Business-owned life insurance
Help protect your business
Life insurance can help protect your business and get more out of your company’s assets.

Cover debt
Help your business partner pay for outstanding loans when you die.
Plan ahead
Prepare a partner buy out if you or your partner die.
Diversify your assets
Potential growth as well as risk and tax management benefits.
What is life insurance for business owners?
As a business owner you have options: your life insurance policy can be personally or corporately owned.
There are tax advantages to a business-owned policy. It provides a one-time, tax-free payout for your business if you, your business partner or key employees die.
Life insurance isn’t just a way to help protect your business, it also helps diversify your assets. You also may be able to access the policy’s value.
What are the types of life insurance?
There are two main types of life insurance for business owners: term life insurance and permanent life insurance.
Depending on your coverage needs, term life insurance and permanent life insurance can be important parts of your business plan now and in the future.
Term life insurance | Permanent life insurance | |
---|---|---|
When do you need it? | Temporary protection | Long-term protection |
Needs it can meet |
|
|
How long does it last? | Specific period | Lifetime protection |
Cost | Typically the most affordable type of insurance |
Usually more expensive than term life insurance |
Benefits |
|
|
Savings component | No | Yes |
View term life insurance | View permanent life insurance |
How can you use life insurance for your business?
Life insurance can be so much more than protection. Here are some ways that life insurance can help:
Tax-free growth
Life insurance may provide access to cash that your corporation can use if needed.
Fund a buyout agreement
Insurance payout can help buy your partners shares or vice versa when someone dies.
Protect your key people
Use funds to pay debts and expenses to help keep the business going while you find and train a suitable replacement.
Grow your company’s net worth
Diversify your portfolio and reduce tax on passive assets.
Succession planning
Fund your transition plan whether you want to sell your business or pass it along to family.
When do you need it?
Life insurance can be key to help keeping your business running smoothly, whether you’ve just started out or you’re looking for long-term protection.
Just getting started
Term life insurance provides temporary protection for your new business. It’s not permanent coverage, so you’re protected for a set period when you need it most.
Continue your growth
Help ensure your business is protected now and in the years to come, with permanent life insurance.
Close to retirement
If you’re thinking about retiring, ensuring a smooth exit strategy is an important part of your plan. Life insurance can help you sell your business or pass it on to your family.