A short YouTube presentation by Jayson Lowe advocating the use of dividend-paying, participating whole life insurance policies for Canadian business owners. The speaker emphasizes corporate tax advantages, control over access and use of capital (avoiding personal guarantees and bank gatekeepers), and intergenerational tax benefits when ownership transfers.
So why do business owners embrace this process of becoming your own banker and purchase dividend paying, participating whole life insurance policies? Corporately, first and foremost, it's the tax advantages that are represented by doing that. These contracts are not captured by the passive investment income rules that were introduced and can severely penalize a business owner who's established and has surplus capital that must reside somewhere. So we have significant tax advantages not only while the business owner is alive, but when the business owner passes away, those tax advantages shift to the surviving shareholders of the company. But more importantly, the business owner wants control. Control over access to capital, control over the use and liquidity of capital without having to provide personal guarantees, going through toll takers and gatekeepers and nosy bankers who want to know why they need the use of that money. And so really, this is an instrument that creates a growing pool of uninterrupted financial value. It enables the business owner to regain control and provide significant tax advantage. I haven't met a single established business owner yet who said I could really use more exposure to tax while I'm trying to grow my business and build something and create jobs and be the backbone of our Canadian economy. No. Corporate owners want less exposure to tax so they can create more jobs. They can reinvest capital back in their business. This process and this tool, dividend paying, participating whole life insurance, solves that problem.
