Business-Owned Universal Life Insurance
What is business-owned universal life insurance?
It’s a flexible way of purchasing permanent life insurance.
You are in control of your investments, which grow on a tax-free basis.
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 have flexibility with your investment options and your cash value grows on a tax-free basis, which you can use at any point.
- You can pick a specific amount of insurance that covers your needs.
- Your insurance will not expire as long as you pay your premiums.
- 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 universal 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 your corporation to your estate and family.
- Provides you with flexible investment options within your insurance policy.
- Gives you access to capital for your business in case of an emergency or any other need.
- Funds a buy-sell agreement between business partners.
- Key person protection for you and your key employees.
- Increases the value of your company and converts any retained earnings you have into non-taxable growth
How much does life insurance cost?
Several factors determine the price of life insurance, including:
- Amount of insurance needed
How do I apply for universal 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.