Need to reduce taxes?

Business owners with passive income from real estate or other investment classes may now be faced with higher overall taxes because of the introduction of the passive income rules that affect the small business tax rate.

There is a way to reduce taxes and safeguard wealth. Consider a corporately-owned participating whole life insurance plan. It is a flexible, dividend-paying policy that delivers living benefits. The net result is that you will lower the passive income inside the corporation, reducing tax and safeguarding wealth.

Top benefits for business owners

  1. Death benefit from insurance is tax free.

  2. During life the cash value accumulates -- tax sheltered.

  3. Flexible, ultra low-risk asset class.

  4. Access up to 100% of the cash value at any time.

  5. Leverage capital for ANY purpose.

Here are 4 questions Business owners & advisors should discuss:

Q1. What is the largest roadblock to accumulating wealth?

A1.  The answer: “Taxes”. However, there are asset classes that grow tax-sheltered inside a corporation.  Lower passive income results in lower taxes.

Q2. How can we lower investment risk and volatility below GICs and bonds?

A2: Some asset classes like Permanent Dividend Paying Whole Life will lower their risk and volatility below GICs and corporate bonds.  It may also increase the ROI after taxes by 2 to 4 times.   

Q3. Are there assets inside your OpCo or HoldCo that can be paid out/transferred to other shareholders or heirs on death tax-free?

A3. Consider permanent dividend paying Whole Life; as the death benefit is tax-free.

You may hold many different classes of assets in Real Estate, Stocks, Bonds, Private Placements, Universal Life Insurance, etc.  If you wanted to securitize any of these with a bank, they would only get a portion as a loan...

Q4. What asset class can be securitized up to 100% and usually at a preferred rate?

A4. Liquidity is very important in business and for business owners that have Whole Life Insurance, policies can potentially be used dollar for dollar without disturbing the policy by way of loan facilities which provides greater cash flow flexibility.

Learn more about how a whole life dividend-paying policy works for business owners with our FAQ’s. Or contact John or Ryan to set up a no-obligation call. Our objective is to create customized solutions with considerable benefits for business owners to support their goals including wealth preservation and tax savings.