Empire Life Insight for February 7, 2025

Français

Q: Can life insurance be equivalent to a pre-tax return of 12%¹ on a non-registered investment?

A: Take a look at the two detailed case studies which illustrate how the death benefit of our recently redesigned Optimax Wealth 8 Pay and 10 Pay participating whole life plans might outperform a non-registered fixed income asset. If you have clients who are risk-averse and rely on non-registered fixed-income investments, this approach could potentially enhance their legacies.

Check out the case studies below and add them to your toolbox!

¹ Based on a tax equivalent Internal Rate of Return of the Death Benefit at end of policy years indicated for Empire Life Optimax Wealth 8 Pay Joint Last to Die policy with Enhanced Coverage dividend option for total coverage amount of $1,252,479 (base amount + Enhanced Coverage amount) issued on June 24, 2024, for healthy, non-smoking male and female life insureds, both aged 70 at issue, who both pass away by end of policy year indicated. The tax equivalent Internal Rate of Return of the Death Benefit is calculated assuming the fixed income investment amount at the end of the year indicated would be taxed at a marginal tax rate of 45%. 

TFSAs are one of the most popular saving and retirement accounts in Canada. Many Canadians invest their TFSA funds in High Interest Savings Accounts (HISA). But if your clients took a long-term approach to their TFSA, their funds could be working harder for them if invested in an Empire Life Class Plus 3.0 segregated fund TFSA.

Empire Life Vanguard ETF Portfolio GIFs (in F-Class/Fee for Service) can offer a compelling combination of cost-effectiveness and estate planning benefits, making them part of an efficient estate transfer solution for high-net-worth clients. Coupled with Empire Life GIF Preferred Pricing, clients get the benefits of a segregated fund at a cost that is more comparable to the underlying ETF.

* Lower-cost as compared to the cost of passing the funds through the estate

• Your clients have until March 3, 2025 to contribute to their RRSP for the year 2024.
• As per CRA rules, only the owner, spouse, and employer can contribute to the client's RRSP.  For TFSA only the owner can contribute. We cannot accept money from any other source.
• Please use My Advisor Dashboard for quick and easy deposits and new applications. If you choose to send in paper instead, please ensure to have the account number or application number on the cheque and ensure the cheque has the correct year (i.e. 2025).
• Please do not send in duplicates, only send one way (My Advisor Dashboard or email or fax or mail).
• Please use one-time PAD.
• If sending a cheque, please use same day or next day courier with tracking information. No exceptions will be given for late couriers.

We're pleased to announce we've launched a new corporate vision and mission statement as part of a brand refresh to reflect Empire Life's commitment to our customers, our Distribution Partners, our employees and our ongoing mission to help Canadians navigate life with confidence.

Empire Life's new vision:
Be the industry leader for service excellence and innovation.

Empire Life's new mission: 

Provide expertise and intelligent solutions to help Canadians navigate life with confidence.

Visit the MDRT website to download the qualifying letter and complete the appropriate sections.

• Email a scan of the completed letter to salescentre@empire.ca
• Mail the completed letter to:
  Empire Life, 259 King St East, Kingston ON  K7L 3A8 Attention: Leanne Dowling

Once received, we will complete the letter and return it to you.