Updated: Dec 10, 2019
Leveraging life insurance has a lot of appeal to affluent clients. After all, leveraging a policy allows the policy owner to benefit from the life insurance protection, along with using the capital they’ve built up in the policy for lifestyle or income purposes.
Back-end leveraging strategies, commonly referred to as Insured Retirement Plans (IRPs), are designed to supplement RRSP or RPP income.
Front-end strategies, or Immediate Financing Arrangements (IFA), let clients deduct
the interest cost since they are investing the proceeds of the loans into mutual funds, real estate or another qualifying vehicle with a reasonable expectation of profit.