Prepare for retirement
Set up an Individual Pension Plan and protect your wealth
An RRSP is a great retirement-planning strategy for many people. However, for high income business owners or senior managers who need a more aggressive tax deferral strategy, an Individual Pension Plan (IPP) may be an even better option.
What's an IPP?
An IPP is a defined benefit pension plan designed for 1 person. Unlike an RRSP, where the amount of annual contributions is predetermined, in this case it's the benefit payable at retirement that's determined in advance.
Find out more about Group retirement savings solutions External link. Opens in a new window.
Protect your estate with tax-free investments
Universal life insurance is an attractive solution that combines both a life insurance and savings component. You take out life insurance for a set amount and accumulate cash without it being taxed. When you die, the life insurance benefit and accumulated savings are payable to your beneficiaries tax-free.
Insurance component
- Pays a tax-free lump-sum amount to your beneficiaries
- Increases the value of your estate on your death
The cost of your life insurance is paid automatically from the interest you earn on your investments. When you die, the lump-sum benefit is paid, tax-free, to your beneficiaries, allowing you to:
- Leave the full amount to your heirs
- Help your heirs pay the capital gains tax on inherited assets (land, cottage, secondary residence, rental property, works of art, stocks) and your RRSPs
- Ensure your loved ones' quality of life
Your financial security advisor1 works with the expert at your Desjardins Business centre to help you select the investment options that are right for your needs.
Savings component
- Offers various tax-free investment options, including 9 Desjardins Funds
- Respects your investor profile
Universal life insurance offers a variety of tax-free investment options (daily interest, fixed-rate, investments linked to an index or fund), so there's something for every investor profile. You can continue investing on a tax-free basis even if you've maxed out your RRSPs.
Withdraw your money any time you want
Ready to start those projects you've always been dreaming about? You can withdraw any or all of your accumulated savings at any time, with no surrender fees. And subject to certain conditions, the Health Withdrawal Option may allow you to withdraw your savings without even having to pay any income tax.
Use the Health Withdrawal Option
In the event of disability, critical illness, surgery or loss of independence, you can withdraw your savings without having to pay any income tax or surrender fees.
1. In Ontario, this refers to a life and health insurance representative employed by Desjardins Financial Security Life Assurance Company. In Quebec, this refers to a financial security advisor employed by Desjardins Financial Security, Financial Services Firm and assigned to a Desjardins caisse.