LIFE INSURANCE PLANNING FOR BUSINESS OWNERS
Corporate Life Insurance Made Simple
Discover how corporate-owned life insurance can protect your business, build long-term value and support your estate and succession plans.
What Is Corporate Life Insurance?
Corporate life insurance is a life insurance policy owned and paid for by a corporation, typically covering a business owner, shareholder or key person.
Protect your business, shareholders and key people.
Build long-term value and support estate, succession and tax planning.
How Corporate Life Insurance Can Help
Protect your business against the loss of an owner or key person.
Fund shareholder and buy-sell obligations.
Build tax-advantaged value inside your corporation.
Support estate, succession and retirement planning.
Corporate Life Insurance Strategies
Choose the strategy that fits your business, planning goals and long-term needs.
Business Protection
Protect owners, key people and shareholders while helping fund buy-sell or other business obligations.
Corporate Wealth Building
Use permanent life insurance to build long-term cash value inside the corporation while maintaining life insurance protection.
Estate & Succession Planning
Support estate equalization, succession planning and the tax-efficient transfer of corporate wealth to beneficiaries.
How Corporate Life Insurance Planning Works
We start with your business, goals and existing corporate structure before recommending any insurance strategy.
Identify your business protection, estate, succession and long-term planning needs.
Compare appropriate term and permanent insurance strategies for your corporation.
Who Should Consider Corporate Life Insurance?
Corporate life insurance may be worth considering for Canadian business owners who want to protect their company, build long-term value or support estate and succession planning.
Business owners who want to protect their company, partners or key people.
Corporations with excess cash available for long-term planning.
Owners looking to build tax-advantaged value inside their corporation.
Business owners focused on estate, succession or retirement planning.
FAQs About Corporate Life Insurance
Common questions Canadian business owners ask about corporate-owned life insurance.
What is corporate-owned life insurance?
Corporate-owned life insurance is a policy owned and paid for by a corporation, typically insuring a business owner, shareholder or key person.
Can my corporation pay the life insurance premiums?
Yes. A corporation can own the policy and pay the premiums, although premiums are generally not deductible as a business expense.
What happens to the death benefit when the insured dies?
The death benefit is generally paid tax-free to the corporation. A portion may create a credit to the corporation’s Capital Dividend Account, which can allow funds to be distributed tax-free to shareholders.
Can corporate life insurance build cash value?
Yes. Permanent policies such as whole life can build cash value inside the policy, which may support long-term corporate, estate or retirement planning.
Is corporate life insurance right for every business owner?
No. It depends on your corporation, cash flow, insurance needs and long-term objectives. The strategy should be evaluated before choosing a policy.
Protect Your Business. Plan for What’s Next.
