{"id":615,"date":"2025-05-30T15:49:50","date_gmt":"2025-05-30T19:49:50","guid":{"rendered":"https:\/\/legacymedadvisors.ca\/?page_id=615"},"modified":"2025-08-15T11:37:08","modified_gmt":"2025-08-15T15:37:08","slug":"insurance","status":"publish","type":"page","link":"https:\/\/legacymedadvisors.ca\/fr\/about\/insurance\/","title":{"rendered":"Assurance"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#F9F8F6″ locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” min_height=”150px” min_height_tablet=”0px” min_height_phone=”0px” min_height_last_edited=”on|phone” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}” custom_css_main_element_last_edited=”on|tablet” custom_css_main_element_tablet=”margin-bottom: 0;” custom_css_main_element_phone=”margin-bottom: 0;”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” header_text_color=”#83754E” global_colors_info=”{}”]<\/p>\n

Insurance<\/h1>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row make_equal=”on” disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” positioning=”absolute” position_origin_a=”top_right” horizontal_offset=”5%” width=”45%” max_width=”100%” height=”100%” custom_css_free_form=”selector.et_pb_row {|| clip-path: polygon(150px 0, 100% 0, calc(100% – 150px) 100%, 0 100%);||}” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#09131E” background_image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/corporate-insurance-for-doctors-and-dentists_1.jpg” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” disabled_on=”off|off|on” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_fullwidth_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/corporate-insurance-for-doctors-and-dentists_1.jpg” alt=”why doctors, dentists, and business owners incorporate in Canada” title_text=”corporate-insurance-for-doctors-and-dentists_1″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_fullwidth_image][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#192D43″ locked=”off” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}” custom_css_main_element_last_edited=”on|tablet” custom_css_main_element_tablet=”margin-bottom: 0;” custom_css_main_element_phone=”margin-bottom: 0;”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” background_layout=”dark” max_width=”1500px” global_colors_info=”{}”]<\/p>\n

Corporately owned whole life insurance is a popular tool used by incorporated medical professionals and business owners in Canada to manage tax, estate, and retirement planning.<\/h2>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||60px|||” custom_padding_tablet=”||8px||false|false” custom_padding_phone=”||8px||false|false” background_color_tablet=”#F9F8F6″ background_last_edited=”on|tablet” background_enable_color_tablet=”on” global_colors_info=”{}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”a0005789-3392-4f16-a59f-7318aa06f8c3″ global_colors_info=”{}”]<\/p>\n

Here are the key benefits<\/strong> of using a whole life policy owned by a corporation:<\/h3>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

1. Tax-Advantaged Growth<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||||false|false” global_colors_info=”{}”]<\/p>\n

The cash value<\/strong> of a whole life policy grows tax-sheltered<\/strong> within the policy.<\/p>\n

This allows the corporation to grow passive assets without triggering annual taxes on investment income, which normally faces high corporate tax rates<\/strong>.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/06\/tax-advantaged-growth_1.jpg” alt=”Tax-Advantaged Growth” _builder_version=”4.27.4″ _module_preset=”c3e842d0-6822-4df3-9d81-ad5c702a4959″ module_alignment=”center” locked=”off” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” background_image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/04\/dcotors_footer-image_1.jpg” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

2. Efficient Use of After-Tax Corporate Dollars<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ max_width=”450px” custom_margin=”||||false|false” global_colors_info=”{}”]<\/p>\n

Corporations pay a lower tax rate<\/strong> than individuals, especially on active business income (typically 12%\u201315%).<\/p>\n

Using corporate dollars to fund premiums is more tax-efficient<\/strong> than paying premiums with personally taxed income.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#192D43″ custom_padding=”50px|5%|50px|5%|false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” background_layout=”dark” global_colors_info=”{}”]<\/p>\n

Example:<\/h4>\n

[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” background_layout=”dark” global_colors_info=”{}”]<\/p>\n

To pay a $10,000 premium personally, you might need $18,000+ in gross income. Through the corporation, you may only need ~$11,500 in pre-tax income (depending on rates).<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

3. Estate Planning with Capital Dividend Account (CDA)<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||||false|false” global_colors_info=”{}”]<\/p>\n

Upon death, the death benefit<\/strong> (minus adjusted cost basis) is credited to the Capital Dividend Account (CDA)<\/strong>.<\/p>\n

The CDA allows tax-free distribution<\/strong> of death benefit proceeds to shareholders or beneficiaries.<\/p>\n

This creates a tax-efficient way to pass on wealth<\/strong> to heirs.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” max_width=”350px” max_width_tablet=”100%” max_width_phone=”100%” max_width_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

4. Access to Cash Value<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||10px||false|false” global_colors_info=”{}”]<\/p>\n

The policy\u2019s cash value<\/strong> can be accessed during the insured\u2019s lifetime through:<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”40px||||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”|||5%|false|false” custom_padding_tablet=”|||2%|false|false” custom_padding_phone=”|||2%|false|false” custom_padding_last_edited=”on|tablet” border_width_left=”3px” border_color_left=”#FFFFFF” global_colors_info=”{}”][et_pb_blurb title=”Policy loans” image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/icon_loan.png” alt=”Income splitting with spouse or adult child – icon by Good Ware ” _builder_version=”4.27.4″ _module_preset=”7e279775-e401-4d37-abed-2aca3e8645fc” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Withdrawals” image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/icon_losses.png” alt=”Non-voting shares – icon by Good Ware” _builder_version=”4.27.4″ _module_preset=”7e279775-e401-4d37-abed-2aca3e8645fc” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=” Collateral loans ” image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/icon_bank.png” alt=”Estate planning – icon by Good Ware” _builder_version=”4.27.4″ _module_preset=”7e279775-e401-4d37-abed-2aca3e8645fc” custom_margin=”||0px||false|false” locked=”off” global_colors_info=”{}”]<\/p>\n

(borrowing from a bank using the policy as collateral)<\/p>\n

[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ max_width=”700px” custom_margin=”50px||||false|false” global_colors_info=”{}”]<\/p>\n

Funds accessed this way can be used for retirement, reinvestment, or emergencies, with minimal or deferred tax consequences.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” max_width=”350px” global_colors_info=”{}”]<\/p>\n

5. Creditor Protection<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||10px||false|false” global_colors_info=”{}”]<\/p>\n

In many cases, insurance policies enjoy creditor protection<\/strong>, especially if a family member is a named beneficiary.<\/p>\n

This can help safeguard part of your corporate assets in the event of a lawsuit or business failure.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/06\/creditor-protection_1.jpg” alt=”Creditor Protection” _builder_version=”4.27.4″ _module_preset=”c3e842d0-6822-4df3-9d81-ad5c702a4959″ module_alignment=”center” locked=”off” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

6. Supplemental Retirement Income<\/h2>\n

[\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||10px||false|false” global_colors_info=”{}”]<\/p>\n

You can use the cash value<\/strong> as a source of retirement income<\/strong>, especially via a collateral loan strategy<\/strong>, where:<\/p>\n

[\/et_pb_text][et_pb_text module_class=”ul-list-plus-dividers light full” _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”30px||||false|false” locked=”off” global_colors_info=”{}”]<\/p>\n

    \n
  • The bank lends you money based on the policy\u2019s value.<\/li>\n
  • The death benefit repays the loan when you pass away.<\/li>\n
  • This provides tax-efficient retirement income<\/strong> without liquidating other investments.<\/li>\n<\/ul>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” disabled_on=”off|off|on” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_fullwidth_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/diversification-of-investments_1.jpg” alt=”Lifetime capital gains exemption” title_text=”diversification-of-investments_1″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_fullwidth_image][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

    7. Diversification of Corporate Investments<\/h2>\n

    [\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}” custom_css_main_element_last_edited=”on|tablet” custom_css_main_element_tablet=”margin-bottom: 0;” custom_css_main_element_phone=”margin-bottom: 0;”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ global_colors_info=”{}”]<\/p>\n

    Many corporations accumulate passive investment income<\/strong> (stocks, bonds, real estate), which can impact the small business tax rate once it exceeds $50,000\/year.<\/p>\n

    Whole life insurance does not count<\/strong> toward this threshold, making it an attractive way to diversify corporate assets<\/strong> without affecting small business tax eligibility.<\/p>\n

    [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/diversification-of-investments_1.jpg” alt=”Diversification of Corporate Investments” _builder_version=”4.27.4″ _module_preset=”c3e842d0-6822-4df3-9d81-ad5c702a4959″ module_alignment=”center” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”f2ce54e4-be8b-46e9-bcf6-b881f79bd6fa” global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.27.4″ _module_preset=”fad0d7d3-f200-40ec-81f4-558e167d0575″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” position_origin_f=”center_left” global_colors_info=”{}”]<\/p>\n

    8. Predictable and Stable Returns<\/h2>\n

    [\/et_pb_text][et_pb_divider _builder_version=”4.27.4″ _module_preset=”8126410f-8a8b-4667-90fa-215077f451e1″ custom_margin=”40px||0px||false|false” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,2_3″ make_equal=”on” module_class=”align-center” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||||false|false” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”c0bc2bcd-b079-4ee0-9b11-a24cfb1bd9b2″ custom_margin=”||10px||false|false” global_colors_info=”{}”]<\/p>\n

    Participating whole life policies offer guaranteed cash value<\/strong> growth and may receive annual dividends<\/strong>.<\/p>\n

    This offers stability compared to market-based investments, which can be volatile.<\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” disabled_on=”off|off|on” _builder_version=”4.27.4″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_fullwidth_image src=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/is-it-right-for-you_1.jpg” alt=”Lifetime capital gains exemption” title_text=”is-it-right-for-you_1″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_fullwidth_image][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” background_color=”#192D43″ background_enable_pattern_style=”on” background_pattern_style=”pinwheel” background_pattern_color=”rgba(9,19,30,0.07)” background_pattern_size=”custom” background_pattern_width=”25vw” global_colors_info=”{}”][et_pb_row disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” background_color=”#83754E” background_image=”https:\/\/legacymedadvisors.ca\/wp-content\/uploads\/2025\/05\/is-it-right-for-you_1.jpg” positioning=”absolute” position_origin_a=”top_right” width=”50%” max_width=”50%” height=”100%” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”||50px||false|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”|5%|||false|false” custom_padding_tablet=”|0%|||false|false” custom_padding_phone=”|0%|||false|false” custom_padding_last_edited=”on|tablet” custom_css_main_element=”margin-bottom: 0;” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” background_layout=”dark” header_2_text_align_tablet=”center” header_2_text_align_phone=”center” header_2_text_align_last_edited=”on|tablet” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n

    Is it right for you?<\/h2>\n

    [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”a0005789-3392-4f16-a59f-7318aa06f8c3″ header_3_text_color=”#AA9458″ background_layout=”dark” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” locked=”off” global_colors_info=”{}”]<\/p>\n

    Corporately owned whole life insurance is most beneficial for:<\/h3>\n

    [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=” Incorporated doctors, dentists and business owners.” _builder_version=”4.27.4″ _module_preset=”e2656584-e47d-40e0-9445-eb500b526b8f” background_layout=”dark” custom_margin=”||0px||false|false” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Those with excess retained earnings in the corporation.” _builder_version=”4.27.4″ _module_preset=”e2656584-e47d-40e0-9445-eb500b526b8f” background_layout=”dark” custom_margin=”||0px||false|false” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”30px||||false|false” custom_margin_tablet=”0px||||false|false” custom_margin_phone=”0px||||false|false” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Individuals interested in estate planning or tax-sheltered asset growth.” _builder_version=”4.27.4″ _module_preset=”e2656584-e47d-40e0-9445-eb500b526b8f” background_layout=”dark” custom_margin=”||0px||false|false” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_blurb title=”Professionals looking to complement retirement income.” _builder_version=”4.27.4″ _module_preset=”e2656584-e47d-40e0-9445-eb500b526b8f” background_layout=”dark” custom_margin=”||0px||false|false” text_orientation_tablet=”center” text_orientation_phone=”center” text_orientation_last_edited=”on|tablet” locked=”off” global_colors_info=”{}”][\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”|5%|||false|false” custom_padding_tablet=”|0%|||false|false” custom_padding_phone=”|0%|||false|false” custom_padding_last_edited=”on|tablet” custom_css_main_element=”margin-bottom: 0;” global_colors_info=”{}”][et_pb_button button_text=”Get in touch” button_alignment_tablet=”center” button_alignment_phone=”center” button_alignment_last_edited=”on|tablet” _builder_version=”4.27.4″ _module_preset=”79517e5e-04aa-428c-97ab-474afd56a006″ custom_margin=”80px||||false|false” custom_margin_tablet=”30px||||false|false” custom_margin_phone=”30px||||false|false” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_2″ disabled_on=”on|on|off” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”50px||50px||false|false” hover_enabled=”0″ sticky_enabled=”0″ locked=”off”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” theme_builder_area=”post_content”][et_pb_column _builder_version=”4.27.4″ _module_preset=”default” type=”4_4″ theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.4″ _module_preset=”254c1167-b58d-414c-aa76-12e4a7885e7e” theme_builder_area=”post_content” hover_enabled=”0″ sticky_enabled=”0″]<\/p>\n

    This article is provided for general informational purposes only and does not constitute financial, tax, or legal advice. Corporately owned whole life insurance involves complex planning considerations and may have significant tax and legal implications.<\/p>\n

    We are not tax advisors, and we recommend readers to consult with a qualified tax professional to assess whether this strategy is appropriate for their specific corporate and personal circumstances.<\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

    InsuranceCorporately owned whole life insurance is a popular tool used by incorporated medical professionals and business owners in Canada to manage tax, estate, and retirement planning.Here are the key benefits of using a whole life policy owned by a corporation:1. Tax-Advantaged GrowthThe cash value of a whole life policy grows tax-sheltered within the policy. This allows the corporation to grow passive assets without triggering annual taxes on investment income, which normally faces high corporate tax rates.2. Efficient Use of After-Tax Corporate DollarsCorporations pay a lower tax rate than individuals, especially on active business income (typically 12%\u201315%). Using corporate dollars to fund premiums is more tax-efficient than paying premiums with personally taxed income.Example:To pay a $10,000 premium personally, you might need $18,000+ in gross income. Through the corporation, you may only need ~$11,500 in pre-tax income (depending on rates).3. Estate Planning with Capital Dividend Account (CDA)Upon death, the death benefit (minus adjusted cost basis) is credited to the Capital Dividend Account (CDA). The CDA allows tax-free distribution of death benefit proceeds to shareholders or beneficiaries. This creates a tax-efficient way to pass on wealth to heirs.4. Access to Cash ValueThe policy\u2019s cash value can be accessed during the insured\u2019s lifetime through:(borrowing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":106,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-615","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\nInsurance | LegacyMED Advisors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legacymedadvisors.ca\/fr\/about\/insurance\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Insurance | LegacyMED Advisors\" \/>\n<meta property=\"og:description\" content=\"InsuranceCorporately owned whole life insurance is a popular tool used by incorporated medical professionals and business owners in Canada to manage tax, estate, and retirement planning.Here are the key benefits of using a whole life policy owned by a corporation:1. Tax-Advantaged GrowthThe cash value of a whole life policy grows tax-sheltered within the policy. This allows the corporation to grow passive assets without triggering annual taxes on investment income, which normally faces high corporate tax rates.2. Efficient Use of After-Tax Corporate DollarsCorporations pay a lower tax rate than individuals, especially on active business income (typically 12%\u201315%). Using corporate dollars to fund premiums is more tax-efficient than paying premiums with personally taxed income.Example:To pay a $10,000 premium personally, you might need $18,000+ in gross income. Through the corporation, you may only need ~$11,500 in pre-tax income (depending on rates).3. Estate Planning with Capital Dividend Account (CDA)Upon death, the death benefit (minus adjusted cost basis) is credited to the Capital Dividend Account (CDA). The CDA allows tax-free distribution of death benefit proceeds to shareholders or beneficiaries. 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Tax-Advantaged GrowthThe cash value of a whole life policy grows tax-sheltered within the policy. This allows the corporation to grow passive assets without triggering annual taxes on investment income, which normally faces high corporate tax rates.2. Efficient Use of After-Tax Corporate DollarsCorporations pay a lower tax rate than individuals, especially on active business income (typically 12%\u201315%). Using corporate dollars to fund premiums is more tax-efficient than paying premiums with personally taxed income.Example:To pay a $10,000 premium personally, you might need $18,000+ in gross income. Through the corporation, you may only need ~$11,500 in pre-tax income (depending on rates).3. Estate Planning with Capital Dividend Account (CDA)Upon death, the death benefit (minus adjusted cost basis) is credited to the Capital Dividend Account (CDA). The CDA allows tax-free distribution of death benefit proceeds to shareholders or beneficiaries. 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