Joint Last-to-Die life insurance and Estate Planning

Joint Last-to-Die life insurance and Estate Planning

A joint last to die life insurance could be one of the strongest tools to provide tax free money and hence could be part of Estate Planning. The tax free payout on the last spouse’s death could be to a named beneficiary or to the estate.

What a Joint last to die life insurance does is that it pays out a benefit to fund the various capital gains taxes that become payable upon the death of the second spouse. Usually, all capital gains taxes and RRSP related taxes and taxes from other assets are payable upon the death of the second spouse. Hence Joint Last to Die can be a very useful tool.

A Joint last to die funds:

capital gains tax,

an intergenerational rollover of wealth,

plans charitable gifts and legacy.

A joint last to die life insurance would payout upon the death of the last spouse’s death. It can come as a Term policy or as a permanent Policy like Whole Life, Universal Life.

We at are experts in explaining the the various types of life insurance that could protect the entire family. Please feel free to contact us at or at 1 416 509 2540. Please visit us for a no obligation quote or advice.


Term Life Insurance

is an extremely cost effective way to insurance yourself when your temporary ( or time bound) needs for insurance are high. During the years when we are raising our kids, have big loans to pay and also building our assets, term insurance could be a great fit.The cost of insurance ( or the premiums) are constant for the duration of the term. Policies are renewable and convertible.


Permanent Life Insurance

is essentially a coverage that is lifelong. It runs through our life assuring a payout upon death. The cost of insurance can be level or YRT and the payout is tax free. Its main purpose is :


Universal Life Insurance one of the best things that could happen in the world of Life Insurance. UL policy is when a permanent life insurance is merged with the possibility to have several investment options.

Your policy provides a lifelong coverage and at the same time you can save money within the policy to create tax-sheltered savings…

UL Policy ….an excellent way to build wealth that could actually become tax-free for your family. There are several options that could be customised for an individual.


Combining your term and permanent insurance: both are important.

People often wonder what is better, Term or Permanent Insurance. Both have their advantages and disadvantages. However, both have a significant role in our world of protecting our family, assets, incomes, family etc etc. Therefore, it could be a good idea to take a combination of Term and Permanent Insurance. It can be bought together in one policy , thus there could be some savings on policy fees and in premiums. It is a Think Smart approach to buying Life Insurance. ( Read More and watch a video)


Life Insurance protects your estate from a tax liability

Life Insurance is a tax free benefit to the beneficiary and hence can provide liquidity to your estate and the tax free benefit could offset tax liabilities in the future.


Life Insurance is a wealth maximising tool

A life insurance policy serves the purpose of replacing the income in case of an untimely death of the family breadwinner. In case of a family with two or three small kids, a mortgage and some additional debt, a life insurance policy on the parents would be extremely important. If one of the parents were to die, the surviving spouse would find it difficult to take care of the responsibilities and maintain a standard of living.


Real Benefit of Life Insurance

When looking at life insurance, we must consider this as an intangible asset. We might not feel as excited buying it as we would in case of buying a house, or a car or a toy but it is way beyond that.


Prepared by:  Aman Kapur





  1. You make some good points on the benefits of last-to-die life insurance. It can be a great way for clients to both protect and maximize their estate. I also like the breakdown of the various forms of last-to-die coverage

  2. Informative article on life insurance for those seeking insurance protection. Various alternatives explained in an understandable fashion.
    The connection between final taxes and estate planning made very clear.

    • Thank you Bert. I am happy that you liked it. These types of policies form a very important tool for Estate Planning. Looking forward to talking to you in the near future.

  3. Good points on joint last to die. If one partner is not insurable this is the way to go.


Leave a Comment

Your email address will not be published. Required fields are marked *