Insured Retirement Plan (IRP)

The Insured Retirement Plan is a financial strategy that provides clients with permanent life insurance coverage and the opportunity to supplement their retirement income. This strategy is ideal for clients who have maxed out their RRSP or pension plan contribution limits.

  1. Permanent life insurance coverage need

    Your client purchases a tax-exempt permanent life insurance policy for their coverage need.

  2. Cash value growth

    Life insurance coverage allows the client to accumulate cash value that grows tax-deferred, as long as it is not withdrawn from the policy.

  3. Use of the policy as collateral

    The client can later use the policy’s cash value as collateral for a loan.

  4. Supplemental income

    The borrowed funds are non-taxable, and the client can use them to supplement their retirement

  5. Wealth transfer

    Upon the client’s death, the proceeds of the life insurance policy are used to repay the loan. The balance is paid tax-free to the client’s beneficiaries.


  • The client can receive supplemental retirement income along with the peace of mind offered by life insurance coverage.
  • The policy’s cash value grows deferred.
  • The life insurance policy counts as an asset for your client. This means they can access the cash value of their coverage without giving up ownership when they use the policy as collateral for a loan from a financial institution.
  • Upon the client’s death, the proceeds of the life insurance policy are paid tax-free.

Eligible products

Whole life insurance:

  • Whole Life Guaranteed 10 Pay
  • Whole Life Guaranteed 15 Pay
  • Whole Life Guaranteed 20 Pay
  • Whole Life Guaranteed to 65
  • Whole Life Guaranteed to 100

Participating whole life insurance:

  • 5 Pay PAR
  • Accelerated Growth 10 Pay
  • Accelerated Growth 20 Pay
  • Accelerated Growth to 100
  • Estate Enhancer 10 Pay
  • Estate Enhancer 20 Pay
  • Estate Enhancer to 100

Dividend options

  • Paid-up additions (PUAs) with or without Premium Offset
  • Enhanced insurance (EI) with or without Premium Offset

Universal life insurance:

  • Term 10
  • Term 20
  • Term to 100

The accumulated fund of the universal life policy must be greater than $0.

Types of coverage

  • Individual
  • Joint first-to-die
  • Joint last-to-die
  • Joint last-to-die, paid-up first death