Unlock Your Financial Potential with an IFA Life Policy

At BMI, we specialize in leveraging the power of permanent life insurance policies through our Immediate Financing Arrangement (IFA). This sophisticated financial strategy is designed to offer policyholders of Universal and Participating life insurance policies the dual benefit of permanent insurance coverage and immediate access to cash. Perfect for reinvesting in income-producing assets or fueling business growth, the IFA is a game-changer for those looking to optimize their financial strategies.

1. Tax Benefits

• Interest Deduction: Save on taxes with deductible interest payments, as per the Income Tax Act (ITA).
• Tax-Sheltered Growth: Enjoy accelerated growth on your life insurance policy without tax implications.

2. Access to Cash

• Non-Taxable Loans: Secure loans with your life insurance policy as collateral, providing cash flow with no immediate tax impact.

3. Flexible Financing

• Reinvestment Opportunities: Utilize the funds for business expansion or other income-generating ventures.

4. Enhanced Estate Value

• Capital Dividend Account (CDA): Grow your CDA for tax-free capital dividends, increasing the value of your estate.

1.  Policy Purchase: Acquire a participating or universal life insurance policy tailored to your needs.
2. Loan Agreement: Set up a loan with an external financial institution, using your life insurance policy as collateral.
3. Premium Payments: Maximize premium payments to boost your cash surrender value.
4. Loan Issuance: Obtain loans up to a set percentage of the policy’s surrender value or premiums paid.
5. Reinvestment: Invest the borrowed funds to generate additional income.
6. Interest Payments: Manage interest payments annually, with potential refinancing options.
7. Annual Review: Reevaluate and adjust the strategy as needed.
8. Death Benefit: Upon the insured’s death, the policy’s death benefit is paid out tax-free and used to settle any outstanding loans.

 The IFA strategy is ideal for high-net-worth individuals or companies seeking a sophisticated approach to permanent life insurance and financing. It requires a good understanding of financial leverage, a tolerance for risk, and the ability to generate sustainable long-term income.

Considerations:

• Engage with your financial advisors, accountants, and tax specialists throughout the process.
• Ensure you can manage the financial obligations and understand the potential tax implications.