Chapter 10: Life Insurance Products, Features, and Taxation

In this section

• Selecting Representatives and Companies for Life Insurance
  Learn how to effectively choose life insurance representatives—whether captive agents or independent brokers—and evaluate insurance companies in Canada, considering licensing, financial stability, underwriting, and potential conflicts of interest.
• Conducting a Life Insurance Needs Analysis
  Discover the key steps, methods, and considerations to determine appropriate life insurance coverage, along with practical examples and regulatory references for comprehensive financial planning in Canada.
• Business and Personal Applications
  Explore how life insurance supports both individual and corporate needs through personalized coverage, key person strategies, buy-sell agreements, collateral insurance, and executive compensation planning. Learn about tax considerations, the Capital Dividend Account, and best practices for coordinating insurance with broader financial and estate planning goals.
• Tax Treatment of a Life Insurance Policy
  Explore essential tax considerations for life insurance policies in Canada, including tax-free death benefits, exempt policy rules, adjusted cost basis implications, policy loans, and corporate ownership scenarios for enhanced estate planning.
• Calculating Taxes on Life Insurance
  Dive into the critical aspects of calculating taxable gains, ACB adjustments, and policy transactions within Canadian life insurance. Explore scenarios involving partial withdrawals, policy loans, dividend options, and estate planning considerations to master the fundamentals of life insurance taxation in Canada.