Corporately Owned Life Insurance
Most of us are aware that life insurance can be used by individuals to cover debts, pay for funeral expenses, and provide a financial cushion for families after death. You may have even considered owning personal life insurance to fund the income tax bill resulting from the deemed disposition of your private company shares. But did you know that life insurance can also be purchased and used by your corporation for a variety of issues that may arise with your passing? For example, it can be used to pay off corporate debt, shore up operating capital, or buy out shareholders’ estates.