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When the company owns and is the beneficiary of the policy, the death benefit received, less the policy's adjusted cost basis, is generally added to the capital dividend account (CDA). The company can then pay that amount to its shareholders as a capital dividend, generally tax-free. The rules are specific: Alexandre works with your accountant to choose the right structure.

Unlike employees, business owners generally don't have automatic access to employment insurance sickness benefits. If your income comes from your company, a prolonged disability can put the business at risk. Disability insurance replaces part of your income, as set out in the contract. The tax treatment of the premium and the benefits depends on who pays the premium and on the structure; confirm it with your accountant.

A shareholder agreement defines what happens to a shareholder's shares in case of death, disability or departure. Without adequate funding, surviving shareholders may be forced to accept heirs as partners or sell company assets to buy back the shares. Corporate life insurance can fund that buyback.

It depends on the structure. If you pay the premium on an individual policy yourself, it is generally not deductible, and the benefits are generally non-taxable. If the company pays the premium, other rules apply: the premium may be a taxable benefit for you, and the benefits may become taxable. The tax treatment depends on your situation; Alexandre compares the scenarios with you, and your accountant confirms them.

Maybe, but cash is usually needed to run operations. Using it to buy back shares leaves the business weakened at the worst time. Corporate life insurance is a predictable monthly cost for capital paid on death, as set out in the contract.