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The secure site and tools will be temporarily unavailable starting Friday April 19 @ 9pm until 9pm on Saturday April 20 ET for system maintenance. Thank you for your understanding.
If you have a successful company, you probably have a corporate investment portfolio or excess cash flow that’s not needed to fund business operations. You may be planning to leave as much of this value as possible to your heirs. The amount your children receive after corporate and personal taxes may not be nearly as much as you had planned. Fortunately, you can help maximize the after-tax value of these assets using the corporate investment strategy.
Meet Mark and Susan. Both 55, they own a successful company and have accumulated a significant corporate investment portfolio in their holding company, HoldCo. What they don’t use for retirement they want to leave to their children. After working with their advisors, they determined their business will continue to generate $75,000 of excess corporate cash flow. Mark and Susan want to invest these funds and continue building a legacy for their children. They’re also concerned about the large tax liability at death. Their advisor estimates their total insurance need is approximately $2.6 million.
By age 85 (the average life expectancy of the last survivor), Mark and Susan’s estate will be worth $1.8 million more than if they had continued to rely on taxable investments.
The corporate investment strategy (CIS) is a cost-effective way to ensure that the fruits of your hard-earned business success go to your children, not to taxes.
Corporate investment strategy
Call your advisor today to see how the corporate investment strategy with SunUniversalLife II could work for your business.
Many affluent individuals accumulate taxable investment funds in their corporations, and end up not needing this money to support their own lifestyle during retirement. An exempt life insurance policy can be used to significantly increase the estate value of corporate owned investments.
We provide a comprehensive set of tools to help you illustrate and present this strategy to your clients.
printable copy: Guide
Seminar: Reviews the use of corporate-owned life insurance to increase the estate value of corporate-owned investments, with graphic presentation of the strategy's mechanics and benefits, and mention of some of the planning issues. This seminar is available from your Regional Sales Director. Contact your Individual sales support team for details.
This information is being presented with the understanding that it is intended for information purposes only. Unless specifically stated, the values and rates presented are not guaranteed. No one should act upon the examples/information without a thorough examination of the legal/tax situation with their own professional advisors, after the facts of the specific case are considered.
Sun Life Assurance Company of Canada is a member of the Sun Life Financial group of companies.
© Sun Life Assurance Company of Canada, 2019.
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