Short YouTube clip by Jayson Lowe answering whether policy loans are tax free in Canada. The speaker states policy loans can be accessed tax-free up to the policy's adjusted cost basis, warns a taxable event can occur beyond that, and directs listeners to episode 100 of the "Wealth Without Bay Street" podcast for a detailed walkthrough and mitigation strategies.
So another question we get often is about policy loans and are they tax free in Canada? Well, you can absolutely access policy loans tax free in Canada up to the level of the adjusted cost basis. Now there can become a taxable event, but we teach you exactly how to deal with that event in Canada so that you can still see massive tax advantages. In fact, you can access capital tax free. It's just a matter of how we do it. We have a whole episode on our podcast Wealth Without Bay street where we talk about that. It's episode 100, so if you haven't watched that, go ahead and check it out. There should be a link down below that you can click on in the description to learn all about how policy loans are taxable when it takes place, what you can do about it, how you can be empowered all through education. So we've got some great content. Make sure you check out that episode. You're going to enjoy it and it'll answer all of your questions about policy loan taxation for Canadians.
