Bank On Whole Life for Business
We help incorporated business owners use participating whole life insurance to protect the business, build long-term corporate wealth, and create access to capital in a tax-efficient way.
What is Bank On Whole Life for Business?
Bank On Whole Life for Business is a planning approach that uses a properly structured corporate-owned participating whole life insurance policy to help business owners protect the company, build cash value inside the corporation, and create a long-term asset the business can access and control.
See How This Strategy Works
Watch this short video to learn how this strategy can support protection, growth, and long-term planning for your business.
Why Business Owners Use It
Protection
A special alternative asset class, corporate-owned participation whole life insurance is a comprehensive financial solution that shields your business and its interests against unforeseen hazards. The cash value of a corporate-owned participating whole life insurance policy can be used to finance buy-sell agreements and key-person protection when it is structured using one of our Bank On WholeTM concepts. It can also give your company a resource to optimize funds to manage liabilities
Cash Flow & Business Financing
The cash value of a corporate-owned participating whole life policy, when structured using one of our Bank On Whole LifeTM concepts, gives your company or corporation easily available, liquid capital that increases equity annually through possible dividend earnings and guaranteed returns. This equity gives your company easily accessible funds that you can employ for business finance.
Tax Advantages
Unlike other savings and investment products, the cash value of a corporate-owned participating whole life insurance policy is not taxed as a capital gain when it is structured utilizing one of our Bank On Whole LifeTM concepts. Within the bounds specified by the Income Tax Act and Regulations, the policy’s cash value increases on a tax-preferred basis. As a business owner, this gives you a tax-sheltered way to hold retained earnings while maintaining uninterrupted capital growth.
Retirement
The cash value of a corporate-owned participating whole life policy can be utilized to pay for business expenses during your working years if it is structured utilizing one of our Bank On Whole LifeTM concepts. As long as the cash value in your corporation policy is increasing, it can be used as funding or an additional source of tax-free retirement income when you eventually quit working, according to current income tax rules.
Corporate Estate Transfer
By reallocating corporate surplus from taxable investments into a corporate-owned participating whole life insurance policy structured with one of our Bank On Whole LifeTM concepts, the Corporate Estate Transfer can help you lessen the impact of the “double tax trap” of transferring your shares from your corporation to your estate if you are the owner of a corporation or a majority shareholder in a Canadian corporation with taxable investments.
Asset Strategy
Corporate-owned participation whole life insurance becomes a supercharged asset when structured utilizing one of our Bank On Whole LifeTM concepts. It gives your company easily accessible, liquid cash that increases equity year after year through assured returns and possible dividend profits. You can utilize the cash value of your corporate-owned participating whole life insurance policy as collateral for other sources of business financing, fund business expenses, or grow your company. Money from other taxable investments can be reallocated into your corporate-owned participation whole life insurance policy as a tax-advantageous asset in your company’s overall financial strategy.
