A speaker affirms that funding an infinite banking (high cash value life insurance) policy with corporate funds in Canada is possible and commonly done by business owners. The speaker highlights strategic advantages—primarily tax-exempt growth inside the policy which can help corporations avoid passive income rule impacts—and notes there are disadvantages requiring careful, personalized advice.
The answer is yes. There are strategic advantages to doing that. There are also some disadvantages. So whether that's the right path for someone to go has to be a very, very important conversation. It is extremely common. A lot of people in Canada, a lot of business owners do that. And in the current tax environment we live in, again, I'm not a tax advisor, but in the current, with the passive income rule changes and all these tax changes that have been brought forth in the current government, people that have money in corporations, they're looking for the, you know, the last bastion of where they can store their money without having to say goodbye to it. And this particular type of model insurance, high cash value insurance, is for all intents and purposes, that last resource place that you can go where you can have access to capital and not have to see it get taken away. It kind of gets away from those passive income rules in that the money in the policy, when it's in there, when it's growing, it grows tax exempt. So that is a huge, huge, huge advantage to corporations.
