“Managing non-registered assets is a big challenge, and the problem only gets worse the longer you wait to set up the estate,” Gardiner says. “Most people don’t want to trigger capital gains taxes just to make their estate more efficient. But there are strategies, like harnessing tax losses from existing positions, that can help.”
What sets Beneva apart is its flexibility with non-registered investments. “Unlike most insurance carriers, we offer different levels of protection for non-registered accounts,” Gardiner explains. “And the best part? You can adjust your level of contractual guarantee without triggering a taxable event.”
In contrast, most insured investment products require clients to sell and repurchase contracts to change coverage levels, which results in a deemed disposition and capital gains taxes. “With Beneva, clients can adjust their protection levels as they move through the investment lifecycle, right up to age 85, without tripping any taxable events,” Gardiner says.
This flexibility is especially important because it allows clients to increase their estate protection over time without incurring unnecessary tax liabilities. “It’s a major advantage that isn’t well understood—even by seasoned financial advisors,” Gardiner notes.
Not all Canadians are comfortable with taking on market risk and many want to protect their legacy. This is especially true amongst older Canadians that are looking for tax advantaged guaranteed income. Beneva, hosting both insurance and investment solutions, promotes the Guaranteed Income Enhancer strategy. “This strategy combines an annuity with a life insurance policy,” Gardiner explains. “The annuity provides guaranteed income, covering the insurance premiums, while the life insurance policy ensures that a specific amount is passed on to the heirs. It’s a way to provide income without market risk, along with a substantial after-tax benefit compared to other low-risk options.”
