Whole Life

I, Richard Wright CLU, Representative of Alberta Wealth Management Inc., wanted to talk to you about our new concept that improves your financial picture considerably. The concept is the infinite banker and how it creates wealth through high cash values. When it is set up, you'll have your own bank, where you can borrow for car payments (no more ridiculous interest rates), a large payment against your mortgage, marriages, pay off business debt or get financing for your business and hundreds of other needs. It also provides for retirement having the plan grow tax-free and free at death with unlimited coverage for the family.


This concept has 5 key principles such as:

  • Safety: Market volatility is very unpredictable, we all think the market is going up, but in a month, a day or even a minute “Bam” the market is down. Back in 2008 over 2 trillion was wiped out in the time it took you to brush your teeth, and people had to put their retirement on hold. We ride the roller coaster and hope for the best. Life Insurance companies have gone through every market cycle and have always paid their dividends and death benefits. They have gone through the great depression and zero interest rates in 2008. Life insurance is so safe that banks buy billions of dividend paying Whole Life to put on their books as tier one assets. The banks call this BOLI or bank-owned life insurance. If it’s good enough for the banks, it will be good enough for you. Life insurance is the safest investment with the most amount of growth for the least amount of risk.
  • Tax Benefits: Life insurance is tax-free while we are living and tax-free on our death. This is the last place that has this advantage. Remember, slow and steady always wins the race.
  • Access to Capital: We will need some capital during our lives; it can pay back student loans, credit card debt, pay down a mortgage on a wedding, and meet several other needs. 
    A good example for you; a small business owner client needed $100,000 for his business. He looked at his RRSPs, but there was too much tax. He looked at the bank, but with all the qualifying material it would take over two weeks and he needed it now. He had been paying towards his dividend throughout his whole life, and he was able to borrow the cash immediately. All it took was a call, and it was in his bank account in 3 days.
  • Income at Retirement: When we retire, we exchange our accumulation assets to income-producing assets. A good example is converting your RRSPs to RRIFs. When you pay the taxes and see what the money managers are suggesting to use as an interest rate on taking out income at 3%, with taxes it hardly seems worth it. If you lose assets 7 years prior to retirement or 7 years after retirement you may not be able to recover from these losses, and you may not have enough assets to keep you to 90 anymore. A well-engineered whole life with cash value will produce a higher income for life, and your income is tax-free when using a collateral loan with the bank. Whole Life is extremely important at retirement to provide a high income that doesn’t affect your OAS.
  • Leaving a Legacy: We all wish to leave something to someone when we are gone. Husbands worry about their spouses if he will leave enough for her when he is gone. The great thing about life insurance is that it enables you to exceed all your assets and not to worry about it; the Life Insurance death benefit bucket is always full to pay out to your beneficiaries.
    I remember working in one case, where the husband had recently retired as a chartered accountant. He and his spouse had 4 adult children that were dependent on them. This led them to live way below their lifestyle to keep as much money for the children when they were gone. I suggested purchasing a joint second to die Whole Policy would pay out upon their deaths. Now, they are able to live knowing that life insurance will look after the children when they are gone.

    I hope that this will motivate you to contact me to discuss this fantastic opportunity. The other issue is your current insurance is going way up in cost in the next 14 years. I know this is far into the future, but if your health declines, we won’t be able to look at this. So, please give me a call.

Employee Benefits

Offering employee benefits for your employee not only aids in their quality of life, it helps you select better candidates. A vast array of employee benefits attracts more candidates for open positions with your company, giving you a broad range of candidates. Below are some examples of the types of employee benefits we can assist you with:


Companies We Represent

Common Group Life & Health Benefits

Death Benefits

  • Basic life
  • Optional life
  • Dependent life
  • Basic accidental death and dismemberment
  • Optional accidental death and dismemberment


Income Replacement Benefits

  • Salary continuance
  • Sick leave
  • Short term disability
  • Long term disability


Extended Health Benefits

  • Hospital
  • Prescription drugs
  • Vision care
  • Private duty nursing
  • Hearing
  • Paramedical practitioners
  • Out-of-country coverage


Dental Care Benefits

  • Basic
  • Major
  • Orthodontic


Ancillary Benefits

  • Employee assistance
  • Wellness
  • Critical illness
  • Employee assistance


Health Care Spending Accounts (HCSA)

A HCSA is an individual employee account that reimburses the employee for health and certain non-health related expenses not covered by government plans or other plans (i.e. association/individual health plans or other group plans). A HCSA may be introduced on a stand-alone basis, as an adjunct to an existing plan to introduce an element of flexibility or as another option within a broader flexible benefits program.


Employers may choose to introduce HCSA for any of the following reasons:

  • Allows the employer to offer a new type of health-related benefits to employees without being locked into providing a benefit that may become too expensive
  • Delivers benefits tax effectively
  • Provides relief to employees if employee cost sharing is increased through features such as deductions and coinsurance
  • Allows employees to claim expenses


ASO Agreements

Most employers who self-insure enter into an administrative service only (ASO) agreement with an insurer or third party administrator (TPA) to administer the plan, with ultimate financial and legal liability for all plans costs remaining with the employer. The employer pays for various administrative services including adjudication and payment of claims. Administrative activities performed by the contracted service provider (i.e. insurer or TPA) under an ASO agreement due to advances in technology have contributed to the growth in self-administered plans.

Universal Life

Life Insurance is essential to all good planning when there is a need to protect your family against a sudden loss of income, it could insure a key employee or plan your estate. There are basically two types of Life Insurance: Term and Permanent. Term Insurance is well suited to meet short term protection needs at the lowest initial cost. Permanent Insurance will protect your family for your lifetime. There are also two types of permanent insurance: Participating Whole Life Insurance and Universal Life.


Universal life insurance gives you not only insurance, but an investment component that can offer significant tax benefits. The investment component invests excess premiums and generates returns to you, the policyholder.


Universal life offers variable premiums, and these insurance policies let you withdraw funds in the investment portion at any time.


You can also direct a larger portion of your premiums towards the insurance component if you need more coverage. Or you can direct the investment portion to various investments including bonds, mortgages, and equity.


AWM can show you how to maximize tax benefits available through universal life.

Term Life

This "pure" life insurance gives financial protection to your children, heirs, or estate upon death. Your premiums cover only the cost of insurance as there is no savings component.


This is a relatively inexpensive form of life insurance although premiums can rise over time. Most term policies expire at age 65.

Segregated Funds

Segregated funds are insurance products offered by life insurance companies and are similar to mutual funds, but with important added features. If the market value of these funds goes down, at least 75% of your principal is guaranteed. However, some funds—including funds that we offer guarantee your full principal.


These funds also offer creditor protection, which is a key benefit to all business owners. If someone launched a lawsuit against your company, the money you have in segregated funds would be exempt from litigation (certain conditions apply).


Segregated funds are eligible for registered plans and can flow capital gains, dividends, and interest income to investors. They may also flow through capital losses.

Critical Illness Insurance

Every business owner should own an "Executive Health Security Plan" to protect the company should he/she come down with an illness.


The way it works is that your corporation owns the Critical Illness policy on the business owner. Let's assume you own a $1,000,000 Critical Illness policy. If the business owner is diagnosed with one of the 26 covered illnesses such as a heart attack, stroke or cancer then the insurance company would pay the corporation the $1,000,000 tax-free. This lump-sum cash infusion could be used to replace the business owner while they are off work, or, it could be used to stabilize the company while the owner is recovering from the illness.


If the owner didn't have a claim for 15 years and remained healthy, they would personally receive 100% of the premiums back tax-free that had been paid for this protection. Should the owner pass away, 100% of the premiums paid would be returned to the owner's beneficiary (their spouse or estate for example), tax free. No matter which scenario above comes to pass, this policy will pay out a cheque, 100% of the time. The corporation would pay the Critical Illness premiums, while the owner personally pays for the Return of Premiums in case of continued good health or premature death.


To learn more about this extraordinary plan, you can reach me or I will call you for a 30-minute appointment.

Disability Insurance

Disability insurance will provide you with financial security by replacing a portion of your earnings when an accident or sickness occurs, which causes you to become disabled and unable to work or earn an income. Both personalized and business disability income solutions are available to help bridge the gap between income and expenses during a disability.

Annuities

Annuities are financial vehicles designed to provide you with periodic income payments over a specified period of time. Insurance companies issue all life annuities, while other financial institutions also may issue fixed-term annuities.


You can purchase annuities from registered (RRSPs) or non-registered funds. Registered annuity payments are fully taxable, while payments from non-registered annuities are taxed only on the interest portion.

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