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Lorie is a healthy 60 year-old who owns a cottage by the lake with an unrealized capital gain of $200,000. She assumes the cottage value
Lorie is a healthy 60 year-old who owns a cottage by the lake with an unrealized capital gain of $200,000. She assumes the cottage value will continue to rise. Lorie believes that on her death she will pay 25% of her taxable income to tax. On her death, Lorie would like her cottage to go to her niece. Which type of insurance would be most suitable to cover her final tax liablity on the cottage? Lorie is a healthy 60 year-old who owns a cottage by the lake with an unrealized capital gain of $200,000. She assumes the cottage value will continue to rise. Lorie believes that on her death she will pay 25% of her taxable income to tax. On her death, Lorie would like her cottage to go to her niece. Which type of insurance would be most suitable to cover her final tax liablity on the cottage? $250,000 of non-participating whole life insurance $25,000 of participating whole life with Paid up Additions dividend option $ 50,000 of whole life with dividends paid in cash $50,000 of 20-year term insurance
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