Advisor Sasha Zhang shares strategies for growing and preserving wealth.

Advisor Sasha Zhang shares strategies for growing and preserving wealth.

150-year-old Financial Product a Best-Kept Secret

Three strategies for growing and preserving wealth

By Sasha Zhang, CF Canada Financial*

You might never have imagined that the age-old life insurance policy could be an ultimate tax haven. So believes Sasha Zhang of CF Canada Financial, a one-of-a-kind life licensed adviser who specializes in structuring certain life insurance policies that pay good dividends and yield high cash value. “I make millionaires,” Zhang says.

While that’s a rather provocative statement, below she uses an illustration from a life insurance company that she says has been paying an average of 8.4% policy dividend over the past 25 years.

Say you were to invest $20K annually for eight years in your 21-year-old son’s life insurance policy. By age 65 he would have about $1 million in cash value and a $2 million estate (a tax-free death benefit). Since you would own this policy, you would have, during your lifetime, access to the cash in the form of a policy loan. The best feature of this type of asset is that it functions as collateral and continues to appreciate even while the loan is outstanding.

Asked why most people do not know this strategy, Sasha attributes this to two factors: 1. The investment advisers at your local bank may not be life insurance licensed and therefore could not sell this product; 2. Even among those who can, sadly, the majority of life insurance agents don’t have the expertise in this specialized type of planning.

Another little known fact: you may own multiple life insurance policies for yourself, your children and grandchildren, thus creating a family life insurance trust for wealth transfer. Get your estate planning done with named beneficiaries and give the gift that continues to grow and give. Very clever!

Sasha also works with business owners to structure corporate-owned life insurance contracts funded with retained earnings. The generous cash value in such plans can be collateralized for a bank loan to provide income. Jim Pattison signed a letter to Sasha personally endorsing the value of this wealth management method. He attributed his success in securing a loan from RBC to his high cash value life insurance policy, which he used as collateral for funding his first car dealership.

For clients who have no heirs, Sasha helps them secure lifetime income with Guaranteed Investment Funds and other products issued by insurance companies. In addition, she advises clients on leaving legacies to benefit our communities.

To provide the best service to her clients, Sasha treats her clients as friends. Sasha asks clients to call directly at 250-813-2121 or email sasha.zhang@canadafinancial.ca.

Recommended reading:

Live Your Life Insurance – Kim Butler

*DISCLAIMER:

The information and content of article is intended for general informational purposes only. It is not intended to constitute insurance, legal, financial, tax or any other professional advice or services. You should consult a qualified professional advisor before making any decision relating to the information contained in this article.

The materials in this article are provided strictly on a reference basis only. This article makes no representation or warranty concerning the accuracy of the information and content implied or statutory, to the greatest extent permissible by law, including, but not limited to, all warranties or accuracy, completeness, merchantability, performance, and fitness for a particular purpose.

Just Posted

A patio built by The Village is shared by three eateries in Estevan. (Christine van Reeuwyk/News Staff)
Oak Bay eateries sharing communal patio space in Estevan Village

The Village invested $25,000 in streetside patio, hopes to make it permanent

Victoria police are searching for high-risk missing woman Chloe Morrison who was last seen in Victoria June 13. (Courtesy of VicPD)
MISSING: Chloe Morrison, last seen in Victoria

Morrison, 25, was last seen shortly after 2 p.m. June 13

Proposed design for the Topaz Park bike and skate park elements. (Courtesy City of Victoria)
Victoria requesting feedback on Topaz Park redesign

Public input now being taken for proposed skate, bike park ideas

An SUV sits where it crashed through the front window of the 2:18 Run store in Fairfield Plaza, after the driver appeared to lose control on Monday afternoon. (Photo by Phil Nicholls)
Driver crashes through front window of Victoria running store in Fairfield

Phil Nicholls of 2:18 Run said crash sounded like an earthquake at first

Sasha Perron of Langford is preparing to run a half marathon on Saturday, 10 kilometres Sunday, 21.5 km on Tuesday and so on until he’s totalled 216 kilometres. (Jake Romphf/News Staff)
Indigenous man to run 215 kilometres, plus one for children waiting to be found

Donations to Sasha Perron’s fundraiser to benefit Indian Residential School Survivors Society

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Kelowna-Lake Country MLA Norm Letnick, assistant deputy speaker at the B.C. legislature, presides over committee discussions. The legislature is completing its delayed spring session this week, with most MLAs participating by video conference. (Hansard TV)
B.C.’s daily COVID-19 infections dip below 100 over weekend

Only 68 new cases recorded Monday, four additional deaths

Neighbours fight a small late-night bush fire with garden hoses and shovels in Cinnabar Valley on June 5. They couldn’t get help from local fire services because the fire was located in an area under B.C. Wildfire Services jurisdiction. (Photo courtesy Muriel Wells)
Neighbours on edge of Nanaimo city limits left to put out bush fire themselves

Cinnabar Valley residents tackle fire with hoses and buckets for two and a half hours

Darren Campbell’s truck (pictured) was stolen when he stopped to check on a car in a ditch on Cowichan Bay Road on Monday morning. (Facebook photo)
Vancouver Island Good Samaritan’s truck stolen in nasty trick

‘Try to be a Good Samaritan and my $20,000 truck gets stolen right under my nose’

The Kamloops Indian Residential School is photographed using a drone in Kamloops, B.C., Monday, June, 14, 2021. The remains of 215 children were discovered buried near the former school earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Communities grapple with what to do with former residential and day schools

Some tear them down as a tool to help healing, others repurpose them as tools for moving forward

Creative handmade signs abound at the June 13 Tofino rally for old growth trees. (Nora O’Malley photo)
VIDEO: Tofino stands in solidarity for Fairy Creek Blockades

Over 150 supporters attend rally hosted by Friends of Clayoquot Sound

Most Read