A Fresh Perspective on Family Wealth Transfer and Healthcare Strategy

Here at Cove, we pride ourselves on continually embracing our roles as life-long learners. We recently dove into the topics of family wealth transfer and healthcare strategy, and the insights we’ve gathered thus far have been enlightening. We feel it’s such a potentially transformative area that we decided to share these insights and our new approach with you.

Imagine this scenario — one many of our clients find themselves in: You’ve spent decades building a robust portfolio — with stocks, RRSPs, real estate, and various other investments. Possibly a mix of personal assets or through your own company, and it’s all for one thing: safeguarding the future of your family. But, what happens when an unforeseen health issue strikes a beloved family member — be it your spouse, child, or grandchild?

In most cases, your financial strength allows you to step in and foot the health care bills, be it here in Canada, the US, or anywhere else globally where the best medical aid exists. Yet, it’s not all that straightforward.

Problem one: extracting funds for such costs might invite tax implications or face liquidity constraints.

Problem two: ensuring your loved ones receive the absolute best healthcare advice, treatment, and support can be complex.

Well, what if there was another way?

We’ve been working on a solution that might just disrupt the way you think about these challenges — transforming a part of your investable capital into an insured, tax-exempt, healthcare fund. This novel approach gives you the elasticity of contributions, growth of your investment without the tax implications, and perhaps the most notable benefit — direct and swift access to top-notch healthcare experts whenever the insured family member needs medical assistance. Plus, drawing out cash for health reasons is completely tax-free.

Sound intricate? It’s accomplished through a cash value life insurance policy.

In this strategically-structured plan, you hold the reins. You determine who gets insured: yourself, your spouse, your child, or even your grandchild. You handle the deposits to the policy according to your comfort and needs, thus creating a “Space to Breathe” — a financial cushion safeguarding your family’s future. The beauty of it all is the ease of transferring the policies to the insured individual, completely free of tax implications, once everyone is back to good health.

Life insurance serving as a sentinel for your family’s health — a novel notion, right? We won’t blame you if you’re a tad sceptical. However, the security and health of your family merit more than just a passing thought. So, why not look into it? You might find that the benefits far surpass what you’d initially imagined.

Interested in seeing how this can work for your own family? We’re just an email or call away, ready to walk you through every step, clarify any doubts, and help craft the perfect strategy for your needs.

Let’s explore these roads less taken, and perhaps, we might just make all the difference!