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Universal Life

L. D. C. P.
LEVERAGED DEFERRED COMPENSATION PLAN

The structure of an LDCP depends upon whether you wish to INCREASE YOUR TAX-FREE INCOME at the same time, reducing your ESTATE INSURANCE COSTS.

In either case, two financial institutions come together, offering a Life Insurance product and a loans institution offering a series of loans.
 
Uses of L.D.C.P.:
1
Using an L.D.C.P. for income to augment your retirement cash flow using non-taxable loans.
2
If you use the NONTAXABLE LOANS for INVESTMENT PURPOSES, you can deduct the Loan Interest from your taxes.
3
Use the L.D.C.P. to pay taxes, since proceeds offer TAX-FREE death benefit to your beneficiaries.
A RETIREMENT SUPPLEMENTAL TAX FREE INCOME KNOWN AS "LEVERAGED DEFERRED COMPENSATION PLAN

L.D.C.P. allows you to grow a tax sheltered accumulation fund plus providing a tax-free death benefit to your beneficiaries or estate (sect. 148 income tax act.)

The income flow will supplement any other regulated income from Pension and R.R.S.P.'s or R.R.I.F.'s.

LEVERAGING, involves credit financing in the form of a tax-free loan from a credit union, trust or bank using the cash value as collateral for the loan. By borrowing each year as your income dictates you will avoid triggering tax which would otherwise be payable.

 

Interest and principle on the outstanding loans will be paid from the tax-free proceeds from the insurance contract at death. The amount of loans and interest will never be allowed to exceed 95% of the contract's cash value, thus ensuring that you will not be put in the predicament of tax consequences by default.

This program should be carefully structured with a company actuary and entered into with agreements at the time of entry.
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