Business-Owned Permanent Life Insurance

Term life insurance business owner

What is business-owned permanent life insurance?

It’s insurance that gives you permanent business protection and converts your retained earnings into tax-free growth.

How does it work?

  • Your company pays the premiums.
  • 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 company.
  • Provides a stable investment that grows tax-free inside of your corporation which you can access at any time.
  • You can pick a specific amount of insurance that covers your needs.
  • Your life 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.
Term life insurance business owner

What types of business-owned permanent life insurance are there?

Business-Owned Participating Whole Life Insurance

  • Participating life insurance 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 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