You maxed out your RRSPs and TFSAs – now what?

People who have exhausted their RRSP and TFSA contribution room and wish to safeguard and enhance their estate holdings even further, using tax-efficient strategies, may opt to over-fund a life insurance policy.

What is overfunding?

According to Bridge to Prosperity, a unique business and wealth management firm servicing Vancouver, The Lower Mainland and Vancouver Island, when you over-fund a life insurance policy you deposit above and beyond what your regular premium is supposed to be, up to a predetermined ceiling amount.

These extra amounts will accumulate within the policy, tax-deferred, and create a cash surrender value, which will immediately enhance your estate’s worth.

In addition, you can use the accumulated funds for any purpose, such as going on vacation, buying a car or even supplementing your current or future income, without potentially having to pay these funds back.

This strategy should be considered when developing a comprehensive financial plan for you and your loved ones as it provides for:

  • Increased - tax-free - inheritance for beneficiaries when personally owned
  • The ability to transfer accumulated corporate retained earnings to beneficiaries with minimal tax consequences when corporately owned
  • Possible non-taxable withdrawals in the event of critical illness, disability or loss of independence
  • The ability to choose investment structure and allocation
  • Coverage flexibility to address changing needs

To learn more about this advanced strategy, visit Bridge to Prosperity online at or call 778-776-4334. Bridge to Prosperity is a unique Business and Wealth Management firm. Their goal is to help business owners, professionals and individuals enhance and protect their assets, using advanced tax efficient strategies.

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