Corporate or Personally Owned Life Insurance

April 9, 2021

There may be substantial tax benefits to corporate owned life insurance that business owners need to consider. We always encourage our clients to speak with their Accountants and Financial Advisors in addition to their Insurance Provider when it comes to life insurance. In the 2012 federal budget there were proposed changes to the exempt test for life insurance policies that may create an influx of insurance proposals targeted to grandfathering the old preferential tax treatment to policies issued. We predict that many of the insurance proposals will involve corporate-owned life insurance which will require dealing with experienced professionals to ensure business owners needs are being met.