Episode 25: Using Permanent Insurance to Cover Capital Gains

Want to pass on your cottage—or other legacy assets—without leaving a tax burden behind? Permanent life insurance can be a strategic way to cover capital gains and preserve your estate for the next generation. Learn how in this episode of Money Monday.

    Darren Devine, CFP®, CLU®

    Financial Planner, Sun Life
    President of Devine and Associates Financial Services Inc.

    Hello, and welcome to Money Monday, where we help simplify your financial journey. I'm Darren Devine, Financial Planner with Sun Life and President of Devine & Associates.

    When people think about life insurance, they often picture it as just a way to provide for loved ones after they’re gone. But did you know that permanent insurance can also be a powerful estate planning tool?

    Let’s say you own a family cabin or a valuable investment property that you want to leave to your children. When you pass, your estate could face a hefty capital gains tax, potentially forcing your heirs to sell that cherished asset just to cover the bill.

    This is where permanent life insurance comes in. It can provide a tax-free payout that can cover capital gains taxes, helping to ensure your loved ones inherit the property without financial burden.

    Beyond that, permanent insurance can give your estate the cash it may need for final expenses, outstanding debts, or even charitable giving. Instead of leaving your family scrambling, you’re leaving them with security, stability, and a clear path forward.

    If you’re looking to protect your estate and make sure your assets pass to the next generation as smoothly as possible, let’s talk about how permanent insurance can help.

    Thanks for tuning in. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!