Business-Owned Life Insurance

Business owner life insurance

What is business-owned life insurance?

It’s a life insurance policy on yourself, paid for by your company.

These policies protect the value of your company and offer tax advantages.

How life insurance benefits your business

  • Protects the value of your company if you prematurely passed away.
  • The life insurance is paid tax-free to your company.
  • Your company receives a credit to its capital dividend account, allowing for tax-free dividends to be paid out of your corporation.
  • Provides a stable investment that grows tax-free inside of your corporation.
  • It converts your retained earnings into tax-free growth.
  • Guarantees you have access to capital for your business in case of an emergency or any other need.
  • Funds a buy-sell agreement between business partners.
  • Key person protection for you and your key employees.
Business owner life insurance

How does it work?

  • Your company pays for the premiums.
  • The life insurance is paid tax-free to your corporation.
  • You can choose the amount of coverage you want.
  • You can choose how long you want coverage for.
  • You can pay monthly, annually or with an IFA.
  • Your rates will not increase for the term you choose.
  • Depending on your age and health, you may be able to get instant approval with no medicals needed.

How much life insurance do you need?

Every business is different, but the amount of insurance you need will be based on:

  • The value of your company
  • Retained earnings
  • How much of a capital dividend account credit you want for tax-free dividends
  • How much cash surrender value you want with tax-free growth
  • Your income
  • Net worth
  • Family needs
  • Debts 

How much does life insurance cost?

Several factors determine the price of life insurance, including: 

  • Amount of insurance needed
  • Age
  • Health
  • Gender
  • Occupation

What types of business-owned life insurance are available?

Business-Owned Term Life Insurance

  • Low cost coverage with terms ranging from 5 – 50 years
  • Used to protect the value of your business in case you prematurely die
  • Pay off debts such as your mortgage and business loans
  • Payments do not increase during the term
  • Can be converted to permanent life insurance
  • You can cancel without penalties

Business-Owned Participating Whole Life Insurance

  • Participating life insurance lasts forever and does not expire
  • Guaranteed cash values that grow tax-free
  • Ensure your family receives the money they need
  • Ensure your estate has liquidity for taxes and immediate needs
  • Convert retained earnings into non-taxable growth
  • Flexible payment options

Business-Owned Universal Life Insurance

  • Universal life insurance lasts forever and does not expire
  • Guaranteed cash values on some policies
  • Flexible and diverse range of investment options
  • Ensure your estate has liquidity for taxes and immediate needs
  • Flexible payment options

Have you thought about protecting your health and income?

There are a variety ways to protect your monthly income and your health in case of an emergency.

Critical Illness

Protecting yourself against dozens of major health issues.

Disability insurance

Ensuring you receive a monthly income in case of an emergency.

Group benefits

Customized health plans for you and your employees.