High net-worth Christian families doing business and wealth successfully through the generations.
The Conversation Starts Here.

Contact us toll free at 1.888.629.0044

Holistic Approach to Managing Wealth



Integrated Planning and Changes In The 10/8 Insurance Program

The recent Canadian federal budget, presented to the Canadian House of Commons on March 21st of this year, announced certain changes to tied insurance structures commonly referred to as the “10/8” leveraged structure. This structure allowed the taxpayer to receive an 8% tax sheltered return in the policy and deduct the 10% cost of borrowing.

We have no 10/8 structures implemented with any of our clients as we were uncomfortable with the associated tax risks. However, we understand it is possible that some may have implemented this structure through other advisors. For your convenience, we provide the following summary of the effects of the new budget.

The proposed changes will deny the following benefits:

  1. The deductibility of interest paid or payable on the borrowing that relates to a period after December 31, 2013;
  2. The collateral insurance deduction that might otherwise be available for premiums paid or payable under the policy that relate to a period after December 31, 2013 and;
  3. Where the death occurs after December 31, 2013, the increase in the capital dividend account of a private corporation in respect of the death benefit proceeds associated with the borrowing.

The proposal does provide some relief by allowing the withdrawal of the funds from the policy be done without triggering tax consequences.

We apply a holistic approach to financial planning, integrating life insurance into the overall tax structure. We would be happy to review any 10/8 structures you may have and provide our input in terms of planning options and alternatives that could support your overall planning objectives.

Please feel free to contact us is you have any questions.

Family. Wealth. Harmony.®

Covenant Family Wealth Advisors' certified financial advisors and business succession planning experts help guide families through the technical and emotional aspects of managing wealth, estate planning and business succession. Our experienced financial management team uses a Christian perspective that is rarely found in traditional financial planning, and we work closely with you to develop a personal Holistic Stewardship Plan that encompasses financial planning, estate planning, family business transition and philanthropy.

Biblical Perspective

Connect with Us:


Dear Clients,

In recent days, it has become increasingly evident that we are experiencing an unprecedented event around the world. The speed at which our lives have been turned upside down is breathtaking. At Covenant, we are doing our best to continue serving our clients while taking precautions to stay safe and reduce the risk of further spread of the virus. We value each of you and count it a privilege to serve you. Amidst this most trying time, we are available to discuss any concerns you may have pertaining to your finances or business. Please do not hesitate to contact us. Although the challenges are significant, we are confident we will all get through this and that brighter days are ahead.

May we each be wise, discerning and quick to help those who need it.

The Covenant Team