Universal life insurance offers a level death benefit. Similar to a mortgage on your home, you can pay the policy off over a period of time or you can pay the premium for life. Traditionally this type of policy is for a pure insurance need.

A participating whole life insurance policy is an asset accumulation, estate, and retirement planning vehicle. It is designed to enhance the cash value in a long-term dividend interest rate earning asset class while providing guaranteed cash value and permanent life insurance. This policy is currently classified by the Canada Revenue Agency (“CRA”) as a tax-exempt life insurance policy, and we assume that the current tax rules regarding life insurance will remain.

There are five reasons clients use participating whole life as an asset class.

• Tax free growth. Similar to an RSP, funds inside a participating whole life policy grow tax free.
• Performance. Once dividends are paid, the increased cash value and death benefit value are guaranteed. The current dividend interest rate is updated annually.
• Asset allocation. Participating whole life portfolio is well recognized for its asset allocation.
• Guarantees. With participating whole life, every year you get a policy statement the cash value and estate benefit value are guaranteed. Unlike stocks, bonds and mutual funds which fluctuate year by year, once dividends are paid, these values are vested.
• Estate issues. Life insurance is paid tax free to your corporation and tax efficiently to your heirs.

Watch this video to understand how your corporation can use life insurance as an asset class

To assist in preparing for your nurses/doctors visit, we recommend that your appointment be scheduled in the morning, preferably before breakfast and that you are fasting.

What is a paramedical exam?

A paramedical examination is an interview with you to collect information about your medical history. This information allows the insurance company to perform a comprehensive evaluation of your current health. The exam usually includes recording of height, weight, blood pressure and pulse. The exam may also include the collection of blood, urine, oral fluid, and an EKG and/or X-ray, depending on the insurer’s underwriting guidelines for the applicant’s age and insurance amount.

Estimated examination time

10 to 20 minutes for blood draw and urine 20 to 30 minutes for paramedical exam, blood draw and urine; 30 to 45 minutes for paramedical exam, blood draw, urine and EKG.

What if blood has to be drawn?

If a blood sample is required by the insurance company, a medically trained professional will perform the draw. Most companies use single-use sterile, disposable needles to collect the specimen and vinyl gloves are worn.

What is an EKG?

If an electrocardiogram (EKG) is required by the insurance company, it may be performed at the time of the examination. An EKG records electric impulses of the heart and testing is usually complete in less than 10 minutes.

What happens when the exam is complete?

The paramedical examination and any additional requirements are forwarded to the insurance company. Specimens obtained during the examination are sent to a designated laboratory and the results forwarded to the insurance company for review.

In order to obtain the best possible results, it is recommended you:

• Fast at least 8 hours prior to the appointment.
• Limit salt and high-cholesterol foods 24 hours prior to the exam.
• Avoid strenuous exercise 12 hours prior to the exam.
• Refrain from drinking alcoholic beverages for at least 12 hours prior to the appointment.
• Drink a few glasses of water prior to the appointment.
• Provide any history of problems associated with providing a blood sample.
• Have available names, addresses and phone numbers of any doctors or clinics visited in the last 5 years as well as current medications.
• Ladies, please mention to the examiner when making your appointment if you will be menstruating at the time so that a better time may be arranged.