Business-Owned Term Life Insurance

Term life insurance female business owner

What is business-owned term life insurance?

It’s life insurance on you, paid for by your company.

Business-owned term life insurance can help your company survive a crisis, maintain its value and the payout is tax-free to your company.

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.
  • You can pick the exact amount of insurance you need.
  • You can choose how many years you want coverage for.
  • You can pay monthly or annually and your payments will not increase during the term.
  • Depending on your age and health, you may be able to get instant approval without providing medicals.
Term life insurance 2 business owners

How term life insurance benefits your business

  • Protects the value of your business if you suddenly passed away.
  • Ensures your business can remain in operation and afford its monthly obligations such as rent, payroll and cost of goods.
  • Allows you to remove assets tax-free outside of your corporation to your estate and family.
  • Succession planning and passing down your business to your children.
  • Funds a buy-sell agreement between business partners.
  • Key person protection for you and your key employees.
  • Pays off any company loans and debt.

How much does life insurance cost?

Several factors determine the price of term life insurance, including: 

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

What are your options when your term ends?

  • Renew for another term
  • Convert to a longer term
  • Convert to permanent insurance

How do I apply for term life insurance?

Call us: 905-320-5399

We have aligned ourselves with Canada’s best insurance companies to offer you an extensive range of coverage at affordable rates.