Ontario Business Owners With $1M+ in Corporate Assets
You could lose up to 50% of your retained earnings to the CRA when you pass away.
Corporate-Owned Life Insurance can help protect your hard-earned wealth for your family.
Find out your potential tax exposure with our short quiz.
What Happens If You Don't Have Corporate-Owned Life Insurance?
When you pass away, your family could be left dealing with significant financial challenges.
A Large CRA Tax Bill
Your estate could face substantial taxes on the value of your business and other assets.
Your Family Could Be Forced to Sell Assets
Without enough cash to cover taxes, your family may need to sell investments, properties, or business assets.
Years of Hard-Earned Wealth Could Be Lost
A significant portion of the wealth you've spent your life building could go toward paying taxes.
Your Family Could Inherit Financial Stress
Instead of enjoying the wealth you've built, your loved ones could be left managing tax bills and difficult financial decisions.
Don't Leave Your Family With an Unexpected Tax Bill.
See Your Potential Tax BillWhat Is Corporate-Owned Life Insurance?
Corporate-Owned Life Insurance is a life insurance policy owned and paid for by your corporation.
When the insured person passes away, the corporation receives a generally tax-free death benefit.
This money can help:
- Cover potential tax liabilities
- Protect corporate assets
- Preserve your family's wealth
- Support business succession planning
- Provide cash when your family needs it most
How Is Corporate-Owned Life Insurance Different From Regular Life Insurance?
The biggest difference is who owns the policy, who pays for it, and who receives the money when you pass away.
Who owns it?
Regular Life InsuranceYou personally
Corporate-Owned Life InsuranceYour corporation
Who pays?
Regular Life InsuranceYou personally
Corporate-Owned Life InsuranceYour corporation
Who receives the payout?
Regular Life InsuranceYour chosen beneficiary
Corporate-Owned Life InsuranceYour corporation
Death benefit
Regular Life InsuranceGenerally tax-free to beneficiary
Corporate-Owned Life InsuranceGenerally tax-free to corporation
Main purpose
Regular Life InsuranceProtect your family
Corporate-Owned Life InsuranceProtect your business and support estate planning
Tax planning
Regular Life InsurancePersonal estate planning
Corporate-Owned Life InsurancePotential corporate and estate tax advantages
Example: A Business Owner With $1.5M in Corporate Assets
Regular Life Insurance
You personally own the policy and pay premiums.
When you pass away, your family receives the insurance payout directly, generally tax-free.
Corporate-Owned Life Insurance
Your corporation owns the policy and pays premiums.
When you pass away, the corporation receives the payout, which can help cover taxes, business obligations, and potentially fund tax-efficient distributions to shareholders.
Why Business Owners Consider Corporate-Owned Life Insurance
- Pay premiums using corporate funds rather than withdrawing money personally.
- Help cover potential tax liabilities when the owner passes away.
- Preserve business assets and family wealth.
- Potentially transfer insurance proceeds to shareholders tax-efficiently through the capital dividend account (CDA).
Important: Corporate insurance premiums are generally not tax-deductible. Corporate ownership also introduces tax and estate-planning considerations, so it isn't automatically better than personal life insurance.
How Does Corporate-Owned Life Insurance Work?
Step 1
Your Corporation Owns the Policy
Your corporation purchases and pays for the life insurance policy.
Step 2
Your Business Gets Protected
The policy provides life insurance coverage that can help address future financial obligations.
Step 3
Your Corporation Receives the Benefit
When you pass away, your corporation receives a generally tax-free death benefit.
Step 4
Your Family's Wealth Is Protected
The proceeds can help cover taxes and other obligations, reducing the need to sell valuable assets. Depending on applicable tax rules, some proceeds may also be distributed tax-efficiently to shareholders.
5 Reasons Business Owners Choose Corporate-Owned Life Insurance
Help Cover CRA Taxes
Provide funds to help cover potential tax liabilities when you pass away.
Protect Your Corporate Assets
Reduce the risk of having to sell business assets to cover financial obligations.
Preserve Your Family's Wealth
Help keep more of your hard-earned wealth available for your loved ones.
Plan for Business Succession
Help your business and family prepare for the unexpected.
Create Financial Security
Provide funds when your family and business may need them most.
Have $1M+ in Corporate Assets?
Find Out How Much Your Family Could Owe to the CRA.
Many business owners spend years building wealth without fully understanding the potential tax consequences when they pass away.
Don't wait until it's too late to plan.
Take our short quiz to explore your potential tax exposure and learn whether Corporate-Owned Life Insurance could help protect your family's financial future.
Michael Siminic
Life Insurance Advisor
20+ Years Experience
Helping business owners, professionals and entrepreneurs protect their wealth and build a lasting legacy through personalized life insurance strategies built on trust, integrity, and a deep understanding of their financial goals.