Secure Your Retirement with Whole Life Insurance: Top 10 Benefits Explained

Do you worry about planning for your retirement and how you will secure your financial future during your golden years? Whole life insurance may be the solution you need to consider instead of an RRSP. Here’s why.

RRSPs are government-sponsored programs where you have little control over your own money. They are locked in and invested in mutual funds. Mutual funds are vulnerable to stock market conditions and potential loss. While you may get a tax break when you contribute, you are taxed on your RRSP when you take it out at 65-70 years of age—when you likely will need every penny you’ve earned. Additionally, tax brackets may be much higher by the time you reach retirement age. 

Participating whole life insurance (also called dividend-paying whole life insurance) is a retirement solution many Canadians don’t consider because it is not promoted as an option by financial advisors or the financial services industry. The benefit of participating whole life insurance is two-fold. It provides a death benefit for your loved ones and a cash value asset that allows you to build equity safely and predictably over time. When you retire, you can use the equity in your whole life insurance policy as retirement income. 

Using a participating whole life insurance policy as a retirement savings alternative also gives you more control over your money. You also get to access it whenever you need it. You can also have relief knowing that your money continues to earn compounded guaranteed growth even when you borrow funds in your policy before you retire.

In the video below, Stephen Devlin gives the top 10 benefits of utilizing participating whole life insurance as an alternative retirement planning solution to RRSPs. 

Disclaimer: The material provided in this newsletter is for informational and/or educational purposes only. The information, opinions and/or views expressed in this newsletter are those of the authors and not necessarily those of the distributor. All financial endeavours should be vetted through a financial professional: life insurance broker, financial planner, accountant, lawyer, and/or other professional, as the reader, sees fit. MacDev Financial Group Corp., SET Financial Solutions Inc., including but not limited to its agents, staff, associates and/or partners will not assume any liability for any information printed in this article; indirectly, or assumed. The MacDev tagline, “Financial Control For Life” and “Bank On Whole Life” are trademarks of the MacDev Financial Group Corp. Click Legal for further information