Gaire has been in the financial services industry since 1972 and was joined by his daughter, Tannis, in 2003. Tannis & Gaire work in tandem to create an environment which supports holistic retirement, investment and estate planning. An extensive referral network is available to clients in need of legal, lending or accounting services. We take pride in our personalized service and ability to be an integral part of our client’s investment, retirement, tax and estate planning needs.
It has long been an accepted strategy to provide sufficient estate liquidity to pay taxes due at death from the proceeds of a life insurance policy. In Canada we are fortunate to have permanent life insurance policies that insure an individual for their entire life with a premium that is guaranteed not to increase. It is feasible to be able to use these policies in an effective estate plan.
Naming a beneficiary of a life insurance policy provides a significant benefit in planning and protecting one’s estate. With a named beneficiary, the death benefit is paid directly to the beneficiary and is received tax-free. It bypasses the policyowner’s estate and is not subject to probate or any other administrative fees.
If your goal is to replace income for your family for more than 2 years, you may want to add an individual policy to your group insurance coverage.
According to the same LIMRA study, on average, households with only group coverage can replace the household’s income for less than 2 years. Households with both group and personal life coverage can replace income for more than 5 years.
