What are the tax benefits of certain insurance policies?

Certain insurance policies offered by Manulife Financial can provide various tax benefits, which are important for individuals considering these products as part of their financial planning. One key benefit pertains to life insurance policies. The death benefit paid to beneficiaries is typically received tax-free, meaning that the full value of the policy can be passed on to loved ones without being subjected to taxes. This can be a crucial advantage for those who want to ensure their family is financially secure after their passing. Additionally, permanent life insurance policies can accumulate cash value over time. The growth of this cash value is generally tax-deferred, allowing clients to access these funds during their lifetime without incurring immediate tax liabilities. This feature provides flexibility, as it can be utilized for various needs, such as emergencies, education expenses, or retirement funding. Another area of interest is critical illness insurance. While benefits are generally tax-free, clients should be aware that the premiums paid for this type of insurance may not qualify for tax deductions as business expenses. Therefore, it is essential for individuals to understand the specific terms and conditions associated with their insurance policies. For detailed information on tax implications related to specific policies, it is advisable to consult the relevant sections on the Manulife website or reach out to a qualified tax professional or financial advisor.