Greetings,

I am 65 years old , soon to be 66, and have term life insurance ($150K for me, $15K for my wife) that I bought 10 years ago (term 95). My wife is 64 years old. My premium has now quadrupled and I have decided to not continue with the insurance since my kids are adults now and we live mortgage free with no debt. Have about $1 million in RRSPs and $200K in non-registered accounts (TFSA,etc...) between the two of us.

I have delayed taking my OAS and will probably do the same for my wife. I collect QPP ($11K), still work part-time but will probably retire this year. My wife also works part-time with minimal income ($15-$20K/year) but not sure for how long. No QPP taken yet but will be small.

My plan is to supplement our income using our RRSPs drawing down on them till I need to convert to a RRIF.

I was thinking that life insurance would be a good mechanism on paying down any taxes on my estate upon our deaths leaving more for our 2 kids.

With that in mind, I contacted my financial advisor who suggested a product called "Manulife Par".

For $150,000 life insurance, joint last-to-die, it would cost approximately $13K per year for 10 years and then be completely paid up.

According to the table provided, after 20 years there would be a cash value of $229K plus a total death benefit of $303K.

My advisor says I can take 90% of $229K at that time tax-free and upon our death would pay off any taxes resulting from the liquidation of our registered accounts

I'm not sure if this makes sense financially.

Your opinion please?

Thank you