I noted in the post, that we intended to have a follow-up podcast on some of the hard questions to ask when you are considering entering into a permanent life insurance policy. That podcast is now available here.
Both podcasts were moderated by Simon Kay of IPS Insurance (email: firstname.lastname@example.org). Simon specializes in Life Insurance for HNW individuals and corporate business owners and is the pioneer of Private Underwriting. Jay Hershfield was my fellow panelist on both podcasts. Jay is a highly regarded tax and estate specialist with an insurance expertise and is currently a director with Scotia Wealth Management.
Some of the tough questions we covered in this podcast include:
- Are there any income tax rules that make the payment of a tax-free capital dividend not effectively 100% tax-free to the final estate?
- If a permanent policy has a cash surrender value (“CSV”), are there any circumstances the CSV can increase the value of shares on death, thereby increasing the estate’s tax liability?
- Can a change in dividend scale affect future premiums or policy values?
- How can your children’s plans for your Holdco upon the passing of the last surviving parent affect your tax planning?
- What are the risks and advantages of leveraged insurance?
- If you are younger married person, should your policy be a last-to-die policy?