PROTECT THE FINANCIAL CAPITAL
With age, if you are 50 and over, you have accumulated assets (RRSP, TFSA, HOLDING, etc.) and your overall wealth has increased. Your debts have probably gone down a lot as well.
Insurance therefore protects a person’s net worth from taxation and market risks.
Be aware that upon death, some assets will be taxable depending on the market value, such as RRSPs, RRIFs, buildings, Holding, etc. It could be very expensive for the estate if the planning stage was not properly done.
Life insurance is therefore necessary in order to give beneficiaries the liquidity necessary to pay all of their taxes without diluting existing assets. The purpose of this insurance is not to enrich, but to preserve the accumulated inheritance.
It is for this reason that we opt more towards permanent insurance with fixed costs for life or even products that contribute to the insurer’s profits for the more fortunate.