top of page

Immediate Financing Arrangements (IFA) 

Image by Carlos Muza

An Immediate Financing Arrangement is a financial planning strategy designed to provide life insurance protection and easy access to funds for alternative investment purposes, without impairing corporate cash flow.

Significant Benefits

  • Tax deductibility

  • Tax-free growth

  • Access to Capital

  • Money working twice as hard

  • Tax-exempt life insurance policy

  • Potential for creditor protection

Who is it for?

Smiling Modern Business Woman

An IFA is suitable for owners and/or active investors of private corporations that have steady cash flows. This financial strategy is made for affluent individuals with a high net worth that have needs extending beyond just a core investment solution. 

 

If you fit into the suitable criteria for an IFA and identify yourself as having a need for life insurance and long-term strategies, then an IFA financial strategy will provide you with substantial benefits.

How Does it Work?

Step 1: Purchase a permanent life insurance policy

​

​

​

​

Step 2: Use the policy as collateral for a line of credit with a financial institution

​

​

​

​

Step 3: You pay recurring insurance premium for a fixed time period (for e.g. 8,10,15,20 years)

​

​

​

​

Step 4: Borrow back up to 100% of the csv or borrow back the entire premium by providing additional collateral security

​

​

​

​

Step 5: Use the line of credit for investment and other business purposes

​

​

​

​

Step 6: You can repay the loan as your income or cashflow increases. when the life insured passes away, remaining proceeds get paid to the beneficiaries

At DK Financial Canada, we have extensive knowledge of the Canadian Insurance landscape which allows us to provide concise, targeted advice to every client.

 

Our reputation is founded on our knowledgeable and dedicated team of associates who consistently deliver exceptional services and advice. 

bottom of page