For Incorporated Individuals & Business Owners

You Built the Corporation.
Now Let's Make Sure
It's Working for
Your Future.

If you are incorporated in Canada — whether you are a business owner, self-employed professional, contractor, or entrepreneur — your corporation creates financial Education opportunities that most general conversations never fully address. We are here to help you understand them.

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✔ Education-first approach
✔ Independent insurance practice
✔ Carrier-provided illustrations
✔ No obligation
Sound Familiar?

What Many Incorporated Individuals Are Navigating

Incorporating was the right decision. But a professional corporation introduces Financial Education dynamics that standard advisory conversations were never designed to address. If any of the following sound familiar, there may be strategies worth understanding.

City
01
Retained Earnings Sitting Idle
Corporate retained earnings held in a savings or investment account are subject to passive income tax — at some of the highest rates in Canada. Without a deliberate structure, this tax drag quietly compounds over time.
02
No Corporate Insurance Strategy
Many incorporated individuals have personal insurance — but no strategy for how insurance fits inside their corporation. Corporate-owned life insurance and the IFA can create estate value and capital efficiency that personal policies do not.
03
Limited Estate Planning Visibility
What happens to the wealth inside your corporation if something happens to you? Without a clear structure in place, corporate assets may face significant tax exposure before they reach your family. Insurance can help create a defined, structured position.
04
Unclear on What’s Available
Most incorporated individuals know there are corporate Financial Education strategies beyond registered plans — but haven't had a clear, plain-language conversation about what those strategies actually involve and whether they apply to their situation.

The Immediate Financing Arrangement is one such strategy — and it is available to incorporated individuals across a range of professions and industries. Here is how it works.

The Strategy

The Immediate Financing
Arrangement — In Plain Language

A corporate insurance strategy that combines permanent life insurance with a collateral
loan — building estate protection while keeping your corporate capital accessible.

Strategy Session
01

Your Corporation Purchases Permanent Life Insurance

Your corporation purchases a participating whole life insurance policy from a leading Canadian Tier-1 insurer. The annual premium is paid by the corporation. This is permanent, cash-value insurance — not term coverage.

02

The Lender Returns Your Capital the Same Day

The policy is assigned to a third-party lender or financial institution as collateral. The lender returns 100% of the annual premium to your corporation on the same day. Your capital stays accessible — it does not leave the corporation permanently.

Personalized Illustration
Implementation
03

Two Legislated Tax Deductions

The loan proceeds are reinvested by the corporation for income-producing purposes. The interest on the loan becomes deductible under paragraph 20(1)(c) of the Income Tax Act — provided the funds are traced directly to an eligible, income-earning use. The Net Cost of Pure Insurance (NCPI) also becomes tax-deductible. Both deductions are legislated provisions — written into the Income Tax Act for this exact type of structure.

04

Tax-Free Estate Transfer at Death

At death, the tax-free death benefit from the life insurance policy automatically repays the outstanding loan. The surplus flows to your family's heirs completely tax-free through the Capital Dividend Account — one of the most efficient corporate estate transfer mechanisms available in Canada.

Ongoing Advisory
Implementation
05

Self-Sustaining After 10 Years

After the premium payment period — typically 10 years — the policy becomes completely self-sustaining. The growth within the policy covers future costs, and the strategy continues with no further cash outlay from your corporation.

Based on Actual Carrier Illustration

What the Numbers
May Look Like

The figures below are drawn from an actual carrier-issued illustration: male, age 50, non-smoker, Ontario professional corporation, $100,000 annual premium. They are not a guarantee of future performance. Individual results will vary based on age, health classification, province, corporate income, interest rates, and dividend scale.

These figures are for illustrative purposes only. Your illustration will reflect your specific age, health classification, province, and corporate income.

$2,629
Net Corporate Cost
Year 1
$1,585,715
Estate Protection
Day 1
$140,544
Total Net Outlay
10 Years
$2,072,446
Net Death Benefit
Year 20
$1,684,527
Policy Cash Value
Year 20
17.31%
IRR on Net Death Benefit
Year 20
Why This Strategy May Suit Incorporated Individuals

Why Incorporated Individuals Are Exploring This Strategy

Consistent Corporate Income The IFA works best where corporate income is consistent and retained earnings are accumulating. Many incorporated business owners, contractors, and self-employed professionals are in exactly this position — with growing corporate savings that are subject to ongoing passive income tax.

A Need for Permanent Life Insurance Incorporated individuals with estate protection goals, buy-sell agreement considerations, or key-person coverage needs may already have a reason to carry permanent life insurance inside their corporation. The IFA structures that coverage more efficiently.

Insurability Is Time-Sensitive As with all permanent life insurance strategies, eligibility depends on health status. The most favourable time to explore the IFA is while your insurability is strong — and before health changes make coverage more costly or unavailable.

Is This for You?

Who the IFA
Is Designed For

Strong fit if:

  • ✓ Incorporated in Canada — any profession or business type
  • ✓ Professional corporation earning $250,000+ annually
  • ✓ Retained earnings accumulating inside your corporation
  • ✓ Good health status and eligible for permanent life insurance
  • ✓ A need for permanent life insurance — estate, key-person, or buy-sell planning
  • ✓ A long-term planning horizon — the IFA is a 10 to 20-year structure
  • ✓ Between the ages of 35 and 65 — earlier arrangements generally offer better long-term economics

May not be the right fit if:

  • ✗ Not yet incorporated or not operating through a corporation
  • ✗ A health condition that affects life insurance eligibility
  • ✗ A health condition that affects life insurance eligibility
  • ✗ All available capital required for short-term business reinvestment

Who We Work With

  • • Dentists
  • • Lawyers
  • • Engineers
  • • Accountants
  • • Consultants
  • • Contractors
  • • Real Estate Professionals
  • • Technology Entrepreneurs
  • • Business Owners
  • • Emergency Medicine Specialists
  • • Self-Employed Professionals across all industries and provinces
Common Concerns

Questions We Hear — Answered Directly

01 I don't understand why my corporation would take on a loan.

The loan in an IFA is not structured like a conventional business loan. The outstanding balance is designed to be repaid entirely by the life insurance death benefit — not by your family, your personal assets, or business cash flow. The loan provides capital access; the insurance provides the repayment. It is a different kind of liability with a built-in resolution.

02 What Is this only for large corporations or very high incomes?

The IFA is most effective where corporate income is consistent and sufficient to support the annual loan carrying costs. While it is commonly discussed in the context of high-income professionals, it may be applicable to a range of incorporated individuals depending on their specific corporate income, insurance needs, and personal circumstances. A session will help clarify whether it may be appropriate for your situation.

03 Is My accountant hasn't mentioned this strategy.

This is very common. The IFA sits at the intersection of insurance, corporate banking, and tax law. Most accountants do not proactively identify this type of strategy — but they are able to validate it once it is brought to them with the relevant carrier illustration and ITA references. We provide that documentation as part of our process.

04 Is the CRA comfortable with this?

Yes. The IFA is built on two legislated provisions of the Income Tax Act — paragraph 20(1)(c) for the loan interest deduction, and the second deduction for the insurance cost. These are not grey-area interpretations. We encourage every client to share the documentation with their accountant before making any decisions.

Office
Client Perspectives

What Incorporated Individuals Say After the Strategy Session

"I had heard about corporate insurance strategies but never had them explained clearly. The session was educational and practical — and I left with a much better understanding of what the IFA actually involves and whether it might work for my situation."
Client
Business Owner, Ontario
Incorporated | 5 years
Your Next Step

Ready to Understand What May Be Possible for Your Corporation?

Every conversation starts with your corporate circumstances. If the IFA or another insurance strategy appears to be relevant to your situation, we can discuss arranging a personalized, carrier-issued illustration at no cost — so you can review the actual numbers before making any decision.

Book Your Complimentary Strategy Session
  • ✓ Complimentary session — no fee
  • ✓ No obligation to proceed
  • ✓ Carrier-issued illustration available if applicable
  • ✓ Encourages your accountant's independent review
  • ✓ Available to incorporated individuals across all Canadian provinces

Or reach us directly: | +1 (647) 490-6250

Frequently Asked Questions

More Questions — Answered