Corporate-owned participating whole life insurance is not appropriate for every business owner or every corporation. Whether it is suitable depends on the facts of your corporation, your cash flow, your objectives and your overall plan.
All life insurance is subject to underwriting. Coverage, cost and availability depend on insurability, including age and health, and are not guaranteed until a policy is issued and in force.
Participating policy dividends are not guaranteed. Illustrated non-guaranteed values depend on the insurer's dividend scale, which can change. Guaranteed and non-guaranteed values must be considered separately.
Tax treatment depends on current legislation, administrative practice and the specific facts of your situation, and can change. Capital dividend account (CDA) credits arising from life insurance proceeds depend on the policy's adjusted cost basis and other statutory adjustments; paying a capital dividend requires sufficient CDA balance and a valid election.
Policy loans and third-party collateral borrowing involve interest costs, lender requirements, ongoing terms, risks to the policy and possible tax consequences. Access to capital is not automatic or free.
Passive investment income and small business deduction rules depend on your corporation and its associated group. Figures shown anywhere on this site are educational illustrations only and are not projections of your results.
This content is educational only. It is not tax, legal, investment or accounting advice. Coordinate any planning with your qualified accounting and legal professionals before acting.
© 2026 Ascendant Financial. Retain Your Earnings™ is an educational campaign for Canadian incorporated business owners.
