Did you know that nearly 50% of young Canadians who are generation Z (18-24) and millennials (25-40) received financial assistance from their family to buy their first property?
Moreover, considering the surge in the real estate market, 85% of parents who own their home worry about whether or not their young children will be able to buy their own home.
To help the next generation realize their projects when they become adults, propose to your clients who have a solid financial foundation the strategy of using iA PAR to transfer money between generations. In addition to transferring some of their wealth in a fiscally advantageous way, they will help offer several options to their descendants once they reach the age of majority.
With this strategy, your clients take out an iA PAR policy for a child or grandchild when they’re young, then quickly pay off the policy. They then transfer ownership of the paid-up policy to the insured once they reach the age of majority. The insured then has access to the surrender value accumulated in the policy and the annual dividends, thus allowing the insured to make a down payment for the purchase of a first home, for example, to pay for school, or to, later on, complement his or her retirement income.
This legacy, in addition to protecting family wealth, makes it possible to guarantee the insurability of a child or grandchild and provide disability coverage throughout his or her life.
Learn more about this strategy and the terms and conditions here and consult the documents related to iA PAR in the Advisor Centre.
iA PAR, ensuring the growth of your estate!
*Sources: Ipsos
