In many businesses, the retained profits or surplus cash are invested in GICs or other taxable investments.

This is often the case when the owners don’t need the extra income and have a higher marginal tax rate than their business. But, the government will take approximately half of the investment income in tax.

One option is to invest your company’s invested profits using an innovative concept known as Corporate Estate Bond. This is ideal for a corporation or owner who can benefit from a higher immediate estate value, higher tax-free death benefit paid to heirs, has retained earnings available to invest, and can benefit from a tax-deferred investment.

The best solution is InnoVision, a premier universal life product from Manulife Financial. When you die, the corporation receives the proceeds of the policy tax free, plus a credit to its capital dividend account (under current tax laws). Capital dividends may then be paid out to your estate tax-free. It also allows you to move corporate investment dollars from a tax-exposed environment to a tax-deferred one.

To find out more, contact your advisor and also ask about our Immediate Financing Plans.

This program allows personal or corporate lines of credit starting at $30,000 per year, at floating prime + 0.75%, paid monthly. Clients with adequate collateral and an accepted application for financing could receive up to 100% financing, reviewed yearly with a total document review. Acceptable collateral includes a wide variety of existing participating, whole or universal life insurance policies. All legal costs are a client’s responsibility and bank fees include up-front and annual review fees.