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Corporate Owned Permanent Insurance


When should you consider Participating in Whole Life Insurance inside your Corporation? (Permanent Insurance)

  • You’re a significant shareholder in a Canadian Controlled Private Corporation
  • Age 40+ and healthy
  • The corporation has excess annual cash flow and/or investment assets not needed for business purposes. Typically, been in business for at least 5 years.
  • Want to maximize your estate and transfer assets in a tax-efficient manner
  • Looking for stable and predictable asset growth (asset diversification)


Suitability Reasons

The more checkmarks the greater the need for this strategy.

✔️  Business Succession plan in place?
✔️  Reduce tax on corporate investment income?
✔️  Desire to pass corporate assets to a beneficiary?
✔️  Have corporate life insurance needs?
✔️  Own taxable passive investment assets?
✔️  Own corporate investments with a deferred capital gain?
✔️  Want a certain amount of estate value guaranteed?


Comparing a traditional investment to participating whole life insurance while living and at death

Traditional Investment- CFS Wealth Management

Traditional Investment

Participating Whole Life Insurance (Alternative asset class)- cfs wealth management

Participating Whole Life Insurance
(Alternative asset class)

While Living:

  • Taxes payable on investment income: Interest, dividends, realized capital gains
  • Passive investment income: Pay the highest corporate tax rate, no small business deduction

While Living:

  • Policy earnings grow tax-exempt up to government prescribed limits

At Death:

  • Taxes payable on deferred capital gains
  • Taxes payable on the transfer to shareholders estate

At Death:

  • All policy proceeds are paid tax-free to the corporation (no deferred gains)
  • Death benefit minus adjusted cost base paid out tax-free to shareholders estate through a notional Capital Dividend Account


Life insurance is Wealth Protection

Total Wealth = human capital + financial capital

Life insurance is Wealth Protection- cfs wealth management



Interested in learning more,
Don’t hesitate to reach out to us today.
CFS Wealth 1-888-451-6133 or fill out our contact form.
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