My husband and I (both Canadian citizens) but live in the US (Permanent residents). In the US, we are looking at buying Universal Indexed Life Insurance but I'm concern about the tax problems we will face if we moved back to Canada in 5-10 years and continue to hold this asset into retirement in Canada.
The insurance company has mentioned all gains from this account are tax-free even if you live in Canada—i.e. the cash surrender value can be withdrawn in Canada without paying taxes.
Is this accurate?
US Universal Life Insurance while in Canada?
Moderator: Mark T Serbinski CA CPA
Re: US Universal Life Insurance while in Canada?
Anything benefit you would get from an insurance policy would be tax-free in both US and Canada.
I would get a second opinion about Universal Life as a financial decision, since it is generally considered (except by insurance salesman, of course) to be a poor insurance and a worse investment. Those beautiful buildings that Insurance companies have built over the last 150 yrs have been because of Universal Life premiums. Just saying.
I would get a second opinion about Universal Life as a financial decision, since it is generally considered (except by insurance salesman, of course) to be a poor insurance and a worse investment. Those beautiful buildings that Insurance companies have built over the last 150 yrs have been because of Universal Life premiums. Just saying.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: US Universal Life Insurance while in Canada?
I purchased a life insurance in Canada, then moved to USA. The tax reporting I found later is very complicated in USA... even thought I was told my agent that everything is tax-free. But after reading tons of form instructions, I decided to give the insurance policy up. - it is a waste of money. and I lost the already-paid premium.
Stay away from insurance, unless it it term-insurance.
Stay away from insurance, unless it it term-insurance.