For clients who are concerned that their beneficiaries may not be able to manage a large inheritance, Industrial Alliance Financial Group (iA) has created a new, more flexible way for them to leave money.
On August 29 iA launched Inheritance Your Way, an option that is now available for all in-force savings contracts and new issues, with the exception of registered education savings plans. Policyowners may now arrange to have funds transferred to their heirs as an annuity, a lump-sum, or a combination of the two. For example, a client could build a customised solution that involves an initial one-time payment as well as a life annuity.
Inheritances transferred gradually
The insurer says this new option is suitable for clients who have a considerable portfolio and to whom one of the following applies:
- They worry that their heirs will have difficulty managing a large inheritance
- They have an heir who will require regular income for special care throughout his or her life
- They wish to avoid costs related to the creation of a trust
- They want any inheritances transferred gradually
To offer this option, iA says that advisors should download and complete a form from its web site (F51-296A: Beneficiary Designation for Inheritance Your Way). The client can then change or cancel his or her selection, or change the beneficiary based on his or her needs.