Jayson Lowe explains how Canadians can fund whole life insurance premiums from various sources: liquid savings, registered retirement savings plans (RRSPs) converted strategically (with tax-advice), and realizable equity from real estate or other assets. He emphasizes involving chartered accountants for tax guidance and frames the choice as reprioritizing existing financial resources.
While there are multiple sources of premium, and so it can be liquid savings that you're presently storing in someone else's bank. It can be, you know, we've had many clients who have looked at their existing financial picture and said, hey, you know, I've got this money in registered retirement savings plans. Maybe it might make sense for me to strategically melt that RRSP down, move it from a forever taxed environment to a never taxed environment. And that's where we involve a chartered accountant and someone who can provide, you know, proper tax advice to help that person understand what the consequences of those decisions are. Because we're not tax professionals, we don't provide tax advice. We involve good guidance. We have a chartered accountant by trade as an extension of our team who's available to participate in those discussions. People are utilizing, you know, net realizable equity from the sale of real estate or from, you know, other assets. And so there's a wide variety of potential sources of premium. I hope that helps. This is an exercise in imagination, right? Because you're already spending all of your financial resources on the things that you believe are important. And so the money has to come from somewhere, and it's already there. It just requires a change in priorities.
