Life insurance planning for business owners


Life insurance can help protect the wealth your business creates. Learn about some of the many tax and estate-planning benefits insurance may provide.

As a successful business owner, we know you’ve worked hard to create wealth for you and your family. Life insurance can protect that wealth from depletion from taxes, and other life contingencies, and can help with the flow of intergenerational wealth. We see many successful business owners re-allocating a portion of their corporate capital into permanent life insurance, which provides numerous tax and estate planning benefits.

With life insurance, the deposits grow, and the death benefits are paid out tax free. There is liquidity created at death to fund taxes. Where you have business partners, it can be a cost effective solution to fund a buy-sell agreement. And it can be used to equalize gifts to children not involved in the family business.

Where life insurance is owned through a corporation, it allows most, if not all, of the death benefit to be paid out of the corporation’s capital dividend account as a tax free dividend.

And finally, it can be considered as an alternative asset class with attractive returns and low volatility. Speak to your RBC Wealth Management Advisor to discuss how life insurance fits into your overall wealth plan.

This video and its content is provided by RBC Wealth Management for the general guidance and benefit of RBC Dominion Securities Inc. (“RBC DS”) and RBC Phillips, Hager & North Investment Counsel Inc. (“PH&N IC”), and is intended for information purposes only. The term “RBC Wealth Management Advisor” means an RBC DS Investment advisor or a PH&N investment counsellor and does not include advisors with Royal Trust or Private Banking.

The comments contained in this video are general in nature, and do not constitute legal, investment, trust, estate, accounting or tax advice. Insurance products are offered through RBC Wealth Management Financial Services Inc. (“RBC WMFS”), a subsidiary of RBC DS.* RBC WMFS is licensed as a financial services firm in the province of Quebec. RBC DS, RBC WMFS and Royal Bank of Canada are separate corporate entities which are affiliated. *Member – Canadian Investor Protection Fund. RBC Dominion Securities Inc. and RBC WMFS are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. Please visit for further information on the entities that are member companies of RBC Wealth Management. Trademark(s) of Royal Bank of Canada. Used under license. © 2023 Royal Bank of Canada. All rights reserved.