Question 1

What is corporate-owned life insurance (COLI)?

Accepted Answer

Corporate-owned life insurance is a permanent life insurance policy purchased by a corporation. The cash value grows tax-sheltered, and the death benefit flows to the corporation tax-free through the Capital Dividend Account (CDA), then to shareholders tax-free.

Question 2

What is an Insured Retirement Program (IRP)?

Accepted Answer

An IRP uses a permanent life insurance policy as collateral for retirement loans. Instead of withdrawing money (which triggers tax), you borrow against the cash value tax-free. At death, the death benefit repays the loan and remaining proceeds go to family.

Question 3

What is an Individual Pension Plan (IPP)?

Accepted Answer

An IPP is a registered pension plan for incorporated business owners that allows significantly higher tax-deductible contributions than an RRSP — especially for those over 40. At age 55, an IPP can allow contributions of $85,000+ vs. RRSP's $31,560 limit.

Question 4

Is this only for large corporations?

Accepted Answer

Not at all. If you have a corporation with retained earnings, or if you're an incorporated professional earning a good income, these strategies likely apply to you. We work with businesses of all sizes — the common thread is that our clients want to keep more of what they've earned.

Question 5

Why isn't everyone doing this?

Accepted Answer

Everyone who knows about it, is. These are some of Canada's best-kept secrets in financial planning. Most accountants and financial advisors aren't aware of them, or they don't specialize in this area.

Question 6

How much can I save in taxes with these strategies?

Accepted Answer

Depending on your situation, COLI can save $800K+, IRP can save $600K+, IPP can save $400K+ over time, and estate freezes with insurance can save $1M+ in estate taxes. Every situation is different — we show you the real numbers in your first meeting.