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Corporate Insured Retirement
Planning Services

Strategic Wealth Accumulation for Owners of Private Corporations in Canada 

Secure your financial future with a powerful, client-centric approach that meets your objectives and enhances your net estate value.  

At SmartWealth, we stand out as your dedicated corporate insurance retirement plan provider. We go beyond simply offering insurance retirement plans – we provide a clear roadmap to financial success. Let our life insurance for retirement planning serve as the cornerstone of your strategic wealth accumulation, ensuring a secure and prosperous future. 

What is a Corporate-Insured Retirement Plan?

SmartWealth’s Corporate Insurance Retirement Plan services (CIRPs) are crafted for business owners aiming for tax-efficient growth of surplus funds within their corporate entity. We prioritize retirement planning and offer a comprehensive and strategic approach, ensuring your financial resources are optimized for a secure retirement. 

As an owner of privately-held Canadian corporation, you have three choices for utilizing unused corporate funds:   

  • Risk paying taxes on the highest corporate tax-bracket for passive corporate investment(s)  
  • Draw corporate funds and invest individually 
  • Let the surplus funds sit idle in your corporate account  

Optimize your financial strategy with CIRP for tax-efficient wealth growth for yourself, while building a higher net estate value for the next generation.  

Securing Tomorrow Starts Today

Looking To Get A Corporate Insurance Retirement Plan? SmartWealth Can Help You!

We believe in strategic insurance planning with proven financial wisdom. Your future starts now; let’s plan it together. 

Securing Tomorrow Starts Today

Looking to get a Corporate Insurance Retirement Plan? SmartWealth Can Help You!

We believe in strategic insurance planning with proven financial wisdom. Your future starts now; let's plan it together. 

Schedule an Appointment

Securing Tomorrow Starts Today

Looking to get a Corporate Insurance Retirement Plan? SmartWealth Can Help You!

We believe in strategic insurance planning with proven financial wisdom. Your future starts now; let's plan it together. 

Schedule an Appointment

Securing Tomorrow Starts Today

Looking to get a Corporate Insurance Retirement Plan? SmartWealth Can Help You!

We believe in strategic insurance planning with proven financial wisdom. Your future starts now; let's plan it together. 

Schedule an Appointment

Benefits of Getting Corporate Insured
Retirement Plan

A well-planned Corporate Insured Retirement Plan offers numerous benefits by securing your retirement and maximizing wealth within the corporation. Our clients get to enjoy the following: 

  • Tax Savings – Redirect surplus corporate funds into a participating whole life insurance policy for tax-deferred growth, saving current and future taxes.  
  • Retirement Security – Ensure an extended income stream during retirement, outperforming alternative investments.  
  • Enhanced Estate Values – Immediate access to tax-free life insurance proceeds bolsters your corporate assets in the hands of your heirs.
  • Permanent Insurance Protection – Safeguard stakeholders’ financial interests as your company grows, with the death benefit increasing over time.  
  • Use of “Cheaper” Corporate Dollars – Leverage corporate assets efficiently for wealth accumulation.  
  • Cash Values as a Corporate Asset – Utilize cash values within the corporation for financial flexibility.  
  • Tax-Deferred Accumulation – Benefit from tax-deferred growth within exempt life insurance.  
  • Tax-Efficient Access to Cash Values – Access cash values through a tax-efficient bank loan strategy.  
  • Tax-Efficient Legacy – Ensure tax-free payout of life insurance death benefit and other assets to the estate, equal to the amount of the capital dividend account (CDA).  

Experience all these benefits and while securing your retirement. Talk to one of our associates today to learn more. 

How a Corporate Insured Retirement Plan Works

A Corporate Insured Retirement Plan is a strategic financial approach for owners/shareholders of private Canadian corporations. It helps them grow, protect, and amplify their wealth by redirecting surplus funds toward a corporate-owned life insurance policy designed for wealth growth. 

By channeling surplus funds into a corporate-owned life insurance policy, typically a permanent one like participating whole life or universal life insurance, the plan combines insurance coverage with a tax-sheltered portfolio or dividend-paying savings account.  

  • Contributions cover insurance costs: Excess funds are invested in market portfolios or saved in a dividend earning account for tax-efficient cash value growth.  
  • Automatic reinvestment of earnings: Compounds cash values and death benefits.  
  • Ingeniously intertwines insurance and asset growth: Ensures financial security and long-term wealth accumulation for the corporation and stakeholders.  
corporate insured retirement plan works

How Corporate-Insured Retirement Plan Maximizes Asset Growth

The Corporate-Insured Retirement Plan strategically maximizes asset growth through tax-deferred advantages and uninterrupted wealth accumulation:   

Leveraging for Uninterrupted Growth  

Utilizing third-party borrowing instead of direct fund withdrawal ensures continuous wealth growth, as policy cash values earn dividends and compound even during usage.  

Tax-Deferred Growth  

Unlike traditional investments, the plan’s asset growth remains tax-free within the life insurance policy, allowing for higher compounded growth over time.  

 

Considerations with Universal Life  

While universal life can serve as the core policy, leveraging may require a portfolio shift to fixed-income instruments, potentially affecting wealth growth based on the interest environment.   

Predictable Wealth Growth  

With participating whole life insurance, policy dividends offer a more stable wealth growth than fluctuating market returns, averaging between 6.25% and 6.65%.   

 

The Corporate-Insured Retirement Plan stands out for its tax-efficient and growth-maximizing approach, securing a robust financial future.   

Make Life Insurance Wealth Plan the Foundation of Your Retirement Strategy

Interested In Getting Corporate Insured Retirement Plan? SmathWealth Financial Advisors Can Help You

We offer a Corporate Insured Retirement Plan that goes beyond traditional retirement planning. Learn how to utilize life insurance as a retirement plan and set the stage for financial success. 

Make Life Insurance Wealth Plan the Foundation of Your Retirement Strategy

Interested in Getting Corporate Insured Retirement Plan? SmathWealth Financial Agents Can Help You

We offer a Corporate Insured Retirement Plan that goes beyond traditional retirement planning. Learn how to utilize life insurance as a retirement plan and set the stage for financial success. 

Schedule an Appointment

Make Life Insurance Wealth Plan the Foundation of Your Retirement Strategy

Interested in Getting Corporate Insured Retirement Plan? SmathWealth Financial Agents Can Help You

We offer a Corporate Insured Retirement Plan that goes beyond traditional retirement planning. Learn how to utilize life insurance as a retirement plan and set the stage for financial success. 

Schedule an Appointment

Risks Associated with Corporate Insured Retirement Plans in Canada

Just like in any major life decision, understanding and managing risks is important when considering a Corporate Insured Retirement Plan (CIRP). Here’s a concise overview of associated risks and potential solutions:   

Market Risk 

Universal life-based CIRPs asset growth depends on market performance.  

Solution: Use participating whole life insurance as the core policy for your corporate insured retirement plan to completely avoid fluctuating market returns.

Policy Loan Risk 

Policy loans may trigger taxable events.  

Solution: Avoid policy loans; opt for third-party (bank) loans to prevent deemed policy disposition which may trigger a taxable event.

Taxation Risk 

Shifts in tax laws may affect the tax-advantaged standing of CIRPs. 

Solution: Stay abreast of updates and collaborate with a financial advisor for necessary adjustments in case this ever happens. 

Interest Rate Risk 

Changing interest rates can impact borrowing and the net estate value. 

Solution: Diversify your income sources, negotiate fixed rates, and explore interest capitalization strategies. 

Liquidity Risk 

In the initial years, there may be insufficient liquidity for unforeseen cash flow challenges. 

Solution: Establish emergency funds until the policy amasses an adequate cash value. 

Trust SmartWealth to guide your Corporate Insured Retirement Plan with smart wealth strategies and proactive insurance planning. 

retired grandparents

Tips to Maximize Your Insured Retirement Plan

As your trusted financial consultants, we want you to succeed and enjoy your retirement as you should. Here are valuable insights to maximize your life insurance retirement plan: 

  • Understand Policy DetailsGet acquainted with the advantages, limitations, and investment/wealth growth options to make well-informed decisions. 
  • Fund Adequately – Secure ample funding to achieve your retirement goals and prevent any potential income shortfalls. 
  • Regular Review – Regularly assess your policy to align with your current goals and prevailing market conditions, specially when using universal life. 
  • Optimize Investments – Broaden your investments within a universal life policy to strike a balance between risk and return. 
  • Plan for Liquidity – Develop a strategy for unforeseen expenses without unplanned withdrawals.  
  • Utilize Bank Loans – Borrow against cash value strategically, managing carefully to preserve policy benefits.  
  • Leverage Tax Advantages – Make the most of tax benefits, including deferred growth and tax-free death benefit payouts.  
  • Manage Loans and Withdrawals – Borrow judiciously, understanding the impact on policy value and death benefit.  
  • Plan for Long-Term Growth – Make decisions with a long-term perspective, considering retirement and estate goals.  
  • Consider Estate Planning – Understand how your CIRP fits into your broader estate plan for impact on beneficiaries and legacy goals.  
  • Consult with Advisors – Work with specialized financial advisors for insights.   

Maximize your corporate-insured retirement plan benefits for a secure financial future.  

Considerations for Choosing a Corporate Insured Retirement Plan Provider in Canada

Choosing a Corporate Insured Retirement Plan provider involves key considerations between Universal Life Insurance and Participating Whole Life Insurance.   

Consider Personal Risk Tolerance  

Your decision should align with your comfort level regarding risk and the desire for steady asset growth during borrowing.  

Universal Life for Market-Dependent Returns  

While universal life can give you higher net returns, asset growth depends entirely on your portfolio’s performance.  

Participating Whole Life for Independent Growth  

You know that you will always get positive returns because instead of earning market returns, your assets grow through policy dividends, which is a more predictable and less risky asset growth strategy.  

Carrier Selection 

Not all insurance carriers offer these plans depending on what type of policy you implement (participating whole life vs universal life). 

Choose Ramon Desiderio and the Experienced Agents at SmartWealth Financial Incorporated to Guide You

Choose Ramon Desiderio and SmartWealth Financial Advisors to Guide You

Starting a corporate insurance retirement plan? Ramon Desiderio and our financial advisory team at SmartWealth offers one of the most reliable and trusted financial services in Canada. Here are the tops reasons why many others choose us: 

Independent Financial Advisors in Winnipeg
  • Proven Track Record

    SmartWealth Financial Incorporated boasts a track record of successful corporate retirement plans. Your financial journey is in expert hands.

  • Clear Communication

    We simplify the complex to make sure you understand every step of your corporate insurance retirement plan. 

  • Proven Track Record

    SmartWealth Financial Incorporated boasts a track record of successful corporate retirement plans. Your financial journey is in expert hands.

  • Clear Communication

    We simplify the complex to make sure you understand every step of your corporate insurance retirement plan. 

  • Responsive Support

    Questions? Concerns? The SmartWealth team is just a call away. Expect responsive support to guide you through any twists and turns. 

Independent Financial Advisors in Winnipeg
  • Holistic Approach

    It's not just about retirement plans; it's about your overall financial well-being. At SmartWealth, we take a holistic approach to make sure your corporate financial future is on the right track. 

Choosing SmartWealth is more than a choice—it’s a stress-free launch into a secure corporate insurance retirement plan.  

Make Your Retirement Dream A Reality With SmartWealth

Our innovative solutions and expertise pave the way for a secure and prosperous future. Let’s shape the retirement you’ve always envisioned. 

Make Your Retirement Dream a Reality with SmartWealth

Our innovative solutions and expertise pave the way for a secure and prosperous future. Let's shape the retirement you've always envisioned. 

Schedule an Appointment

Make Your Retirement Dream a Reality with SmartWealth

Our innovative solutions and expertise pave the way for a secure and prosperous future. Let's shape the retirement you've always envisioned. 

Schedule an Appointment

Frequently Asked Questions on Corporate Insured Retirement Plans

Redirect surplus funds into a life insurance policy for tax-sheltered asset growth through market portfolios or policy dividends.  

Minimize passive income tax, preserving the small business tax rate. Allows tax-efficient investment and savings growth.

Passive income can reduce deduction limits. Mitigate using a tax-sheltered permanent life insurance policy for optimal tax advantages.  

An asset class enabling tax-efficient growth of surplus corporate funds, exempt from passive income classification.  

To implement a corporate-insured retirement plan and build your retirement nest egg, follow these steps: 

  • Consult with a life insurance advisor. 
  • Decide how much you want to save or how much wealth you want to build inside the policy. 
  • Apply for the life insurance policy with the corporation as the owner and named beneficiary. 
  • Deposit funds into the life insurance policy annually (or monthly). 
  • Let your wealth grow over time. 
  • Put your accountant in communication with your advisor (hopefully us) for annual cash value tracking. 
  • At retirement, apply for a bank line of credit, pledging the policy corporately or personally (your accountant can advise you which option is best. 
  • Access tax-free funds through bank loans to fund or supplement your retirement. 
  • Either service the bank loan interest or have the bank capitalize it. 
  • At death, your holding company will receive the life insurance proceeds tax-free. The bank will then have a lien to the extent of your indebtedness. 
  • The net death benefit is paid tax-free to surviving shareholders or your estate through the capital dividend account. Any funds over the capital dividend account are typically taxed as shareholder dividends. 

Get Started With A Corporate Insured Retirement Plan

Contact us to book an appointment and explore how a Corporate Insured Retirement Plan can work for you. Let SmartWealth help you secure the path to a prosperous retirement and a robust legacy for your heirs. 

Get Started with a Corporate Insured Retirement Plan

Contact us to book an appointment and explore how a Corporate Insured Retirement Plan can work for you. Let SmartWealth help you secure the path to a prosperous retirement and a robust legacy for your heirs. 

Schedule an Appointment
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