your income so it cannot be taxed and how to take out the cash or transfer it to your heirs’ tax free. [...]

By: LuLu

LuLu — Thu, 26 Oct 2006 18:15:35 +0000

Compare to Mutual Funds, it is around 1.5-2.0% higher. But don’t forget you will have to pay 75% on Dividend or 50% captial gain in tax. If you are looking in an average of 8-10% annual growth for both then you are getting the same result but by using the UL one can save up the tax portion
It is the one investment in Canada which you don’t have to pay tax. Don’t forget the money you invested in Mutual Funds, Stocks or RRSP are all after tax money, why do you have to pay double tax when you want to take it out.

By: C Fox

C Fox — Tue, 24 Oct 2006 21:09:38 +0000

A huge, I mean HUGE, thing to watch is UL often have a mer of 2.0 (or higher) in the investment portion. With an average between 8.00 and 10.0% annual stock market return, this can cost half your gains over a 30 year period. You are not taxed on those gain, but if your gains are half…. you still lose.

By: LuLu

LuLu — Fri, 13 Oct 2006 20:58:55 +0000

For those who are interested to go to a Free Seminar (Toronto, Richmond Hill area) and would like to gain more knowledge on varies innovative Wealth Management idea before decide to purse any products from any company, please email to my.moneysense@gmail.com

No Sales is involved! Informational only!

Cheers;
Lulu

By: Yara Jbeili

Yara Jbeili — Thu, 12 Oct 2006 18:55:33 +0000

This is a great article indeed. I am a life insurance agent myself. I work at industrial alliance in Montreal, Quebec. Universal life insurance is mostly what i advise people to take. Like John stated, for people who want to insure the financial security of their families, and invest their money at the same time, free of tax, life insurance is the ideal product. All my clients are very satisfied so far. If anyone needs any information or help on getting to know the product more, please don`t hesistate to email me at y_jbeili@hotmail.com. I will be more than glad to assist you..remember it is always better to start at an earlier age, that is where the premium will be at its lowest. John you did explain it extremely well in a nut shell

Yara Jbeili

By: LuLu

LuLu — Tue, 10 Oct 2006 15:25:36 +0000

The name of this Insurance package is called (IRP) Insurable Retirement Plan. Most of the Insurance company have this plan. (ie: IA, RBC Ins…etc) Each insurance company have different types of Funds for you to invest but myself have IA since it have varies of Funds to choose instead of S&P Index as in RBC. For those who’s interested on this product, please let me know cause I can point you to a Free Seminar on this type of wealth management knowledge.

Cheers;
Lulu

By: Brandon

Brandon — Tue, 03 Oct 2006 20:39:03 +0000

Actually Lawrence, this is a good solution in the U.S.A. even with the cost of the “Pure” insurance added in the policy. If you run a Net to Net (Monte Carlo), 98% of the time the the life insurance will still function to the benifit of the policy holder.
Thats not to mention that the life insurance can pay for estate taxes to your heirs, it transfers to the beneficiary tax free, and avoids probate. So unless your dying wish is to give uncle sam, your CPA, and your lawer a signifigant chunk of your money, most people do infact have a need for life insurance.

By: John Chow

John Chow — Mon, 25 Sep 2006 10:40:27 +0000

OK, I have recovered the posts. The Spam Kara 2 software killed it. I am running a new spam filter now. Hopefully this one performs better.

By: John Chow

John Chow — Sun, 24 Sep 2006 04:28:31 +0000

I didn’t remove any post. And I do recall your post about it. I don’t know what happen. Could the Spam Kara 2 software deleted it. Feel free to post it again.