Immediate Financing Arrangement (IFA)

For financially successful Canadians, wealth management often presents a fundamental conflict. Investment portfolios are designed for Growth, but gains are subject to significant taxation. Separately, permanent life insurance provides essential Protection, but the premiums look like a cost—capital locked away that cannot be used for other opportunities.

The ideal strategy would unify these two goals into a single financial  solution that provides immediate Protection, simultaneously fuels Growth and also creates additional tax advantages.

This is the function of an Immediate Financing Arrangement (IFA). An IFA is a sophisticated strategy that uses the guaranteed values of a permanent life insurance policy as collateral for investment loans. This architecture unifies the financial plan: it secures the future with the Protection of life insurance, unlocks capital to pursue Growth in an investment portfolio, and can create powerful annual tax deductions—from both the loan interest and a portion of the insurance premium—which maximizes capital efficiency and long-term Impact.

This page serves as a comprehensive curriculum for understanding the IFA, from foundational concepts to advanced tax applications. To set clear expectations, this is an advanced strategy. Lenders typically require a minimum loan of $500,000 within 10 years, with annual loan advances of at least $50,000. When you are ready, the next step is to see how this strategy can be personalized for your—or your client’s—specific situation.

Independent Advisors: review an anonymized case study.