Can my corporation pay for life insurance?

Yes — corporate-owned life insurance is a legitimate strategy. The corporation pays the premiums, the corporation is the owner and beneficiary, and the death benefit can be paid out tax-efficiently through the Capital Dividend Account. The specific tax treatment depends on your corporate structure and your province.

What is corporate-owned life insurance (COLI)?

COLI is a life insurance policy owned by your corporation rather than personally. It can serve as key person protection, estate planning, or a tax-sheltered asset on the corporate balance sheet. The death benefit, when paid as a capital dividend, is typically received by shareholders tax-free.

How does a PHSP work for a corporation?

Your corporation enters into a plan agreement with a third-party administrator. When you or your family incur eligible medical expenses, the corporation reimburses you. The reimbursement is a deductible business expense for the corporation and non-taxable income to you. Frank can set this up for free.

Do I need disability insurance if I pay myself dividends?

Yes — possibly more importantly than someone on salary. Most disability policies are based on pre-disability income, including dividends. But some carriers have stricter definitions. Frank specifically knows which carriers handle dividend-based compensation correctly and structures the policy to cover your actual income.

What is a buy-sell agreement and do I need one?

A buy-sell agreement is a legal contract between business partners that defines what happens to ownership interests if a partner dies, becomes disabled, or leaves. Without a funded buy-sell agreement, the surviving partner may inherit a co-owner relationship with a deceased partner's estate. Life and disability insurance fund the buyout.

FrankCoverAIC-Licensed Insurance Broker · Calgary, Alberta

(403) 536-6897

Incorporated Business Owners · Alberta

Insurance for Incorporated Business Owners in Alberta

Name: Frank Cover
Address: Calgary, AB, Calgary, AB, T2P, CA
Telephone: (403) 536-6897
Price range: $$

Your accountant set up your corporation to protect your income from tax. Frank protects your corporation from the things your accountant can't — disability, death, and diagnosis.

AIC Licensed · Alberta

Independent — 20+ Carriers

$0 Cost Unless Policy Placed

No Bank Affiliation

Frank Says

Your accountant set up your corporation to protect your income from tax. Frank protects your corporation from the things your accountant can't — disability, death, diagnosis. These aren't competing roles. They're complementary ones. Most successful incorporated professionals work with both.

Strategies Unique to Incorporated Owners

Insurance for incorporated professionals isn't just personal coverage — it's corporate planning. Here's what the conversation looks like.

Corporate-Owned Life Insurance (COLI)

Life insurance held inside your corporation can grow tax-sheltered and be paid out to shareholders as a capital dividend — tax-free. Used for estate equalization, shareholder protection, and tax-efficient wealth transfer.

PHSP Through the Corporation

Your corporation pays for all eligible medical expenses — dental, prescriptions, vision, paramedical, and more — and deducts 100% as a business expense. No insurer needed. Covers your whole family.

Disability for Corporate Pay Structures

Incorporated professionals who pay themselves dividends need disability structured for a corporation. Frank knows which carriers and definitions work for dividend-based compensation and hybrid salary/dividend structures.

Shareholder Protection & Buy-Sell

If you have a business partner, your shareholder agreement likely requires life and disability coverage to fund a buyout. Frank structures the coverage — life insurance for death, disability buyout for incapacity — so the business survives either event.

Key Person Insurance

What happens to revenue, operations, and contracts if you're gone? Key person insurance compensates the corporation for the financial impact of losing a critical person — owner, founder, or top performer.

Who This Is For

Frank works with incorporated professionals across Alberta — dentists, engineers, lawyers, accountants, consultants, real estate agents, mortgage brokers, IT professionals, healthcare practitioners, and tradespeople who've incorporated.

The conversation is different from a standard personal insurance review. It involves your corporate structure, how you pay yourself, your shareholder agreements, your estate plan, and your accountant's strategy. Frank coordinates with your existing professional team.

Frequently Asked Questions

Go Deeper on Each Strategy

Corporate Life Insurance

Corporate-Owned Life Insurance Strategies — CIRP, Estate Bond, IFA & the CDA

Business Overhead Insurance

Business Overhead Expense Insurance — Keep the Business Running During a Disability

Health Spending Account

PHSP for Self-Employed & Incorporated Businesses in Alberta

Disability Insurance

Disability Insurance for Incorporated Professionals in Alberta

Gavin Dyer

AIC Licensed Insurance Advisor, Alberta

Get Your Free Coverage Review

Free. No obligation. Takes 2 minutes. If you're already covered well, Gavin will tell you.

Also worth knowing

Other ways Frank can help

Disability / Income Protection

Replace your income if illness or injury keeps you off work.

Life Insurance

Term and whole life for families and mortgage holders.