As you may be aware life insurance can be used by individuals to cover debts, funeral expenses and provide financial security to your family after your death. As a business owner life insurance can also be purchased corporately and be used by your business for a variety of issues that may arise upon your death. Such things as paying off corporate debt and buying out shareholder’s estates.
A corporate life insurance policy names the corporation as a beneficiary allowing the corporation to pay the premiums and collect the proceeds upon the death of the insured. The premiums may not be deductible but they can be financed by corporate dollars, which is better than using after-tax personal dollars.
It’s important to ensure that any corporate owned insurance policy names the company as the beneficiary and policy owner, and names the shareholder as the covered person.
There are many benefits and flexible planning options when purchasing and using life insurance through your private corporation. With that can come a number of additional complexities to consider. You should always consult the appropriate advisors to ensure the planning is done correctly.
Contact one of our Benefits Specialists today and let’s get working with you! Email us at better@hubbardinsurance.com or call 905.696.9090 where you’ll be “Well Advised. Well ProtectedTM.”
Alternatively fill out the Get a Quote form and we will contact you as soon as possible.
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