Empire Life Accepting Applications for Tax-Free Savings Accounts

• Press Release
• Source: The Empire Life Insurance Company
• On 11:05 am EST, Wednesday December 3, 2008

KINGSTON, ONTARIO--(MARKET WIRE)--Dec 3, 2008 -- The Empire Life Insurance Company (Empire Life) is accepting applications for Tax-Free Savings Accounts (TFSAs) now so clients can start making contributions on January 1, 2009 when the new savings vehicle is officially open to Canadians.

"We think we will see a significant amount of interest in TFSAs in the next two to three months," says Jim Gibson, Director, Retail Wealth Marketing. "The TFSA is the ultimate piggy bank, with tax-free earnings, tax-free withdrawals and total flexibility in how clients use the money," says Gibson who recommends Canadians should set up a TFSA as soon as possible and keep it as long as possible to benefit from tax-free compound growth.

While Gibson predicts TFSAs will be popular with pre-retirees who are looking to supplement their Registered Retirement Savings Plans (RRSPs), he is hoping advisors and clients will explore the many uses of TFSAs.

For instance, the TFSA is a great way for parents to continue to save for their child's education beyond age 17, after Registered Education Savings Plans (RESP) grants have been maximized. Young Canadians over the age of 18 who are in a low income tax bracket can use a TFSA to help them save for short-term needs like education and trips. As they advance in their careers and move into higher tax brackets, they can withdraw the money from the TFSA and invest it into their RRSP, using any tax refund to reinvest back into the TFSA.

"The biggest challenge is education," says Gibson, who cites two recent surveys(1) indicating that 40-45% of Canadians still don't know much about Tax-Free Savings Accounts. "Our goal is to put as much information in the hands of our advisors and clients now so that our clients understand the many benefits of these accounts and will invest early."

About Empire Life

A subsidiary of E-L Financial Corporation Limited, and in business since 1923, The Empire Life Insurance Company (Empire Life) provides financial security and wealth management solutions for the changing needs of Canadians. The Company's financial strength is rated A (Excellent) by A.M. Best Company, Inc., as at June 2, 2008 and reflects excellent capitalization, continued strong growth in segregated fund assets, consistent profitability and expanding distribution. The Company's success comes from a commitment to being approachable and responsive to the needs of its clients and business partners, consistently solid investment performance and faith in its employees as future leaders. Empire Life is celebrating its 85th anniversary in 2008.

(1) Harris Decima Research Survey, August 2008 and TD Canada Trust/Angus Reid Strategies Survey, October 2008

     Contacts:
     Empire Life
     Laurie Swinton
     Manager, Corporate Communications
     (613) 548-1890, ext. 3374
     Email: laurie.swinton@empire.ca