FAQs
Want to know more about Lifestyle Legacy or Whole Life Insurance?
You’re in the right spot. Browse our FAQ for answers to the most common questions we get. Don’t see your question here? Feel free to ask us!
Questions About Lifestyle Legacy
What does Lifestyle Legacy do?
We specialize in finding innovative solutions to financial problems using Whole Life Insurance.
Who are the founders of Lifestyle Legacy?
Jamal Khan and Dean Ara are the founders and partners of Lifestyle Legacy. Learn more about them here.
Which regions does Lifestyle Legacy serve?
We serve clients in British Columbia, Alberta and Ontario.
What makes Lifestyle Legacy stand out?
Unlike competitors, we take full advantage of Whole Life Insurance’s unparalleled potential to deliver elegant, straightforward, and fully customized solutions. Our mission is to bring this fantastic product to a broader audience.
How does Lifestyle Legacy stay current with financial trends and regulations?
With our commitment to ongoing professional development and financial education, our team stays updated on the latest financial trends and regulations. This ensures our strategies and advice are always effective and relevant.
Who underwrites Lifestyle Legacy’s insurance policies?
Our policies are underwritten by reputable Canadian insurers, such as Manulife, Equitable Life, and Sun Life.
Our Services
What services does Lifestyle Legacy provide?
We offer a range of financial services, including minimizing capital gains, tax-efficient retirement planning, RESP alternatives, and more. Read more about our services.
What makes Lifestyle Legacy different from other financial advisors?
Lifestyle Legacy is built on a foundation of personal experience and a commitment to making financial products and services accessible to average Canadians. Our founders’ unique backgrounds bring a diverse perspective to financial planning, ensuring a holistic approach to your financial needs.
How does Lifestyle Legacy personalize financial plans?
Our tailored approach to building your unique legacy begins with a thorough consultation to assess your financial situation and ends with customized check-ins to ensure you’re on track.
How does Lifestyle Legacy structure its fees?
Our fee structure is flexible, transparent, and tailored to your needs. So whether it’s flat-rate, asset-based, or a combination, we ensure that you fully understand how fees work in your specific plan.
Is there a minimum investment or policy requirement?
There is no official requirement, but we generally recommend insurance policies that start at $250 per month. Please contact us to discuss your specific situation and we’ll work with you to find the best way forward.
If I book an appointment with you, will my financial information be confidential?
Absolutely. We prioritize confidentiality and privacy. All client information is securely handled and protected in accordance with Canadian privacy laws and regulations.
What is the process for becoming a client?
The process begins with a consultation to understand your financial goals and needs. From there, we conduct a comprehensive financial analysis and present you with a customized plan. Once you are comfortable with our approach, we proceed with implementing your personalized financial strategy. Book an appointment with us to get started!
The Basics
What is Whole Life Insurance?
Whole Life Insurance is a unique form of life insurance that can also be used as an investment. It provides lifelong coverage and builds cash value over time. Learn more about it in our quick guide.
How can Whole Life Insurance be used as an investment?
Whole Life Insurance provides guaranteed returns and dividends (payouts based on the insurance company’s profits). This means you can expect steady growth of up to 5% annually, all while enjoying the tax advantages of an insurance policy.
What are the key benefits of Whole Life Insurance?
A Whole Life Insurance policy offers complete protection with opportunities for growth. You get a guaranteed death benefit, investment potential with guaranteed returns, and access to cash when you need it. Plus, whole life policies generate reliable* dividends, which provides you with a share of the insurer’s profits. Read more about its benefits here.
*Canadian underwriters are a bedrock of stability, growth, and consistency — they have not missed a dividend payment for over a century.
How can I calculate the returns on a Whole Life Insurance policy?
The easiest way to calculate your policy’s expected returns is to ask your advisor to do it for you. If you prefer to do it yourself, you could use the policy proposal package we provide.
Can a Whole Life Insurance policy replace an RRSP, RSP, or TFSA?
No. A Whole Life Insurance policy does not replace these government-sponsored programs. But it can be a useful addition (especially for business owners or individuals looking for tax-advantaged investments).
What’s the difference between participating and non-participating Whole Life Insurance policies?
Participating Whole Life Insurance policies let you share in the company’s profits each year, which boosts the cash or investment part of your policy. Non-participating policies don’t offer this, so their cash value is lower.
Why haven’t I heard about Whole Life Insurance before?
Many institutions choose not to promote Whole Life Insurance because it’s not in their interests, even if it’s beneficial for you. The Canada Revenue Agency (CRA) doesn’t want you to enjoy valuable tax advantages and banks would rather sell you higher-commission products like mutual funds or term life insurance to boost their profits. Canadians deserve better — that’s why we’re on a mission to raise awareness about this powerful financial tool.
Suitability
Who is an ideal candidate for Whole Life Insurance?
Whole Life Insurance is perfect for you if you:
- seek a low-risk, diversified investment with stable growth
- save money consistently and can commit to a long-term savings plan
- have minimal debt, prioritize diverse investments
- already maximized your TFSA and RRSP contributions
Who is NOT an ideal candidate for Whole Life Insurance?
Whole Life Insurance might not be a good fit if you:
- have significant debt (e.g., it’s advisable to prioritize paying off credit card debts first)
- lack good savings habits and have a poor history of committing to a budget
- prefer to go all-in on one investment and dislike diversifying your portfolio
- expect high returns immediately
How can real estate owners benefit from Whole Life Insurance?
Real estate owners, especially ones with impressive portfolios, can use the tax-free death benefit that comes with Whole Life Insurance to pay pennies for the dollar on capital gains taxes.
How can someone use Whole Life Insurance to prepare for retirement?
If you’ve already maxed out your RRSP and TFSA contributions, you can use a Whole Life Insurance policy to create an insured retirement plan. It’s a great way to [gain access to cash without facing heavy tax implications.
How can business owners leverage Whole Life Insurance?
Business owners can use Whole Life Insurance to increase their financial flexibility, maximize their access to cash and enjoy significant tax advantages. They can also use Whole Life Insurance as a risk mitigation tool to offset potential losses if they’re reliant on a key employee.
Premiums and Costs
What affects premium costs?
Premium costs vary based on factors like health, gender, lifestyle choices (like smoking or engaging in high-risk activities), and age. Younger individuals typically pay less because they have a longer life expectancy.
How often do I need to pay insurance premiums?
You can pay insurance premiums on a monthly or annual basis — whichever you prefer.
Are there any other costs for the insurance policyholder aside from the premiums?
No, all fees and expenses are included in the premium payment.
What happens if I miss a premium payment on my insurance policy?
The insurance company will usually remind you to pay if you miss a premium payment. If you still don’t pay, they may deduct the amount from your policy’s cash value.
Is the death benefit tax-free?
Yes! The death benefit paid out as part of the insurance policy is 100% tax-free.
Policy Features: Cash Value
What does it mean for a Whole Life Insurance policy to have a cash value?
Part of the premium you pay in a Whole Life Insurance policy goes into a cash value account, which you can use as equity for loans or withdrawals. So your investment becomes not just a source of protection, but a financial resource as well.
What happens to the cash value if I decide to surrender or cancel my Whole Life Insurance policy?
If you decide to surrender or cancel your Whole Life Insurance policy, you’ll receive all the money that has accumulated in the cash value component of your policy.
Is there a risk to the cash value in my Whole Life Insurance policy?
Whole Life Insurance is a low-risk investment. The cash value in your policy is only at risk if the insurer goes bankrupt, which is extremely unlikely as Canada’s financial industry is heavily regulated. Even if they did go bankrupt, the government would oversee a smooth transfer of assets to another financial institution.
What's the best strategy for maximizing the cash value in a Whole Life Insurance policy?
Take advantage of Whole Life Insurance’s flexibility by minimizing coverage and maximizing investment payments. This directs more funds into your investment, which leads to higher cash value accumulation over time.
Loans and LOCs
How can I access the cash value of my policy?
Our Whole Life Insurance policies come with pre-approved lending facilities, meaning you can “borrow against” the cash value by using the policy as collateral for a loan or line of credit (LOC). This allows you to access funds when needed. Upon your passing, your death benefit can be used to repay the loan.
Here’s an example: let’s say you contribute $1500/month for 48 months. Let’s say this builds your cash value to $79,123 after interest and dividends. So, if you need $45,000 for a condo down payment, you can borrow up to $79,123 from the bank and be left with $34,123 after paying the down payment. Meanwhile, the entire $79,123 still grows within the policy, accruing interest and dividends. And you never need to repay the $45,000, because it’ll be taken out of your death benefit.
How soon can I borrow against a Whole Life Insurance policy?
Depending on the insurance carrier, you can usually borrow against your Whole Life Insurance policy within five business days after it’s set up.
What can I use a loan against the cash value for?
You can use the loan for anything you want! You can go on your dream vacation, renovate your home, or splurge on your passion project. However, while the possibilities are endless, we recommend investing the loan elsewhere. Since the cost of the loan is 100% tax deductible, you make money on the investment, and you make money inside the insurance policy, you effectively make $1 work twice as hard for you.
When do I repay the loan to the Whole Life Insurance company?
You’re not required to repay the loan to the insurance company. When you take a loan against your policy, the insurance company essentially uses your policy as collateral and the loan amount is subtracted from the death benefit when you pass away.
What happens to the value of the death benefit if I take money out of the cash value?
Taking a loan against your cash value reduces the death benefit by the amount of the outstanding loan.
Adjustments & Customizations
Can I customize my Whole Life Insurance policy with additional coverage?
Yes. You can customize your Whole Life Insurance policy with “riders” — these optional add-ons (like accelerated death benefits and premium waivers) can enhance your coverage to better suit your needs.
Can you adjust Whole Life Insurance policies when your life circumstances change?
Yes. Whole Life Insurance plans are incredibly flexible and can adapt to life changes like getting married, having children, or switching careers. You can always customize your policy by adding coverage, adjusting premiums, or modifying the death benefit to align with your preferences and financial status.
Can I convert an existing term life insurance policy into a Whole Life Insurance policy?
Yes. You can convert an existing term life insurance policy into a Whole Life Insurance policy (but only if the term policy was issued by a life insurance company that also offers Whole Life Insurance).
Can Whole Life Insurance policies be transferred or gifted to somebody else?
Yes. Whole Life Insurance policies can be transferred or gifted. However, you might face certain tax implications, so it’s best to consult with a licensed professional.
What happens if I change my country of residence or engage in high-risk activities?
Nothing! If you’ve disclosed all relevant information during your application, your policy coverage stays intact regardless of your location or approved high-risk activities.
Why Work with Lifestyle Legacy?
With Jamal’s financial acumen and Dean’s marketing and educational expertise, Lifestyle Legacy was born. This partnership is more than a financial advisory firm — it’s a mission to empower Canadian families with the knowledge and tools to secure their financial future.
Jamal and Dean are committed to bringing their unique blend of skills and experiences to help you create your own legacy.