Business-Owned Term Life Insurance
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.
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
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.