One of the major players in the financial planning industry in Canada is the Investors Group. The Investors Group serves its clients by providing them with high-quality financial planning services, mutual funds and other investment products such as Registered Retirement Savings Plans, Registered Retirement Income Funds and Guaranteed Investment Certificates. In addition, the Investors Group gives its clients access to insurance products through a number of companies it has partnerships with. Although insurance is not typically considered a part of the financial planning business, the Investors Group feels that it should be; it makes sense that a good financial plan would factor in risk protection. Through the combination of financial planning advice and insurance products, the Investors Group hopes to help its over one million clients achieve financial security. The Investors Group’s parent company is IGM Financial Inc., which is listed on the Toronto Stock Exchange under IGM. The Investors Group started doing business in Canada in 1926, and it’s been going strong ever since. By 1950, the Investors Group started selling mutual funds in Canada.
Although the Investors Group has been around for quite a while, it only got into the life insurance business far more recently. Clients of the Investors Group can get life insurance from four different companies that are partners with the Investors Group: Canada Life, Great-West Life, Manulife and Sun Life. The Investors Group chose these specific companies to partner up with because they are stable and financially sound companies that care about their clients and show it through their exemplary customer service and high-quality insurance products.
There are plenty of reasons why the Investors Group feels that it’s a good idea to get life insurance. For example, although Canada doesn’t have death or inheritance taxes, your money may still be subject to taxes upon your death. One way this could play out has to do with capital gains; when you die, the government declares that it’s as if you sold all of your capital assets, and thus, your heirs are required to pay taxes on any capital gains. Savings in registered plans are also taxed after your death. One way to bypass this and to keep your family from losing out would be to bequeath your capital property to your spouse; this would defer any tax consequences. However, upon your spouse’s death, those same consequences would kick in yet again. To ensure that there will be money left over for your family to inherit after the death of yourself and your spouse, what you can do is buy a joint second-to-die life insurance policy. What happens under this type of life insurance policy is that upon the second spouse’s death, the policy will pay out. The death benefit from such a policy tends to be tax-free, and that money can be used to pay off the taxes, leaving the remaining capital assets for the family. To achieve this goal, you could buy two single-life policies instead, but it’s cheaper to buy a joint one.