Immediate Financing Arrangement (IFA)
Investment Growth + Insurance Protection + Tax Deductions
The IFA Master Curriculum
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 can look like capital locked away from your business or investment opportunities.
An Immediate Financing Arrangement (IFA) unifies these goals into a single structure. By using the high cash surrender value of a participating whole life policy as collateral for a commercial credit facility, your capital stays active in your corporation or investment portfolio while building a tax-free Capital Dividend Account (CDA) credit for your estate.
To set clear expectations, lenders typically require a minimum cumulative loan facility of $500,000 within 10 years, with annual premiums starting at $50,000+. When you are ready to see how these mechanics behave with your specific numbers, start with our 7-Step Feasibility Process →
What is an IFA?
Key Questions & Misconceptions
Why Isn’t Everyone Using an IFA?
The IFA Core Advisory Team
Risk Management & Stress-Testing
Tax Mechanics, NCPI & Interest Deductibility
Insurers, Lenders & Credit Facilities
Comparing IFAs to Other Strategies
- IFA vs. 10-8: Lessons Learned and Changes Made
- IFA vs. IRP: An Accountant’s Guide to Strategic Selection
- IFA vs. HELOC: An Accountant’s Guide to Choosing the Right Leverage Tool
- IFA vs. Conventional Investment Loans: An Accountant’s Guide to Leverage
- IFA vs. Infinite Banking: A Made-in-Canada Clarification for Accountants
Advanced Applications: CDA, Estate & Philanthropy
See an IFA in Action With Your Specific Numbers
Theory is educational. Actuarial modeling is proof. Before you commit capital, test how an IFA compares against conventional investing and unleveraged insurance to age 100.
Explore the 7-Step Feasibility Process →