Corporate Strategies
Insurance and retirement strategies built for incorporated business owners — protecting the business and building tax-efficient wealth at the same time.
Why This Matters for Business Owners
Small and owner-operated businesses make up the vast majority of Canadian employers, and many depend heavily on one or two key people. The unexpected loss, disability, or retirement of an owner can threaten the business itself — not just their personal finances. Corporate strategies use the business structure itself (retained earnings, corporate tax rates, and permanent insurance) to manage that risk more efficiently than personal coverage alone.
Our Corporate Strategy Products
- Business Overhead Expense Insurance — keeps rent, payroll, and other fixed overhead covered if an owner or key person becomes disabled.
- Corporate-Owned Life Insurance (COLI) — a corporation-owned policy that funds buy-sell agreements and can distribute proceeds as tax-free capital dividends.
- Insured Retirement Plan (IRP) — uses a permanent policy's cash value to supplement retirement income for incorporated owners.
Frequently Asked Questions
What is corporate-owned life insurance and why would a business use it?
Corporate-owned life insurance (COLI) is a policy purchased and owned by the corporation, usually on a key person like an owner or executive. Premiums are paid from company earnings, and the death benefit is paid tax-free to the corporation, which can then fund a buy-sell agreement, pay out a deceased owner's shares, or distribute proceeds to shareholders as tax-free capital dividends rather than taxable dividends.
What does Business Overhead Expense Insurance cover?
It's designed to cover a business's fixed operating costs — rent, utilities, employee salaries, and similar overhead — if an owner or key person becomes disabled and can't work. It keeps the business running while the owner recovers, separate from any personal disability coverage that replaces their own income.
How does an Insured Retirement Plan work?
An Insured Retirement Plan (IRP) uses a permanent life insurance policy's cash value as a tax-advantaged way to supplement retirement income, typically by borrowing against the policy's cash value rather than withdrawing it directly. It's generally most useful for incorporated business owners who have already maximized other registered savings options.
Are these strategies only for large businesses?
No — over 98% of employer businesses in Canada are small businesses, and many of these strategies are built specifically for owner-operated or small incorporated businesses where the loss of one key person would have an outsized impact.
How do I know which corporate strategy is right for my business?
It depends on your business structure, how much you've already saved personally versus corporately, and what risk you're most exposed to — losing a key person, an owner's disability, or retirement income. An advisor can walk through your specific situation rather than applying a generic recommendation.