Life Care Insurance

Toll Free : 1 877 495 2525

Corporate Retirement Strategy

You own a private corporation that has a significant amount of its wealth in taxable investments. You want to grow and protect the value of your corporation to maximize what can be left to beneficiaries. You’re also looking for the flexibility to access some of the money in the future in case you need to supplement your income.

During Your Lifetime

The Corporate Retirement Strategy provides tax-efficient growth and access to the cash values if needed, while offering you the protection you were looking for. By using life insurance, the estate value available for future generations can be significantly increased by the tax-free death benefit and resulting credit to the corporation’s capital dividend account (CDA).

On Death

How it works

Your corporation buys a permanent life insurance policy on your life to protect the value of the corporation for future generations. Your corporation owns the policy, pays the premiums and is also the beneficiary.
In addition to protection, the policy also offers a number of benefits.

When to use it

Consider this strategy if you:

Are the shareholder and key-person of a Canadian controlled private corporation (CCPC)

Have a successful business with either excess income or a large corporate surplus, and a sound future outlook

Have maximized your individual RRSP and TFSA contributions

Are interested in reducing tax on corporate investment income

Want access to cash for business opportunities in the future, if needed

There are additional considerations and risks associated with the Corporate Retirement Strategy beyond those discussed here. Policy loans and withdrawals may have tax implications. Before implementing any strategy, consult with your tax and legal advisors.