Corporate-Owned Life Insurance in Mississauga, ON for Incorporated Business Owners
Serving incorporated professionals, entrepreneurs, and family-run businesses across Mississauga, Brampton, Oakville, and the western GTA.
Mississauga has one of Canada's largest concentrations of incorporated business owners — head offices, professional corporations, logistics companies, and family-owned manufacturers. Like the rest of Ontario, Mississauga business owners face a 53.53% top marginal personal rate, corporate passive-income taxation that varies by income type, and Ontario's Estate Administration Tax on estates that require a certificate. Corporate-owned life insurance, the insured retirement program, and the individual pension plan are worth reviewing with your accountant as part of a broader plan for retained earnings.
Mississauga & Ontario's Tax Landscape in 2026
Mississauga businesses face Ontario's full tax stack: an 11.5% general provincial corporate rate (with the small business rate decreasing from 3.2% to 2.2% effective July 1, 2026), a 53.53% top personal rate, passive investment income taxed by type with the AAII grind applying between $50,000 and $150,000, and Estate Administration Tax of $15 per $1,000 above the first $50,000 of estate value when an estate certificate is required. Combined with the 50% capital gains inclusion rate, these factors are worth reviewing with your accountant if your corporation holds significant value.
- ON Top Marginal Rate: 53.53%
- ON General Corporate Rate: 11.5% provincial
- AAII Grind Range: $50K–$150K
- ON Small Business Rate: 3.2%→2.2% (Jul 2026)
- ON Estate Admin Tax: $15/$1,000 over $50K
- Capital Gains Inclusion: 50%
How Corporate-Owned Life Insurance Works for Mississauga Business Owners
A Mississauga corporation purchases a permanent life insurance policy on the owner-shareholder and funds it from retained corporate earnings. Growth inside a qualifying exempt policy generally accumulates without annual accrual taxation. At death, the corporation generally receives the death benefit tax-free; the portion above the adjusted cost basis can be credited to the Capital Dividend Account; and shareholders can receive a capital dividend subject to a valid election. Because the proceeds are paid to the corporation rather than the personal estate, they are not themselves personal estate assets for Ontario Estate Administration Tax purposes — though EAT can still apply to the shareholder's shares and other personal estate assets.
Strategies for Mississauga business owners
- Corporate-Owned Life Insurance — Review whether redirecting a portion of Mississauga corporate retained earnings into a tax-exempt policy fits your plan, with growth generally accumulating without annual accrual taxation and death benefit proceeds potentially flowing through the Capital Dividend Account.
- Insured Retirement Program — Use your corporate-owned policy as collateral for a properly structured retirement loan, generally not treated as income when received, subject to lender terms and your tax facts — an option worth comparing to RRIF withdrawals.
- Individual Pension Plan — Mississauga business owners over 40 may be able to shelter more than the RRSP limit in an individual pension plan, fully deductible by the corporation once eligibility criteria are met.
- Estate Freeze Planning — Lock in today's value of your Mississauga business, and plan to fund a resulting future tax liability with corporate-owned life insurance.
Who we serve in Mississauga
- Logistics & Manufacturing — Mississauga's logistics, distribution, and manufacturing firms often accumulate retained earnings. Corporate-owned life insurance is one option worth reviewing alongside buy-sell agreements between owners.
- Doctors & Healthcare Professionals — Mississauga physicians and specialists with professional corporations often review corporate-owned life insurance and the individual pension plan for retirement planning beyond RRSP limits.
- Lawyers & Accountants — Mississauga professional services partners often use corporate-owned life insurance to help fund buy-sell agreements and manage the AAII grind on surplus earnings.
- Real Estate Investors & Realtors — GTA realtors and real estate investors holding properties in corporations can face significant capital gains exposure. Corporate-owned life insurance and estate freezes are commonly reviewed together.
Frequently asked questions
Does GOALD serve incorporated business owners in Mississauga, ON?
Yes. Goald & Co works with incorporated business owners across Mississauga and the Greater Toronto Area on corporate-owned life insurance, the insured retirement program, and related tax-planning strategies, coordinating with your accountant to keep any strategy aligned with CRA rules.
Is corporately owned life insurance taxable in Ontario?
Premiums paid by an Ontario corporation for a non-group policy insuring an individual are generally not subject to Ontario Retail Sales Tax and are generally not tax-deductible. The death benefit is generally received by the corporation tax-free, and the portion above the adjusted cost basis can be credited to the Capital Dividend Account for a capital dividend, subject to a valid election.
How much does corporate-owned life insurance cost for a Mississauga business?
Premium levels vary by corporation and should be modeled with a current carrier illustration based on retained earnings, desired death benefit, and objectives — there is no single premium range that applies to every business.
How does corporate-owned life insurance relate to Ontario's Estate Administration Tax?
When the corporation owns the policy, the death benefit is generally paid directly to the corporation rather than included in the shareholder's personal estate, so it is not itself subject to EAT. EAT still applies to any personal estate assets — including the shares themselves — if an estate certificate is required, at $15 per $1,000 above the first $50,000 of value.
How should a Mississauga business owner choose an advisor for corporate insurance planning?
Look for a licensed Ontario advisor who works across multiple carriers, is transparent about compensation, is willing to coordinate with your accountant and lawyer, and can provide comparative illustrations rather than a single projected outcome.
Sources and tax notes
- Ontario Retail Sales Tax Act
- CRA T2 guide — investment income (Chapter 4)
- Small business deduction — passive investment income rules
- Income Tax Folio S3-F2-C1 — Capital Dividends
- CRA — Capital Dividend Account
- Ontario Estate Administration Tax
- Alberta court fees (surrogate grant fees)
- Alberta corporate tax rates
- CRA — What's new for corporations
This page is general information only and is not tax or legal advice. Tax rates, thresholds, and rules depend on your specific facts and the applicable tax year, and are subject to change. Coordinate any strategy with your own accountant and lawyer before proceeding. Policy values referenced are illustrated, not guaranteed, unless a specific value is guaranteed in the insurance contract.
Last reviewed: August 2026