
Corporation Owned Life Insurance
Corporation Owned Life Insurance
Corporation owned life insurance is very effective and as a business owner you can incorporate it in your retirement plan. As you already know that corporation is taxed at a lower tax rate as compared to personal that is why we can say that corporate dollar is cheaper than the personal dollar. It makes a lot of sense to buy a life insurance and let the corporation be the owner of the policy.
Who should consider this strategy?
Business owners who have stable corporation should consider this strategy.
What happens in case there is death claim?
In case of death of the insured the death benefits is paid out to the beneficiary. In this case it is corporation, the money goes into a capital dividend account (it is a notional account) where it is not taxed. From capital dividend account it flows to the share holder of the company.
What are other advantages of a corporation owned life insurance policy?
Corporation owned life insurance policies can be over funded and can accumulate tax free growth as cash value inside the policy. As life insurance policies can be used to get collateral loan you can take collateral loan against this policy and use that loan to fund your retirement income. Once there is a death claim on the policy the death benefit is paid out after deducting the loan amount to the corporation.

WHAT CLIENTS SAY
REVIEWS & TESTIMONIALS

My insurance needs are very unique. I was also on a very limited budget. I had shopped around a little but all I was getting were raw quotes with no great details. I was later referred to Peel Financial Services and I got my perfect insurance.

There were so many options to choose from. Even though I am very healthy I just wanted to make sure I was starting at the right time. I'm happy with the insurance package I finally chose out of several great options presented to me.

I felt I had to reach my 40's to start considering life insurance. After doing a little research I realized the benefits of being insured even at a very healthy age. I love the rates I got. Thanks!