Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Lifetime Insurance Policy Limits Simplified

7 Feb 2025 · 1 min

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A short YouTube transcript (Richard Canfield) explaining how lifetime insurance policy flexibility is constrained by insurer approval based on the applicant’s financial condition. He clarifies that a policy’s tax-exempt room can change year-to-year (for example when dividends buy additional coverage) and that unused exempt room cannot be carried forward — contrasting this with how RR (registered retirement) contributions work.

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The lifetime flexibility is actually lower because they won't approve the policy unless again, given your financial condition. It really just depends on the individual, depends on how the policy is portrayed, how it's illustrated, and then how cover letter is written to the insurance company to defend the rationale. The exempt room of the policy for that year has changed. Maybe because you got a dividend, the dividend bought more coverage, and they're just giving you more flexibility on the tax exempt room available in a given year. But if you missed it the year before, you still missed it the year before. Not carrying forward. There's no such thing as that. That's how RR contribution works. That is not how it works with an insurance contract.