Business-Owned Participating Whole Life Insurance

Business owner permanent life insurance female

What is business-owned participating whole life insurance?

It’s lifelong business protection that provides a tax-free payout to your company when you pass away.

Participating whole life policies also come with a tax-free investment account, known as the cash value, which grows tax-free inside of your corporation.  

 

How does it work?

  • Your company pays for the premiums.
  • The life insurance is paid tax-free to your corporation.
  • Your company receives a credit to its capital dividend account, allowing for tax-free dividends to be paid out of your company.
  • Your cash value grows on a tax-free basis and you can access it at any time.
  • You can choose the amount of coverage you want.
  • Your insurance does not expire.
  • You can pay monthly, annually or with an IFA.
  • Depending on your age and health, you may be able to get instant approval without providing medicals.
Business owner permanent life insurance

How participating whole life insurance benefits your business:

  • Protects the value of your company if you passed away.
  • Credits your capital dividend account allowing you to remove assets tax-free from of your corporation to your estate and family.
  • Provides a stable investment, with guarantees, that grows tax-free inside of your corporation.
  • Offers guaranteed access to capital for your business in case of an emergency or any other need.
  • Converts your retained earnings into non-taxable growth.
  • Funds a buy-sell agreement between business partners.
  • Key person protection for you and your key employees.
  • Overall, it is the most cost effective way to cover your personal and company risks.

How much does life insurance cost?

Several factors determine the price of life insurance, including: 

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

How do I apply for participating whole life insurance?

Call us: 1-888-673-8872

At MD Insurance, we have aligned ourselves with Canada’s best insurance companies to offer you an extensive range of coverage at affordable rates.