Access it. Grow it. Pass it on — all tax-free.

Corporate-owned life insurance turns retained earnings into a tax-free growth engine — giving you predictable growth, flexible access to cash, and a clean, legal way to transfer wealth through the CDA.

What It Is?

Turn retained earnings into a tax-free growth engine. Fund a whole life policy with corporate
dollars for predictable growth, tax-free access, and full control to protect your business and
seize opportunities.

Learn More

Corporate-owned life insurance (COLI) is one of the most powerful, overlooked financial tools available to Canadian business owners. When structured properly, it doesn’t just protect—it creates a permanent tax advantage. The Capital Dividend Account (CDA) is a special notational account tracked by the CRA that allows your corporation to pay money to shareholders 100% tax-free. The cleanest way to generate CDA credit is through a corporate-owned whole life insurance policy. When your corporation funds the policy with retained earnings, you create a cycle of tax-free growth, tax-free access, and tax-free transfer—eliminating up to three or four layers of taxation that usually erode wealth.

Turn your retained earnings into a tax-free growth engine

By using corporate dollars to fund a whole life insurance policy, you get safe and predictable tax-free growth, full access to your money when needed, and control to protect your business while taking advantage of new opportunities.

Why It Matters

Most wealth drains away in taxes. CDA planning lets you keep more, access more, and pass on more—without stress.

Why It Matters

Most business owners are surprised at how much wealth disappears through tax:

Salary and dividends shrink wealth by triggering personal tax.
Stocks and real estate create stress and tax headaches.
RRSPs and TFSAs come with restrictions and deferred tax.

CDA planning wipes out multiple tax layers at once—while giving you flexibility, access, and control.

Who Benefits?

We provide tailored insurance solutions for businesses, families, and institutions.

Help Clients Keep 30–50% More

Differentiate yourself as a true wealth advisor. Show clients how to grow tax-free, access tax-free, and pass on tax-free with CDA planning.

Access More. Keep More.

If you own multiple clinics, pharmacies, or businesses, CDA strategies let you grow retained earnings tax-free, access cash for opportunities, and pass it on tax-free.

Build Supplemental Income

If your practice is your bread and butter, CDA strategies create tax-free supplemental income you can use anytime—while still passing wealth on tax-free.

Who We Serve. How We Deliver.

Discover who we serve and how we make insurance simple, transparent, and effective.

1. For Accountants

If you’re an accountant, this strategy helps you stand out from “tax filers” and position yourself as a true wealth advisor.

Show clients how to keep 30–50% more of their retained earnings.
Help them avoid a 43% tax hit when passing on wealth.
Attract and retain higher-value clients who want more than basic compliance.
Protect your reputation—clients without CDA planning often blame their accountant later.

➡️ CDA planning turns you into the advisor who maximizes client wealth, not just reports it.

2. For Multi-Location Business Owners (Doctors, Dentists, Pharmacists, Entrepreneurs)

If you own multiple clinics, pharmacies, or business locations, your corporation is building retained earnings every year—and the taxman is circling.

Tax savings are key: CDA strategies protect your retained earnings from being drained by tax.
Leverage your money twice: Use policy cash value to invest in opportunities like real estate, expansions, or acquisitions—without triggering tax.
Pass it on tax-free: When the time comes, millions can move to your family 100% tax- free.

➡️ For multi-location professionals, COLI isn’t just insurance—it’s the smartest way to protect wealth and use your capital as leverage.

3. For Single-Location Professionals (Doctors, Dentists, Pharmacists, Consultants)

If your practice is your bread and butter, supplemental income matters.

A corporate-owned whole life policy quietly grows tax-free in the background.
Later, it can provide supplemental income—extra funds you can tap into without triggering heavy taxes.
And what’s left passes to your family completely tax-free.

➡️ For single-location professionals, this creates flexibility, peace of mind, and a stronger financial cushion.

faqs

Most Popular Questions

Still wondering how CDA strategies really work? Explore the top questions every business owner asks.

FAQs

1. Can life insurance really build wealth—not just protect it?

Yes. With corporate-owned whole life insurance, your retained earnings grow tax-free inside the company. You can access that money at any time—tax-free—for needs or new opportunities. And when the time comes, you can pass it on to your family tax-free through the CDA. It’s the only tool that lets you grow, use, and transfer wealth tax-free—with full control.

2. What exactly is the Capital Dividend Account (CDA)?

The CDA is a special account tracked by the CRA that lets your corporation pay money to shareholders 100% tax-free. The only reliable way to create CDA credit is with a corporate- owned whole life insurance policy. When the policy pays out, the proceeds go into the CDA—and from there, they flow to your family without personal tax. It’s the legal door out of your corporation, tax-free.

3. Why is this the most tax-efficient tool for incorporated business owners?

Because it wipes out multiple layers of tax at once:

Buy with corporate dollars (already tax-deferred).
Grow tax-free inside the corporation.
Access funds tax-free while alive.
Pass them on tax-free at death.

➡️ One structure eliminates three or four levels of taxation.