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    • Home
    • Your Team
    • PLANNING
      • Estate Planning
      • Planning
    • Investments
      • Investments
      • Guaranteed Investment Cer
      • RESP
      • Segregated Funds
      • Tax Free Savings Account
    • Insurance
      • Insurance
      • Life
      • Critical Life
      • Corporate
      • Travel
      • Disability
    • Disability Planning
      • Disability Planning
      • Disabilty Tax Credit
      • Reg Disability Saving Pln
      • Ont. Disability Support
      • Non-Medical
    • Lending & Mortgages
Truelife Insurance Solutions
  • Home
  • Your Team
  • PLANNING
    • Estate Planning
    • Planning
  • Investments
    • Investments
    • Guaranteed Investment Cer
    • RESP
    • Segregated Funds
    • Tax Free Savings Account
  • Insurance
    • Insurance
    • Life
    • Critical Life
    • Corporate
    • Travel
    • Disability
  • Disability Planning
    • Disability Planning
    • Disabilty Tax Credit
    • Reg Disability Saving Pln
    • Ont. Disability Support
    • Non-Medical
  • Lending & Mortgages

Insurance

Corporate Life

Corporate owners have the unique option to fund life insurance policies through their corporation. When life insurance is owned inside a corporation, the corporation pays the premiums and is the beneficiary of the plan. Owning insurance inside a corporation offers several tax advantages. 


Premiums paid by a corporation will be lower than premiums paid by an individual, so long as their personal tax rate is higher than their corporate tax rate. Also, compared to a corporate investment account, the cash value of a permanent life insurance plan offers tax deferred growth. Upon death of the insured individual, the cost basis of the policy can be paid as a tax-free capital dividend. In this way, a tax-free benefit can be paid to a beneficiary, similarly to a personal insurance policy.


Starting January 1st 2019, investment income in a Canadian-controlled private corporations will reduce their small business deduction (SBD). At $150,000 of passive income, the SBD will be completely eliminated for corporations. Investment Income from a life insurance policy, however, will not contribute to this reduction of the SBD. 

True Life Insurance and Estate Solutions

613.561.8784

Toll-free 1 866 781 2133  |  Email contact@truelifesolutions.ca

218 Kingston Street East, Kingston ON, K7L 3A6


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