Major Changes to Life Insurance Taxation are around the corner!
For small business owners, Corporate Owned Life Insurance is very attractive because the policy can be funded by the money inside the corporation, with a significant portion of the proceeds being paid directly to shareholders and beneficiaries tax free. These changes are being made by the CRA to address the fact that people are living longer. While Corporate owned Life Insurance is the primary focus of the increased taxation, many other policies and strategies will be affected. If you are, or have ever considered Corporate Owned Life Insurance, now would be the time to understand the options that are available to you.