Corporate Investment Strategy
This strategy uses life insurance to reduce the impact of double tax trap. Simply redirect some or all of the corporation’s surplus from taxable investments into Par insurance policy that reduce the fair market value (FMV) of the corporation,
- Because only the policy’s cash surrender value is included in the calculation.
- This creates a larger estate and
- May reduce the capital gains tax payable.
- Generate tax-free capital dividends.
- When the proceeds of life insurance policy are paid to the corporation ,amounts in excess of ACB are credited to the Capital dividend account which provides tax free dividends to owners or their beneficiaries.
CORPORATE RETIREMENT STRATEGY
You already know that life insurance can help protect your business by making funds available to pay off debts, fund buy sell agreements and keep the business running. But did you know that cash value of life insurance policy is an asset class that can also benefit you and your business during your lifetime?This strategy can help decrease your corporate taxes and increase your cash flow in retirement. Simply redirect some or all of the corporation’s surplus from taxable investments into a par life insurance policy that grow your assets
- The funds within the insurance policy grow on tax-deferred basis.
- Additional premium can accelerate the growth.
Enjoy your retirement
- You can apply for a personal bank loan using the cash value of corporate policy as collateral.
- The collateral bank loan can supplement your retirement cash flow with tax-free dollars.
Protect your business