FAQ
Answers to common questions about Corporate Insurance, CDA, and IFA strategies.
The main risks relate to interest rate changes, loan management, and changing collateral requirements. The underlying policy remains a stable, long-term asset designed for conservative growth.
Yes. The corporation may use policy loans, withdrawals, or bank collateral loans without a formal IFA arrangement.
No. Deductibility depends on how borrowed funds are used. They must be tied to income-producing activities and should be confirmed with your tax advisor.
Only upon the insured's passing. This is when the corporation can distribute tax-free capital dividends to shareholders, subject to proper elections and CRA filing.
Policies include guaranteed values, but dividends are not guaranteed. However, Canadian insurers generally have strong, stable long-term dividend histories.
Yes. This is the standard and often most tax-efficient structure for business owners with retained earnings.
Yes. Standard underwriting includes reviewing financial statements, tax returns, and corporate banking history.
Yes. Corporate-owned policies offer flexibility through restructuring, buy-sell agreements, or estate planning adjustments. Any changes should be coordinated with your legal and tax advisors.