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TFSA, RRSP, and Life Insurance provide tax-advantage investment opportunities for individuals in Canada.
For incorporated business owners and professionals, corporate life insurance is the exclusive tax-free investment option available. Life insurance can provide tax efficiencies and liquidity on death in a way that few products can. |
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Permanent life insurance should be viewed as an investment, not an expense.
Premiums paid into a permanent life insurance policy build an investment fund. This fund grows tax-free. The death benefit and CDA are tax-free. Yes, it’s all about the CDA. Why? Because life insurance works this way in Canada. What’s the outcome? An alternative investment wrapped in life insurance worth understanding. |
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For decades, permanent life insurance has been a trusted investment choice for successful entrepreneurs and incorporated professionals, offering capital protection, wealth growth, and estate advantages.
Utilizing life insurance to fund taxes on death or to allow for the redemption of shares on the death of a key shareholder (coupled with a buy-sell agreement) are important, practical strategies that can help to prevent disputes among parties while minimizing the need for the forced sale of assets on death. The credit of the death benefit to the capital dividend account can also ensure a tax-efficient dividend outflow of capital to the estate or beneficiaries of a business owner, following their passing. |