As a small business owner, a significant part of your wealth may be tied up in your company. Even though you have maximized contributions to your RRSP or pension plan, you would like to have more flexibility and choice regarding your retirement lifestyle. In addition, you and your corporation need permanent life insurance protection. You are looking for a financial planning strategy that will address both your current need for insurance and your future need for flexibility when you retire.
An option to consider – the Corporate Insured Retirement Program with Corporate Borrowing
With this financial planning strategy, your corporation deposits funds into a permanent life insurance policy in excess of the amount required to cover the insurance and other policy costs. In the future, your corporation assigns the policy to Manulife Bank as collateral for a loan. This loan may be used for things such as paying you a dividend. By having your corporation purchase the life insurance policy and use it in this manner, you address your needs for permanent life insurance protection today and flexibility at retirement.