This material is for information purposes only and should not be construed as legal or tax advice. The information provided on this website is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of the writer’s knowledge as of the date submitted for publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.
For further information and to obtain an illustration for any life insurance example such as those provided on this site, contact your advisor associated with Attingo.
An exempt life insurance policy is defined in regulations 306 and 307 of the Income Tax Act (ITA). Generally, the ITA provides that the cash value accumulation is exempt from annual accrual taxation, provided certain conditions, as set out in the regulation, are met.
If you borrow or withdraw money from your policy, it will reduce the policy’s cash value and how much money the person (or people) you’ve designated will receive (called a death benefit).
The actual cash value growth in any policy varies based on a number of factors such as type of product, product features, premium-paying period, issue age, rating, dividend option, the dividend scale and others.
This information is general in nature and is intended for informational purposes only. For specific situations you should consult the appropriate legal, accounting or tax advisor.