Tax Benefits of Life Insurance in Your HoldCo.

Canadian Edition

Although this concept might have the same effect in other countries, this post is geared towards Canadians.

With recent changes in the Income Tax Act, the Tax benefit of having a Life Insurance Policy within your HoldCo is diminishing.  Unless you act NOW!  Any policy that is active before 2017 will be “grandfathered” into the current Tax Act.

There are three main reasons for having a life insurance policy within your HoldCo.  To help me explain these concepts to you, I have added YouTube videos of Allan Madan.  I find he has a simple, direct to the point explanation.

Please check out his youtube videos and website ( for more information.

  1. Cheaper to pay for premiums with HoldCo money than personal after tax money.

2. and 3. The payouts are less taxed through a corporation and investments through your policy are tax exempt.

The above is just a snap shot of the benefits of holding a policy within your corporation.  In order to be effective, your corporation and policy must be structured properly.  To accomplish this, talk to your Accountant and/or Financial specialist.  Our opinion on is just an opinion and we are not financial specialists.

If you have any experience or knowledge in this area, please share.  Your comments mean a lot to us.

(Picture of Canada Dollar Symbol Above obtained from Google Images. Originated from “Flash of Gold” Website)


Categories: Finance

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