Explained by an Expert: How to Use Whole Life Insurance for Retirement

Posted on September 17, 2019 and updated September 17, 2019 in Life Insurance Canada News, Whole Life 2 min read

I’m going to talk a little bit today about a question I got on how you can use a whole life insurance policy to help with your retirement.

A whole life policy generally allows you to build a cash value in addition to the insurance. This cash value is growing in a tax shelter basis, so some people will use that cash value to supplement their retirement income.

That person will want to make sure they are taking advantage of things like RRSPs and tax-free savings accounts, if it fits their overall retirement plans and overall budgets.

You are going to want to work with an advisor who is experienced in those areas, and you are going to want to make sure that, if you have questions in terms of how the policy works and how the cash value element works, you ask those questions and get those responses in writing.

 

Visit our whole life insurance page if you want to learn more about whole life insurance plans or get whole insurance quote.

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