About Jiayue Tax & Financial Planning

Jiayue Tax Planning is jointly provided by Michael Gao CPA Inc. and its affiliated firm,
Citistar Wealth Management. Together, we combine our professional expertise to serve every client.
With our experience and knowledge, we help empower your financial success.

The two biggest barriers to wealth accumulation are investment risk and taxation.
According to renowned financial author and wealth advisor Rebecca Walser,
one of the most successful professionals in the field of high-net-worth planning,
“The wealthy use many strategies to accumulate wealth — but the most common secret
that ordinary people don’t know is investing in permanent life insurance.”

In her bestselling book
“Wealth Unbroken: Growing Wealth Without Market Crashes, Taxes, or Even Death”,
Walser explains how investing in whole life insurance policies allows individuals to
maximize savings in tax-advantaged accounts.

Key Features of Participating (Whole Life) Insurance in Canada

• 1. It is life insurance.
  Upon the death of the insured, the designated family member, business, or charity receives the death benefit.
• 2. It builds tax-free cash value.
  The policy accumulates guaranteed cash value over time that can be accessed during your lifetime.
  Even during market downturns, your policy’s cash value continues to grow, providing peace of mind.
• 3. It offers tax advantages.
  The policy’s investment growth within the tax-exempt limits set by the government is not taxable.
  Upon death, the beneficiary receives the proceeds completely tax-free.
• 4. It pays dividends.
  You can choose from multiple dividend options, such as reinvesting them to increase coverage
  or withdrawing dividends annually for supplemental income.

Walser emphasizes that investing in permanent life insurance is a powerful wealth strategy:
“The wealthy have created vast amounts of wealth through life insurance,” she explains.

Why Wealthy Individuals Choose Life Insurance

Beyond continuous wealth creation and multi-generational preservation,
several additional factors motivate high-net-worth individuals to purchase life insurance:

1. Privacy and Asset Protection

Life insurance is a legally protected financial instrument that safeguards
both the policy’s funds and the privacy of beneficiaries.
It can also protect assets from unjust or frivolous lawsuits,
offering confidentiality and peace of mind for policyholders.

2. Creditor Protection

Under provincial law in Canada, if a policy has a designated beneficiary,
creditors generally cannot seize the policy’s proceeds upon the death of the insured.
Moreover, if the beneficiary is irrevocable or a qualified family member,
the policy’s cash value itself is protected during the insured’s lifetime
from most creditor claims.

3. Estate Equalization

For affluent families or business owners seeking to distribute wealth fairly among heirs —
especially when some assets (like businesses or real estate) are illiquid —
life insurance provides an ideal method to ensure fair and balanced inheritance.

4. Business Protection

Successful business owners often use participating life insurance
to fund key-person insurance or to provide liquidity
for buy-sell agreements.
This ensures business continuity and financial security for surviving partners or family members.

In summary, participating whole life insurance
offers powerful protection for your family, your business, and your legacy.
It supports long-term financial goals, promotes tax-efficient growth,
and preserves wealth for future generations.

The professional advisors at Citistar Financial
are here to guide you in designing a personalized insurance strategy
that aligns with your current and future needs.