Frequently Asked Questions

These are the questions that come up most often. The answers are short, and each links to the page that treats the subject properly.

Is this a get-rich scheme?

No, and it is not presented as one. It is a slow structural approach that generally needs ten to twenty years or more before cash value exceeds cumulative premiums. Nothing about it is fast, and any presentation suggesting otherwise is not describing this strategy.

Am I really becoming a bank?

No. A participating whole life policy is an insurance contract regulated under provincial insurance legislation. It is not a bank, does not carry on banking, is not a deposit account, and is not insured by CDIC. Policyholder protection is provided within limits by Assuris. The phrase is a metaphor for taking on more of the financing function in your own life, and read literally it is simply wrong.

Are the returns guaranteed?

The contract's guaranteed cash values are guaranteed by the issuing insurer, dependent on its financial strength, and are not government-backed. Dividends are not guaranteed at all — they are declared annually at the discretion of the insurer's board based on the performance of the participating account, and scales can fall.

Is a policy loan tax-free?

Not automatically. Under section 148 of the Income Tax Act a policy loan is a disposition, and proceeds exceeding the policy's adjusted cost basis are a taxable gain. Adjusted cost basis declines over time, so a loan sheltered in year eight may not be in year twenty-five. Anyone describing policy loans as simply tax-free is describing the United States.

What happens if I stop paying premiums?

It depends on the policy and how far it has progressed. Some contracts can be sustained temporarily from accumulated value; others lapse. A policy that lapses with a loan outstanding can trigger a tax liability in a year when there is no cash available to pay it. This is one of the strategy's genuine risks, not a footnote.

Can I do this without an advisor?

You cannot buy the contract without a licensed representative, and design is where most outcomes are decided. The balance between base coverage and paid-up additions, the funding level relative to the exempt test, and the ownership structure all have long consequences that are expensive to correct later.

Does this work the same way in the United States?

No, and this is the reason the book exists. Canada has no estate tax but does have deemed disposition at death. The exempt test has no identical American counterpart. Policy loans interact with adjusted cost basis under section 148 rather than the U.S. provisions. Insurance is regulated provincially here. American material applied unchanged to a Canadian situation produces confident advice that is quietly wrong.

Does the author earn money if I buy a policy?

Yes. He is a licensed insurance professional and receives commissions from insurers when a client purchases a policy. That is disclosed openly on the disclosure page, and it is a reason to read the book sceptically and verify it with advisors of your own choosing.

Can I book a consultation through this website?

No. This site describes a book and its author, collects no personal information, and offers no booking. If you want advice, take your questions to a licensed Financial Security Advisor you choose yourself.

When is the book available?

Both English and French editions are in final production. The order page will carry the ordering link on release.