Corporate-owned life insurance is a life insurance policy purchased and owned by a Canadian corporation. In this arrangement, the business pays the premiums and receives the death benefit proceeds. Unlike personally-owned policies, the corporation is both the policy owner and the beneficiary, creating unique tax planning opportunities under the Income Tax Act.
Corporate owned life insurance is one of the most effective financial planning tools available to Canadian business owners. Beyond providing a tax-efficient way to protect business continuity, COLI also supports long-term wealth accumulation within the corporation.
Corporate life insurance refers to policies a business owns or uses to protect itself, its employees, or its ownership structure. The main types the HiPoint Financial offer are: Key Person Insurance, Buy-Sell Insurance, Business Succession Insurance, Deferred Compensation Funding and Loan-Collateral or Creditor Insurance.
Speak to your HiPoint Financial professional to see which types of insurances are best suited for your business.
Corporate Life Insurance is a financial planning strategy that allows businesses to use life insurance as a tax-efficient tool for asset growth, estate planning, and retirement security. By shifting corporate surplus from taxable investments into a participating (Par) life insurance policy, companies can lower their tax burden while ensuring steady, long-term financial growth.
