Advantage of Corporate owned Insurance

1. If your business loans, lines of credit or mortgage are
protected through creditor insurance you are opting
out of benefits only available with a corporate owned
insurance contract.
Corporate - owned insurance is …
• Usually less expensive than bank insurance
• Provides more control
• Provides more flexibility
• Provides a significant tax advantage
Insurance Company Bank Will/May
Will
Let you choose the beneficiary Name themselves as beneficiary
Provide the beneficiary with several Pay only in lump sums to themselves
settlement options
Guarantee partial protection from Say creditors take all in the event
creditors of death
Provide professional help in settling Provide no such professional help
the estate
Pay in the event of suicide (after Not pay in event of suicide
2nd policy year
Waive your premiums if you are Cancel your plan and call the loan
disabled and can’t pay them if you are disabled and can’t pay
Include option to change to permanent Have no conversion option
insurance
Guarantee your future insurability Have no conversion option
Continue your coverage after the debt Cover only while you have this debt
is paid off
Coverage benefit is constant, you are Only outstanding indebtedness is
paid out full face amount paid – premium is set at application
Solid Financial Solutions
Independence for Independent Business Owners
Laurie Blake (905) 853-1400
“In these uncertain economic times protecting In Business for Business
ourselves and our assets is more crucial than ever before.”

2. The Corporate Owned Insurance Tax Advantage
Tax Savings of $160,000
on Future Dividends
Remaining Canada Revenue Agency
Shareholder
(s) CDA Credit of
$500,000
Death
Benefit
Paid to
Corp. $500,000
Business Loan
Repaid
B A N K
$500,000 Life
Insurance
Policy Insurance through Insurance
an insurance through a bank
company
Loan Amount $500,000 $500,000
Death Benefit Amount $500,000 $500,000
Loan Amount after Death $0 $0
Credit to CDA $500,000 $0
Future tax savings from $160,000 $0
CDA (32%)
Solid Financial Solutions
Independence for Independent Business Owners
Laurie Blake
(905) 853-1400