The short answer.
- A broker is not an insurer. An independent broker holds contracts with several Canadian carriers and can compare designs; a captive agent sells one company's products.
- Corporate insurance is a tax-planning decision. The right broker understands the capital dividend account, passive income rules and how a policy fits your holding company structure.
- Most brokers are paid by carrier commission. Ask how they are paid and whether a recommendation changes that pay. A good broker answers plainly.
- Ask for comparisons, not one illustration. You should see alternatives, the guaranteed values, and what happens if dividend scales fall.
What a corporate insurance broker actually does.
For an incorporated owner, a broker's job is to work out whether insurance belongs in the corporation at all, then which design, which carrier, and who should own and benefit from the policy. That means reading your financial statements, understanding your share structure and talking to your accountant.
Execution matters too: underwriting for larger coverage amounts, collateral loan arrangements for an IFA or IRP, and annual reviews as the corporation's surplus changes.
Independent broker, captive agent or bank advisor?
A captive agent is tied to one insurer and can only offer that insurer's products. A bank advisor typically offers the bank's own insurer. An independent broker contracts with several carriers through a managing general agency.
None is automatically better, but for corporate planning the ability to compare participating whole life designs, universal life and term from several carriers usually produces a better fit and cleaner pricing.
Ten questions to ask before you sign anything.
- Which provinces are you licensed in, and can I check your licence with the regulator?
- How many carriers do you place corporate business with?
- How are you paid, and does your pay change depending on which design I choose?
- Will you speak directly with my accountant and lawyer?
- Can you show me guaranteed values next to illustrated values?
- What happens to this plan if the dividend scale drops by 1% or 2%?
- Should this policy be owned personally, by my operating company, or by my holding company, and why?
- How does this affect my capital dividend account and passive income?
- What are the alternatives if I do nothing or invest the same money?
- Who reviews this policy each year, and what triggers a change?
Warning signs of a sales-first pitch.
Be cautious if you only see one carrier's illustration, if the presentation focuses on a projected 'return' without guaranteed values, if nobody asks about your accountant, or if you feel pressure to fund before the structure is reviewed.
Also watch for advice that a policy is always better corporately or always better personally. The honest answer depends on creditor exposure, a possible sale of the business, family law and cash flow.
How Goald & Co works.
Goald & Co Financial is an independent corporate life insurance brokerage based in Vancouver, BC, licensed in British Columbia, Alberta, Ontario and Saskatchewan. We work with incorporated business owners and professionals, usually with $1M+ in revenue or meaningful retained earnings.
Our first conversation is 15 minutes, by phone or Zoom, to see whether a strategy applies. If it does not, we will tell you. Meet the team or see our Vancouver, Calgary and Toronto pages.
Frequently asked questions.
What is a corporate life insurance broker?
A licensed insurance advisor who holds contracts with several Canadian insurers and designs life insurance owned by a corporation, typically for tax-efficient estate funding, buy-sell agreements, key person coverage or retirement strategies such as the Insured Retirement Program.
How are corporate life insurance brokers paid in Canada?
Most are paid commission by the insurance company, built into the policy pricing, so there is usually no separate fee to the client. Some charge planning fees. Ask your broker to disclose how they are paid.
Who is a corporate life insurance broker in Vancouver?
Goald & Co Financial is an independent corporate life insurance brokerage based in Vancouver, BC, serving incorporated business owners and professionals across BC, Alberta, Ontario and Saskatchewan.
Should I use my accountant or an insurance broker?
Both. Accountants model the tax result and file returns; licensed insurance advisors design and place the policy. The best outcomes come when they work together.
Where to go deeper.
Primary sources cited in this guide
Disclaimer. This guide is general educational information published by Goald & Co Financial Inc. It is not tax, legal or accounting advice. Examples are illustrative composites, not real clients. Outcomes vary by province, corporation and shareholder facts and changes in law. Verify every figure with your CPA and legal counsel before acting.