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Insured Retirement Plan (IRP)

Notable Wealth Management > Blog > Insured Retirement Plan (IRP)
Registered Retirement Saving Plans (RRSP) and Tax-Free Saving Accounts (TFSA) are the most popular way to save and plan for retirement. But that’s not the only way. To enhance your retirement portfolio, consider Insured Retirement Plan (IRP). The Insured Retirement Plan (IRP) provide both a tax-free income in retirement and a tax-free benefit to your heirs/family members. The IRP is a financial planning strategy that uses tax exemption Permanent life insurance to build your wealth and provide the following:
✅A solution to current and future insurance needs.
✅Shelter your investment saving from taxes and provide you with a future cash flow income in retirement.
✅Take advantage of tax-deferred growth.
✅Supplement your financial needs in retirement.
Insured Retirement Plan (IRP) can help you achieve the retirement lifestyle you’ve always imagine by complementing your retirement saving with another form of income in retirement. Building wealth takes long term planning and it is important to diversify your retirement income stream. This is an important element of retirement income planning.
If you are Insurable, you can purchase a permanent life insurance contract, contribute to it monthly or annually and have the assets grow tax-exempt until you die. You can contribute up to the contract maximum, which varies based on the amount of insurance coverage you have purchase. Once the policy has been left to grow for a significant period of time, usually at least 10 to 20 years, you can access the funds to provide you with an income. You can also use the cash value as collateral and borrow up to a maximum of 90% of the cash value in the policy. This way the cash value will continue to grow, while you are able to draw an income on the collateral loan tax-free. At death, the life insurance policy will pay off the loan and the remaining amount to your beneficiaries, tax free and probate free. Even without the need for additional income, life insurance policies can become a key part of your estate planning, enabling you to grow funds on a tax deferred basis. To learn more about this strategy or want to review your current financial plan or review your current life insurance policies. Contact us today.