Business-Owned Universal Life Insurance

Working women Business owner permanent 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.
Smiling Business owner permanent life insurance

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
  • Age
  • Health
  • Gender
  • Occupation

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.