Life and Health Insurance

2017 Tax Changes: What happens to corporate-owned life insurance?

One of the key areas impacted by the new tax rules is corporate-owned life insurance. It is often advantageous for corporations to own an insurance contract governed under the current tax rules, meaning the rules in place before January 1, 2017.

Also, if the main objective is to distribute tax-free dividends to shareholders via the CDA, a policy change that could cause a loss of grandfathering should probably be avoided.

What happens when a corporation owns an insurance contract?

The fact remains that corporate-owned insurance contracts are still tax efficient, even considering the new tax rules.

Contact you SSQ representative for more information.