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.
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