Get your application in before October 1, 2016 insurer warns.
Last week, Industrial Alliance announced that any life insurance application submitted after October 1, 2016 would be based on their new 2017 product. This news is not unexpected. With the introduction of less favourable tax rules for certain life insurance products coming into effect January 1, 2017, people are looking to maximize their tax shelter room. Policies established before January 1, 2017 will be grandfathered. For more details on the changes read more here.
The new 2017 rules reduce the amount of investment capital that can be held inside a life insurance policy. Policy holders will require more insurance to shelter the same amount of money under the new rules. Can you afford to wait any longer?
Don’t put off the tax savings available under the current tax rules.
When we began writing about these upcoming changes to the tax rules last summer, the changes seemed off in the distance and something that could realistically wait. In light of this recent news, we believe the wait time is over and expect more insurers to announce similar deadlines. As insurance strategists for individuals and business owners, we strongly encourage you to explore the tax advantages of establishing a cash value life insurance policy under the current rules. There has never been a better time to consider maximizing your tax shelter room using life insurance.
Get your place in line to maximize tax exempt investments.
Life insurance applications can be submitted to ensure your place in line; starting the process but delaying the final decision. Even if the cash isn’t available right now to invest in the policy, setting up the insurance policy structure gives you the future opportunity to maximize tax exempt investments.
Policies established before January 1, 2017 will be grandfathered.