Services
CORPORATELY OWNED PERMANENT LIFE INSURANCE
Strategic Planning for Business Owners
Corporately owned permanent life insurance is often used by business owners and incorporated professionals to address long-term planning needs using excess corporate retained earnings.
When structured correctly, it can provide a tax-efficient way to reposition capital, fund future liabilities, and enhance estate outcomes.
Common Corporate Uses
Corporately owned permanent insurance is commonly used to:
- Fund future capital gains or estate tax liabilities
- Improve tax efficiency of retained earnings
- Support shareholder or succession planning
- Create estate liquidity for business owners
- Enhance value transferred to heirs through the CDA
Why Structure Matters
Ownership and beneficiary designations materially affect outcomes, including:
- Tax treatment of premiums and proceeds
- Access to the Capital Dividend Account (CDA)
- Flexibility during lifetime and at death
This is not a product decision. It is a planning decision.
Integration With Other Advisors
Corporate permanent insurance should align with:
- Corporate structure
- Shareholder agreements
- Tax planning strategies
- Exit or succession plans
I regularly coordinate with accountants and lawyers to ensure the insurance strategy supports the broader plan.
When This Strategy Is Considered
Corporately owned permanent insurance may be appropriate when:
- The corporation has excess retained earnings
- Funds are not required for short-term business needs
- Long-term planning and tax efficiency are priorities
Next Steps
If you own an incorporated business and are considering long-term planning strategies, I’m happy to review whether corporately owned permanent insurance makes sense in your situation.
We would love to discuss your lifestyle and insurance needs.
No high pressure sales tactics. We simply educate you on making the best decision for you. We proudly serve Ontario, Alberta, and British Columbia.
We have adopted a proven systematic approach to working with clients virtually, which allows us to get to know our clients and help them make an informed decision on what insurance solution is best for them.