Using life insurance to leave your kids an inheritance

A couple in their late fifties, with a profitable Ontario business and registered accounts already topped up, want to pass more of their wealth to their children without handing a big slice to the tax collector along the way. The question they raise is whether permanent life insurance, held inside a corporation, belongs in that plan. Allan walks through how a corporately owned policy can shelter savings that would otherwise be taxed heavily inside the company, and how the eventual death benefit comes out tax-free to fund the estate. He is candid that this suits some situations and not others: it leans toward more conservative money, it carries real complexity, and it is not a do-it-yourself project. The piece is most useful for incorporated business owners weighing how to move retained earnings to the next generation.