Let’s be honest: most people don’t like life insurance. The very word makes people cringe. It feels like an expense, a product being “sold,” or something they’ll pay into but never see the benefit of themselves. Over the years, the industry hasn’t always helped its own reputation either.

But here’s the truth: when used correctly, permanent life insurance is one of the most effective estate, tax, and wealth creation tools available. The value isn’t in the policy itself—it’s in what it does. It protects wealth, provides liquidity, and fulfills family goals in ways that few other strategies can.

If we stop focusing on what life insurance is and start focusing on what it does, the stigma begins to disappear.

Why purpose comes before product

In estate planning, people often jump straight into strategies—setting up trusts, writing wills, or creating corporate structures—without first asking a crucial question: What do I want my wealth to accomplish?

Life insurance is no different. When viewed as a product, it can feel like an unnecessary cost. An expensive one. But when connected to a clear purpose, the conversation changes entirely.

• Do you want to ensure your spouse can stay in the family home?
• Do you want your children to inherit without facing unexpected tax burdens?
• Do you want to provide liquidity so assets don’t have to be sold at the wrong time?

Each of these goals is about outcomes. Permanent insurance becomes a tool to achieve them.

Liquidity: The hidden power of life insurance

One of the greatest challenges in estate planning is liquidity—having cash available when it’s needed most. When someone passes away, estates often face immediate costs: taxes, legal fees, probate, or simply the need for surviving family members to access funds quickly.

Without planning, these costs can force the sale of investments, properties, or even family businesses at the wrong time. Permanent insurance solves this problem. It delivers liquidity directly to beneficiaries, bypassing delays and ensuring loved ones aren’t left scrambling.

I’ve seen the impact firsthand. Families dealing with grief were also given clarity and relief because funds were available riht away—no confusion, no forced sales, no delays.

Wealth preservation and tax efficiency

High-net-worth individuals, professionals, and business owners often underestimate how much tax erosion can affect their estate. Corporate investments, real estate holdings, or even RRSPs can create large tax liabilities upon death.

Permanent insurance can be one of the most tax-efficient ways to cover those liabilities. Instead of heirs facing surprise tax bills—or having to liquidate assets at an inopportune time—insurance provides funds exactly when needed.

Even more, certain permanent policies allow wealth to grow tax-advantaged within the plan itself. This creates a dual benefit: protection for the estate and an additional, efficient investment vehicle during your lifetime.

Beyond protection: Creating a legacy

Life insurance is also about impact. Many families want to pass on more than wealth; they want to pass on stability, opportunity, and sometimes philanthropy.

For example:

• A family business owner may use life insurance to equalize inheritances when one child is involved in the business and others are not.
• A couple may use life insurance to create a meaningful charitable gift, leaving a legacy aligned with their values.

These outcomes are rarely achieved by accident. They come from aligning purpose with planning.

Term vs. permanent: Understanding the difference

It’s worth clarifying the distinction between term and permanent insurance.

• Term Insurance: Provides coverage for a set period (e.g., 10 or 20 years). It’s typically inexpensive and used to cover temporary needs like mortgages, childcare, or other family obligations. Term is 100% a cost—it protects against risks during a specific stage of life, but it doesn’t build wealth.
• Permanent Insurance: Provides lifelong coverage and can include a wealth-building component. It ensures liquidity is available no matter when death occurs. Permanent insurance isn’t just protection; it’s a planning tool that integrates with tax strategies, wealth transfer, and legacy goals.

Both have their place. But in estate planning, permanent insurance is where the true power lies.

Common misconceptions

Despite its benefits, many professionals dismiss life insurance out of hand. I often hear lawyers and other high-earning professionals say, “I don’t like life insurance.” My response is usually: You’re too smart to say that.

It’s like saying, “Minivans are pointless.” For a 16-year-old, maybe that’s true. But for a family with three kids, a minivan serves a very clear purpose. The same applies to life insurance. It may not be for everyone, but in the right situation, it can be the perfect fit.

The mistake is viewing it as a product to buy or avoid, instead of a solution to a specific problem.

The role of advice

Insurance only creates value when it fits into the bigger picture. Too often, I see families purchase policies without understanding why. Years later, they hold a product but not a solution.

That’s why I never “sell” insurance. I provide it where there’s a fit—where it clearly addresses a need, solves a tax problem, or fulfills a family’s goals. The product itself is secondary to the purpose.

One of the most powerful tools in estate planning

Life insurance will always carry a stigma for some. And truthfully, not everyone needs it. But for many high-net-worth individuals, professionals, and families, permanent insurance is one of the most powerful tools in the estate planning toolkit.

• It protects families from unnecessary hardship.
• It preserves wealth across generations.
• It provides clarity in moments of grief.
• And it turns a plan into a legacy.

When aligned with purpose, insurance stops being a product and becomes a solution. Remember, it’s not about what it is, but what it does that matters most.

Based in Halifax, Sylvain Morin helps high-net-worth families and professionals create estate and wealth strategies that bring clarity, confidence, and peace of mind.

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_{This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Sylvain Morin is solely responsible for its content. Seek advice on your specific circumstances from an IG Advisor. Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations. Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Canada Life Assurance Company.}