Corporate insurance can do more than protect against risk. For the right incorporated professional or business owner, it may also support long-term corporate planning through permanent life insurance, cash value accumulation, estate liquidity, and return of premium options on eligible critical illness or disability policies.
We explain these strategies clearly, so you understand the benefits, costs, conditions, and limitations before making any decision.
What We Discuss
We provide education-focused conversations around corporate insurance strategies for incorporated professionals and business owners.
These discussions may include corporate-owned life insurance, permanent insurance with cash value features, shared ownership critical illness coverage, disability income protection, return of premium options, and advanced strategies such as the Immediate Financing Arrangement where appropriate.
For clients with strong corporate cash flow and a need for long-term protection, we may also review how corporate-owned permanent life insurance can support asset accumulation, estate liquidity, and business continuity planning.
For clients who value protection but also want to understand potential refund features, we may discuss return of premium options available on certain critical illness or disability insurance policies.
The goal is to help you understand what each strategy is designed to do, what it may cost, what conditions apply, and whether it fits your personal and corporate circumstances.
How the IFA Works
Your corporation purchases a permanent life insurance policy. 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. The loan proceeds are reinvested for income-producing purposes — making the interest deductible under paragraph 20(1)(c) of the Income Tax Act, where funds are traced directly to an eligible, income-earning business or investment. The Net Cost of Pure Insurance (NCPI) also becomes tax-deductible. At death, the tax-free death benefit repays the loan, and the surplus flows to your estate through the Capital Dividend Account — completely tax-free.
Topics May Include:
- How the IFA is structured and how capital access is maintained
- The two legislated tax deductions under the Income Tax Act
- How permanent life insurance builds cash value inside a professional corporation
- Estate transfer through the Capital Dividend Account
- How the strategy self-funds after the premium payment period