Best Corporate Owned Life Insurance Provider in Canada

Discover a smarter approach to securing your company’s future with corporate-owned life insurance in Canada. Let us help you create a corporate liquidity plan.

At SmartWealth, we bring you more than just coverage; we help you craft a well-thought-out corporate-owned life insurance specific to your current situation, and future goals.

What and Why Get a Corporate-Owned Life Insurance for Businesses in Canada?

A life insurance policy owned, paid for, and whose beneficiary is a privately-held Canadian corporation protects your company against the financial impact of the death of a key employee, shareholder, or business owner.

It allows using tax-advantaged dollars since private corporations are usually taxed at a lower rate; corporate expenditures are often cheaper after tax. Thus, life insurance purchased by a corporation is often more affordable than individual insurance.

Corporate-owned life insurance becomes more advantageous to you, your company, and your loved ones when it’s well-planned with the guidance of an experienced corporate-owned life insurance provider in Canada.

We at SmartWealth specialize in tailoring corporate-owned life insurance plans to the unique needs of owners of privately owned Canadian corporations, providing insurance plans that support key-person, buy-sell agreements, corporate-insured retirement strategies, and tax-efficient corporate wealth transfer.

  • Protect Your Business. 
  • Grow Your Assets 
  • Supplement Your Retirement Cash Flow 
  • Leave a Higher Net Estate to Your Heirs 
  • Utilizing the capital dividend account  

By working with a corporate-owned life insurance provider, incorporated businesses can maximize the benefits of this strategic financial tool to secure both the company’s stability and the financial well-being of its stakeholders.

Smart Wealth Planning for Smart Businesses

Choose SmartWealth Corporate Owned
Life Insurance Offering in Canada

Our corporate-owned life insurance solutions protect your business’s financial future, providing a strategic edge in uncertain times. Don’t just buy life insurance—invest in a tax-advantaged asset class that offers both living and death benefits.

Consult with a SmartWealth Financial Advisor today to help setup your path to lasting success.

Tax Benefits of Corporate Owned Life Insurance Canada

SmartWealth Financial Incorporated, a Corporate Owned Life Insurance provider in Canada helps incorporated small businesses maximize their tax benefits, providing a strategic financial tool that can be utilized to benefit shareholders, and their loved ones. By leveraging the policy’s tax advantages, small business owners can ensure a tax-efficient transfer of wealth to their heirs while safeguarding the company’s financial stability.  

Additionally, incorporating this type of life insurance as an employee benefit enhances the overall compensation package, attracting and retaining valuable talent within the organization. 

  • Economical Premium Expenses: Life insurance premiums, usually non-deductible, become cost-effective through corporate ownership.  
  • Tax-Exempt Life Insurance Benefits: Corporate ownership protects these benefits from additional taxation within the company.  
  • Cost to Acquire Policy: Choosing corporate funds for insurance purchases fast-tracks wealth growth.  
  • Acquisition Expenses of the Policy: “Exempt Policies” allow tax-free wealth growth, boosting financial gains with potentially higher overall returns compared to traditional investments.  
  • Utilizing Leverage in Insurance Choices: Permanent life insurance such as universal life, and participating whole life insurances generates cash values, which can result to compounded wealth growth. The corporation can leverage these assets in case of liquidity needs or cash-out the policy to access the cash surrender values. 
retirement package strategy

Corporate Retirement Strategy

How does corporate owned life insurance work? A corporate-owned cash value life insurance offers a tax-free accumulation of wealth within the policy, presenting a strategic avenue for corporate retirement planning. The accumulated funds can be utilized or leveraged to support a comprehensive retirement strategy.  

Two key methods involve direct withdrawals from the cash values and using the policy as security for tax-free loans. Withdrawals, tax-free up to the adjusted cost base, become taxable if exceeding this base.   

For instance, if the policy holds $1,000,000 in wealth with an adjusted cost base of $600,000, withdrawals up to $600,000 are tax-free, while the excess ($400,000) incurs taxation.   

However, direct withdrawals may diminish the funds inside the policy over time, potentially impacting the death benefit left for beneficiaries’ post-retirement utilization.  

Tax-Advantaged Death Benefits

The death benefit(s) of corporate-owned life insurance can be paid to other shareholders or the deceased’s estate with little or no tax through capital dividends. 

Corporate Owned Life Insurance Purposes

Corporate-owned life insurance is a powerful asset for your business, serving various crucial purposes. Here’s a concise breakdown:  

Funding Buy-Sell Agreements 

Ensures a smooth transition in case of a partner's death, with the policy funding the buy-out of their share. 

Key-Person Insurance

Protect the business by securing funds to hire and train a replacement for an employee in the unfortunate event of their death. 

Estate/Succession Planning  

Designed to benefit heirs by transferring policy benefits as capital dividends upon the business owner's death.

Corporate Retirement Strategy

Allows tax-free wealth accumulation, supporting retirement funding through direct withdrawals or leveraging for bank collateral loans.  

Fund Taxes at Death

Utilizes insurance proceeds to settle capital gains taxes, protecting assets from liquidation to cover tax liabilities.  

Estate Equalization  

Balances the legacy by providing cash to non-active children, ensuring a fair distribution of the business owner's wealth.  

Leave a Legacy 

Enables the business owner to leave a financial legacy to the next generation, even if the business is liquidated or sold post-owner's death.  

Let’s Plan Your Future Wisely

Partner With SmartWealth For Smart Wealth Planning

Let’s build a resilient financial future that stands the test of time. Connect with us today and start a journey towards your financial security. 

Why Choose Ramon Desiderio and SmartWealth Financial Incorporated as your Corporate Owned Life Insurance Agents?

Choosing the right Corporate Owned Life Insurance (COLI) agents is pivotal for your business’s financial well-being. Here’s why Ramon Desiderio and SmartWealth Financial Incorporated stand out: 

  • Proven Expertise 

    SmartWealth Financial Incorporated is a trusted parter known for corporate and individual life insurance wealth planning.  

  • Holistic Financial Approach 

    SmartWealth doesn’t just offer insurance solutions; we integrate smart financial strategies that contribute to your overall wealth growth and financial security. 

  • Accessible Guidance 

    Personalized support is a cornerstone. Ramon and his team are readily available to address queries and provide expert advice. 

  • Long-Term Partnership

    Beyond transactional interactions, Ramon and SmartWealth focus on building enduring relationships with their clients.

Choosing SmartWealth means securing not just insurance services, but a collaborative partnership committed to improving your corporate financial resilience. 

Looking For A Trusted Corporate Owned Life Insurance Provider In Canada?

Boost your business strategy with a partner who understands financial resilience. SmartWealth Corporate owned life insurance services guide you to what to do towards a more secure future. 

Corporate Owned Life Insurance FAQs:

What are the types of Corporate Life Insurance?   

Corporate-owned life insurance encompasses various types, including: 

  • term life insurance 
  • whole life insurance 
  • universal life insurance 
  • term to 100 

To optimize this strategy, it is advisable to structure it as participating whole life or universal life insurance. These options provide tax-advantaged wealth accumulation within the policy. 

What is the strategy on how corporations can use Corporate Owned Life Insurance? 

A corporate-owned cash-value life insurance strategy not only provides the corporation with a financial safety net in case of the death of a key person or to fund a buy-sell agreement between shareholders. It also allows for tax-free wealth accumulation, which the shareholder(s) can utilize to fund a tax-efficient corporate retirement strategy and pass on corporate wealth strategically to the next generation.

Contact us to learn more about how you can utilize your Corporate Owned Life Insurance. 

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