Expertise.
Working with Crownston Capital Corp, gives you access to strategic advise specifically tailored to your needs Whether you are a Self Employed Individual looking to diversify your income, a Business with Retained Earnings or Looking for the most efficient way to create a retirement income, Crownstons team implements a needs base analysis to find a suitable solution that fits your budget.
Providing you the knowledge necessary to protect you, your family and your income, our expert consultants can guide you in the direction to get Tax strategies, Estate Planning, Retirement Income and Investment opportunities. Working with these experts we will be able to determine how much you have access to, how much you need access to and what your risk appetite is.
Once you have a detailed report, our team will introduce options to speed up the growth of your cash value. Monitoring your investment to ensure it continues to be profitable annually. Our experts have decades of experience in advising clients ways to implement and structure growth that is necessary to meet their goals.
Solution.
Crownston's experts work with your advisor to implement an Immediate Financing Arrangement (IFA), an individual purchases a permanent insurance product tailored to their needs, as determined by their advisor. All available payment duration options—such as a 10-year quick pay, payable over 20 years, or payable for life—can be suitable for implementing an IFA. Policyholders make this decision with their advisors based on their objectives and needs. While this strategy can be employed by individuals, it is most commonly favored when the contract holder is a company and the insured is a shareholder (or another key person).
The company pays the premiums for the life insurance policy to ensure the total cash surrender value grows as quickly as possible, in accordance with the tax limits established by the Income Tax Act (ITA). The cash surrender value of the life insurance policy accumulates within a tax-sheltered structure. It is recommended to select the paid-up additions dividend option. Depending on the product version selected, as well as the contract holder’s needs and budget, it is advisable to maximize the use of the additional deposit option (ADO). The cash surrender value is then used as collateral to secure a loan or line of credit with an external financial institution. Loans may be granted either to the company or directly to the shareholder. Additional credit facilities, such as lines of credit, can also be utilized for this strategy.
The Immediate Financing Arrangement (IFA) is a strategy designed for sophisticated, high-net-worth clients of any age who have a significant need for permanent life insurance. Interested individuals must possess a high tolerance for risk and a clear understanding of financial leverage strategies. Additionally, borrowers implementing an IFA must be capable of generating sustainable, long-term taxable income to fully benefit from the interest deduction and other advantages of the strategy.
Its imperative the borrower invests the borrowed funds to generate income. The borrower has several options. When the shareholder is the borrower, the amounts can be reinvested as an advance to their company or invested directly in another project to earn income.
Crownston works with third party innovative wealth management teams that addresses the entirety of your life—your family, your business.
OPTION 1
Scotia Wealth Management
As part of a leading full-service investment management firm, we deliver relevant solutions and tailored service to enable you to delegate your day-to-day investment decisions to our experienced team. Our dedicated relationship managers have provided investment advice and service to some of Canada’s most successful individuals, families, businesses and foundations for over 140 years. They collaborate with Scotia Wealth Management specialists who possess deep knowledge and expertise across a range of financial disciplines, to build an investment management plan with your goals in mind. Then, they actively manage your investment decisions relying on our disciplined investment philosophy, rigorous research and strong governance structure. Not only can Scotia provide the IFA, their team of experts advise on investment options that work together to ensure they generate profit when considering the loan to value.
Eligibility requirements, limitations and exclusions apply to the types of insurance products referenced. References to tax treatment are based on the principal Canadian federal tax laws and regulations which are subject to change. When making tax planning decisions, you should consult with your tax and legal advisors.
OPTION 2
MIC - Mortgage Investment Corporations
Crownston's has partnered with a few MIC's in Vancouver where you can pool your borrowed funds into real estate-backed mortgages for consistent returns. Using the cash value of a whole life insurance policy to invest in a Mortgage Investment Corporation (MIC) can be a smart way to generate additional income.
Higher Returns: MICs often provide returns of 6-10%, potentially outpacing the policy loan interest rate.
Diversification: MICs invest in a mix of real estate-backed mortgages, reducing individual property risk.
Steady Income: Regular distributions (monthly or quarterly) provide reliable cash flow.
Policy Growth Maintained: Policy cash value continues to grow while funds are reinvested.
Leverage Benefits: Your money works in two places, enhancing wealth-building potential.
OPTION 3
Equity Investment returns
Using Whole Life Policy Cash Value to Invest with Property Development Projects Canada and Mexico By borrowing against this cash value, you can fund investments in high-potential development projects in Canada and Mexico. This strategy allows you to grow wealth while keeping the benefits of your policy intact. How It Works Access Policy Cash Value: Borrow funds from your policy at a competitive interest rate without liquidating the policy or disrupting its growth. Invest in Development Projects: Allocate these funds to lucrative real estate or infrastructure developments in Canada and Mexico, capitalizing on emerging opportunities in these markets. The returns are high enough to potentially provide for the following years premium required.
High Growth Potential:
Canada: Benefit from the stability and growth of Canada’s robust real estate and infrastructure sectors.
Mexico: Leverage the rising demand for tourism, housing, and commercial spaces in Mexico’s rapidly developing regions.
Diversification: Investing in projects across two countries provides geographic and economic diversification, reducing risk.
Attractive Returns: Development projects often offer higher returns compared to traditional investments, especially in high-demand areas.
Leveraged Wealth Building: By using borrowed funds, you retain your policy’s growth potential while generating additional income streams from investments.
Tax-Efficient Strategy: Policy loans are not taxable, and returns from development projects may be structured for optimal tax benefits.
Product.
Crownston Capital Corp is your trusted partner in maximizing the potential of your whole life policy’s cash value. Whether you’re investing in MICs, leveraging the expertise of Scotia Wealth Management or BMO Wealth Management, or exploring high-growth property developments in Canada and Mexico, we ensure your investments are strategically aligned with your financial goals. With Crownston, you gain access to tailored strategies, diversified opportunities, and annual reviews to keep your portfolio optimized. By carefully managing the relationship between borrowed funds and returns, we help you build sustainable wealth while preserving the benefits of your whole life policy.
Choose Crownston Capital Corp for a partner committed to your financial success today and into the future. Contact us to start growing your investments with confidence.
