Less tax on extra money
It grows tax-free, and it does not count as company investment income.
Our Main Plan
Corporate Insured Retirement Program (IRP)
Turn extra company money into tax-free retirement cash. Your company buys life insurance on you. It grows tax-free. When you retire, you borrow from it, tax-free.
How It Works
How an insured retirement plan works
It uses corporate-owned life insurance.
Extra cash
From your company.
Life insurance policy
Your company buys it.
Tax-free growth
No tax each year.
Retirement loan
You borrow against it.
Your family
Most of it goes to them tax-free.
Why Owners Like It
What it does for you
Tax-free cash in retirement
Borrow from your policy to add to your retirement income.
More for your family
Most of the payout reaches your family tax-free, through the capital dividend account.
Is It Right for You?
This plan can fit you if
- Your company has extra moneyMoney it won't need for 10 years or more
- You need life insurance anywayFor your family or your business
- Your RRSP and TFSA are full
- You are in good healthYou need to qualify for insurance
Good to know
- The loan has interest, and rates can go up.
- The bank sets limits and can ask for more security.
- Policy dividends are not guaranteed.
- Your accountant checks the plan before you start.
Questions
Insured retirement program questions
No, when the plan is set up the right way. A loan is not income, so it is not taxed. The loan is paid back from the policy when you pass away.
The loan grows faster, so there is less left for your family. We test your plan with higher rates before you start.
Yes, if the loan gets too close to what the policy is worth. A good plan leaves room so this does not happen.
It is a special tax account inside your company. When a company-owned life insurance policy pays out, most of the money goes into it. That money can then go to your family tax-free.
It is life insurance your company owns and pays for, on your life. In an insured retirement program, it is a whole life policy that builds cash value you can borrow against.
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