Overcoming the tax liability of your RRSP or RRIF

YOU SITUATION

You have a sizeable amount built up in your Registered Retirement Savings Plan (RRSP) or Registered Retirement InCome Fund (RRIF). But what happenS if you die before you use the money?
If you have a spouse, you can tranSfer it to that person and it will stay intact. However, if you do not have a spouse, or if your spouse passes away, your heirs stand to lose up to half the money to taxes.

YOU STRATEGY

You can protect the entire balance of your RRSP or RRIF with Flex Account, National Life's universal life insurance. Just purchase enough coverage to protect the amount of your estate value you would otherwise pay to Revenue Canada. And because à death benefit from a life insurance policy isn't 't taxable, the advantages far outweigh the cost.

Consider this example:
you have a RRIF balance of $200,000. If you pass away, you have an additional net taxable income of $200,000 in the year of your death. If you assume Revenue Canada taxes this amount at a rate of 50 per cent, your heirs would have to write a cheque for $100,000 to cover the tax.
However, if you invest in a Flex Account policy that pays à tax free death benefit of $100,000, your total balance is restored to $200,000.

You can enjoy the full value of , your life's work and pass your entire estate to your heirs.