Business-Owned Participating Whole Life Insurance
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.
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
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.