David SeemungalI help people make clearer decisions today, before life forces harder ones later.

CORPORATE-OWNED INSURANCE · ONTARIO

Who owns the coverage?
Where does the money go?

A policy owned by your company may help fund a buyout, protect the business or support an estate plan. First decide who needs the money, for what purpose and when.

See how the options differ and what we could review together.

Explore the situations

No details needed. Start with the question on your mind.

THE STARTING POINT

Corporate-owned insurance can be considered for a business or shareholder need. Ownership, beneficiaries, funding and tax treatment depend on the circumstances. [1]

01

The need

What problem is the coverage intended to address?

02

The structure

Who owns the policy and who receives the proceeds?

03

The coordination

How does it fit with agreements and professional advice?

A FEW MINUTES. BETTER QUESTIONS.

Start with a situation.

Choose a situation and save the questions you would like to discuss. These prompts are general information, not individual advice.

AN ILLUSTRATIVE SITUATION

One policy is expected to do several jobs.

Two partners bought life insurance years ago. They now expect the same proceeds to repay a lender, fund a share buyout and support the surviving business.

WHAT TO COMPARE

List each obligation and who is entitled to payment. Compare the proceeds left after lender assignments with the buyout and operating needs. The same dollar cannot fund every obligation at once.

Illustration only. Your circumstances and contract terms matter. [1]

What would you like to discuss?

Choose the questions that fit.

Compare what each option does.

Open an option to see where it may help and what to weigh.

01Term or permanent coverage

Term can suit a need for a defined period; permanent coverage may suit a lifelong need. Compare costs over the required period, renewal terms and guarantees, not just the first premium. [1]

02Corporate or personal ownership

Start with who needs the benefit. Compare payment flows, control and tax consequences with your advisors. Ownership changes can have consequences and should not be made casually. [1]

03Insurance or accessible savings

Insurance funds a covered event under a contract. Reserves and investments may fund spending while you are alive. Compare timing, flexibility, risk and costs before committing company cash. [1]

04One policy or separate purposes

A combined approach may be possible, but document priorities and avoid counting proceeds twice. Separate coverage can make purposes clearer; compare total costs and administration. [1]

A little more clarity.

Are company-paid life insurance premiums automatically deductible?

No. Do not assume a deduction simply because the company pays. Your accountant should assess the policy, purpose and applicable rules. [1]

Does a capital dividend account mean all proceeds go tax-free to my family?

No. The account is a tax calculation, not a separate bank account. Eligible net proceeds, the available balance, an election and the recipients’ circumstances need accounting review. [1]

Can I access policy cash values whenever I want?

Only under the policy’s terms and available values. Withdrawals, surrender or borrowing may create costs, tax consequences and changes to coverage. Review guarantees and non-guaranteed projections separately. [1]

A RELATED QUESTION

Would a change in ownership also require a funding plan?

Explore buy-sell funding

THE NEXT STEP

Does your policy still have a clear job?

Start with why the policy was bought and what has changed. I can review the coverage with you and flag ownership, agreement and tax questions for your lawyer and accountant.

Book a 30-minute introductory callSend one question on my website

Prefer to call? 416-716-4675 · david@davidseemungal.ca

Or prepare an email with your selected questions. No obligation to purchase.

David D. Seemungal, EPC

Senior Insurance & Investment Advisor
Elder Planning Counselor
VFG Financial Group

“I help people make clearer decisions today, before life forces harder ones later.”

WHAT WE CAN COVER

  • Understand your situation and what you want to protect.
  • Identify the questions and options worth reviewing.
  • Coordinate with your accountant, lawyer or specialist where appropriate.
36 years of experienceServing Ontario
A CLEARER CONVERSATION STARTS HERE

Start with what’s on your mind.

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