Life insurance can play an important role in retaining your net estate value. You can create a fund that can be used to pay taxes owing at death. This strategy involves estimating your final tax bill, and redirecting money that you do not require for living or lifestyle expenses to an insurance contract. The insurance then replaces the value of your estate you lose in taxes, greatly reducing the overall tax burden on your estate and your heirs.

The most cost-effective policy is "second to die insurance", which covers both you and your spouse, and pays the death benefit only when the death of the second spouse occurs, which is when the tax liability becomes due. The cost for this "second to die" insurance is usually 1% to 2% of the death benefit, annually, but will depend on your age, gender, smoking status and overall health.

All insurance products are sold through ScotiaMcLeod Financial Services Inc., the insurance subsidiary of Scotia Capital Inc., a member of the Scotiabank Group. When discussing life insurance products, ScotiaMcLeod advisors are acting as Life Underwriters (Financial Security Advisors in Quebec) representing ScotiaMcLeod Financial Services Inc.

The information contained on this website is for use by persons resident in Canada only.