Bank On Yourself® for Business: 

A Unique Financial Solution in Canada


When it comes to business, having a solid financial strategy is essential, and that is where Bank On Yourself® comes in. In Canada, using the Bank On Yourself® concept educates clients about properly designed strategies used to transform corporate-owned participating whole life insurance policies into powerful assets that offer not only insurance protection and a tax-free death benefit but also a cash value that becomes a supercharged resource your company owns and controls.

Understanding Bank On Yourself® in Canada

Bank On Yourself® is a time-tested financial concept using participating or dividend-paying life insurance policies with a 160-year track record focusing on helping businesses achieve their financial goals. Developed by Pamela Yellen, this concept offers a safe and predictable way to grow your money, even in the face of market volatility. It is a unique approach that can provide significant benefits for business owners.

Benefits of Bank On Yourself® with Participating Whole Life for Business

1. Protection

Corporate-owned participating whole life insurance is a versatile asset class, offering comprehensive protection against unforeseeable risks. A Bank On Yourself® Canada Professional can structure your corporate-owned participating whole life insurance policy to fund key-person protection, buy-sell agreements, and serve as a resource to manage liabilities.

2. Cash Flow & Business Financing

The Bank On Yourself® concept shows you how your business can access liquid capital that builds equity annually, thanks to guaranteed returns and potential dividend earnings. This equity provides a readily available source of business financing, giving your business the flexibility it needs to grow and thrive.

3. Tax Advantages

In keeping with the Bank On Yourself® concept, the cash value of a corporate-owned participating whole life insurance policy enjoys tax advantages. It's not taxed as a capital gain like other savings and investment products. This tax-preferred growth, within limits set by the Income Tax Act and Regulations, allows you to store retained earnings tax-sheltered while continuing to watch your money grow.

4. Retirement

Bank On Yourself® isn't just about planning for the present; it's also about planning for the future. When structured properly, the cash value of a corporate-owned, participating whole life policy can fund business expenses during your working years. And once you retire, it can provide a supplemental stream of tax-free retirement income under current Income Tax law in Canada.

5. Corporate Estate Transfer

If you're a business owner or a majority shareholder in a Canadian corporation with taxable investments, the Corporate Estate Transfer can be a game-changer. By reallocating corporate surplus from taxable investments into a corporate-owned, participating whole life insurance policy, you can reduce the impact of the "double tax trap" when transferring shares from your corporation to your estate.

6. Asset Strategy

One of the standout features of a corporate-owned, participating whole life insurance is the unique ability to use it as a supercharged asset and even as an asset strategy. This asset strategy allows your business to leverage the equity in your whole life insurance policy's cash value for various purposes, such as financing business expenses, expansion, or using it as collateral for other financing sources. Additionally, this tax-advantageous asset can help you reallocate funds from taxable investments into your corporate-owned participating whole life insurance policy, becoming a valuable part of your overall financial strategy.

Trust the Experts

It is essential to have a Licensed Life insurance Agent with specific training and credentials in Bank On Yourself® and related concepts to structure the ideal corporate-owned participating whole life policy for your business. Our team at SET Financial Solutions, a strategic partner of MacDev Financial, are the exclusive Canadian providers of the Bank On Yourself® concept and the Bank on Yourself® Professional Training program. Our licensed life insurance agents have undergone rigorous training to become Elite Bank On Yourself® Canada Professionals, ensuring you receive expert guidance tailored to your business needs.

Contact us today to discover how Bank On Yourself® Canada can transform the financial outlook of your business and empower you to achieve your financial goals.