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Business-owned permanent life insurance

Lifetime coverage for your life’s work

It can help protect your business for life while getting more from your company’s assets.

What is business-owned permanent life insurance?

As a business owner you have options: your life insurance policy can be personally or corporately owned.

In addition to providing a one-time, tax-free payout for your business if you, your business partner or key employees die, it can help you achieve more with your company’s investable assets.

Over time, your policy may build value, providing your business financial flexibility while you’re alive.  

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What types of permanent insurance are available for your business?

Participating and universal life offer lifetime coverage and tax-free cash growth, but they’re structured differently.

Participating life insurance

  • Guaranteed cash values
  • Guaranteed insurance payout
  • May receive a yearly dividend
  • Premiums stay the same
  • Flexibility when your business needs it 
View participating life insurance

Universal insurance

  • Guaranteed cash values on some policies
  • Guaranteed insurance payout
  • Choose your investment options
  • Generally less expensive than participating insurance
  • Flexibility in premium payments
View universal life insurance

Thinking more short term?

Term life insurance is a less expensive option that can help protect your business for a set period you choose. 

Learn more about how term life insurance can help your business.

What is the difference between universal and participating life insurance?

Universal and participating life insurance are the 2 forms of permanent protection for your business. Here’s how they compare: 

Participating life insurance

Common features

Universal life insurance

Guaranteed money grows inside your business’ policy

Lifetime insurance coverage

Manage your risk profile and choose investment options

Conservative asset management

Guaranteed premium options

Cost effective

Policyowner dividends

Guaranteed payout

Payment flexibility

Who can you protect with permanent life insurance for your business?

  • Your company

    Achieve more with your company’s investable assets.

  • Your business partners

    Provide funds to buy the other person’s share of the business.

What can you use participating life insurance for?

  • Need additional cash flow

    Life insurance may provide tax-free growth, subject to government limits, that your corporation can use if needed.

  • Fund a buy/sell 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.

  • Loan coverage

    Help cover outstanding business loans and debts.

  • Funds not needed for operations/reducing tax

    Permanent insurance can help diversify your portfolio and reduce tax on passive investments.