Tax Talk Podcast
A monthly podcast with a wide range of guests focused on helping Canadian small business owners make decisions surrounding incorporation, growing their business efficiently, and implementing successful succession, estate planning & tax planning strategies.
Tax Talk Podcast
Corporate Life Insurance: 3 Questions You Need to Ask | EP 054
Corporate life insurance represents one of the most powerful yet misunderstood financial tools available to you as a business owner. While you may recognize its potential benefits, the complexity surrounding these policies often leads to poor decisions that can impact your business operations and estate planning.
On this episode of the Tax Talk Podcast, we’re cutting through the complexity to deliver practical, actionable insights for business owners considering corporate life insurance as part of their tax and estate planning strategy. Whether you're funding buy-sell agreements, planning wealth transfer, or seeking tax-efficient investment vehicles, this conversation provides the clarity you need to make informed decisions.
Perfect for business owners, entrepreneurs, and anyone interested in advanced tax planning strategies.
Essential Pre-Purchase Strategy:
- Why involving your accountant is critical before purchasing
- Three fundamental questions every business owner must answer
- When term insurance might be the better solution
Six Key Benefits:
- Using after-tax corporate dollars for maximum efficiency
- Preserving your small business deduction
- Tax-sheltered growth and flexible borrowing options
- Creating Capital Dividend Account (CDA) for tax-free wealth transfer
- Building valuable collateral for business financing
- Premium flexibility for changing business needs
Implementation Insights:
- Required vs. optional premium structures
- Leveraging policy cash value for business opportunities
- Annual policy reviews and performance monitoring
- Choosing the right advisor and insurance carrier
Find us at:
Legacy Accounting LLP
https://www.legacyllp.ca/
reception@legacyllp.ca
Rylan Olsen
Swell Private Wealth Ltd.
rylan@swellwealth.com
403-487-0490
00:00 Kicking it off
00:52 Overview of the episode
02:02 What business owners should consider before purchasing a life insurance policy
06:14 Three questions to drive your decision
11:54 The benefits of owning a life insurance policy within your corporation
23:52 Who you buy your life insurance from matters
26:58 Capital Dividend Accounts (CDA)
30:06 "It's like buying a truck"
40:00 Wrapping it all up
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