New rules affecting the taxation of life insurance policies apply to policies
issued after 2016.
Clients who seek level cost insurance and acquire coverage in 2016 can achieve significantly better financial benefits than will be available after the new year.
This Viewpoint lists the various insurer deadlines to benefit from 2016 rates and rules and includes the recently announced deadline for RBC Insurance.
The opinions expressed in this memorandum are strictly those of Westward Advisors Ltd. This memorandum is for information purposes only and is not legal or tax advice.
Meeting application and underwriting requirement deadlines does not guarantee success.
To benefit from grandfathered 2016 rates and rules for life, the new coverage must be issued prior to 2017. The applicant cannot control the insurer’s underwriting timeline, and therefore success is at the mercy of the time it takes the insurer to underwrite and issue the new coverage.
Applications involving any of the following should expect longer underwriting timelines and should proceed without delay to maximize the probability of success:
Large amounts of insurance
Complex health issues
Life insured older than 65
Westward’s Strategic Implementor team helps clients obtain the best insurance offer possible. It includes experienced underwriters who streamline the process and guide applicants through each step. We collect the information, arrange appointments, make sure the paperwork is in good order, and package the application.
Please call us if assistance is required in quantifying the benefits of acquiring a life insurance policy now as opposed to after 2016.