Indexed Universal Life (IUL)
In Canada, we don’t have 401(k)s — but we do have powerful strategies like Universal Life Insurance that offer similar long-term benefits. One such tool? Indexed Universal Life (IUL) or Participating Life Insurance with cash value growth.
It combines protection, growth, and tax efficiency — all in one.
1. What Is It and How Does It Work in Canada?
IUL in Canada works similarly to the U.S., though it’s often delivered through Universal Life or Participating Whole Life insurance. The key benefits include:
- A guaranteed death benefit
- A cash value that grows tax-deferred
- The option to borrow against the policy tax-free
The cash value can be invested in market-indexed accounts (in IUL) or insurance company portfolios (in Whole Life) depending on the structure.
2. Tax-Free Retirement Strategy
In retirement, you can borrow against your policy without triggering taxes. This creates a stream of tax-free income you can use:
- Without impacting government benefits like OAS or CPP
- Without being affected by RRIF withdrawal limits
- While still protecting your family
3. Why Canadians Use IUL or Whole Life for Wealth Building
✅ Long-term tax shelter
✅ Flexible access to funds
✅ Estate planning and intergenerational wealth transfer
✅ Alternative to RRSP/TFSAs for high-income earnersIf you’re maxing out your TFSA or seeking diversification, IUL or Participating Whole Life could be a smart next step.
How Veracity LD Can Help
At Veracity LD, we help Canadian families build tax-free income plans using life insurance, retirement strategies, and estate tools. We’ll walk you through the pros, cons, and setup so you don’t just get a policy — you get a plan.
📞 Canada: +1 (438) 871-4889
📧 info@veracityld.com
🌐 veracityld.ca
📅 Book your free consultation
