Life Insurance

There are three types of life insurance policies an individual, family or company can purchase.

Types of Life Insurance Policies:

1. 1. Term Life Insurance

   2. Universal Life Insurance

   3. Whole Life Insurance

Corporate Owned Life Insurance:

• 1. Buy/Sell Agreements

  2. Key Man Insurance

  3. Operating Company Corporate Owned Life Insurance 

  4. Holding Company Corporate Owned Life Insurance - Setting up a holding company limits liabilities from creditors. Life Insurance can also be used to supplement retirement income.

  5. Retirement Compensation Arrangements (RCA)

  6. Creditor Insurance (required by lenders for loans and/or mortgages)

Estate Planning:

Liquidity is the biggest challenge when dealing with estate assets. Investments such as stocks, bonds, mutual funds, segregated funds, GIC's and term deposits can usually be sold immediately. Other types of investments are not as liquid and cannot be sold when the funds are needed.

The most common assets that can cause illiquidity and in some cases insolvency to an estate are as follows:

1. Real Estate

2. Limited Partnerships

3. Mortgage Pools and Mortgages 

4. Shares in Privately Controlled Corporations

Life insurance is used in estate planning to supply liquidity to estates with illiquid assets. Cash from insurance policies prevents estate insolvency and estate assets having to be sold at fire sale prices.

Contact Us for a Life Insurance Quote

The information provided on this web site is intended for general information only. It should not be construed as legal, accounting, tax or specific insurance and investment advice. Clients should consult a professional advisor concerning their situations and any specific insurance and investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, Stone-Hedge Financial Group Inc. and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it.