How Life Insurance Fits Into Tax and Estate Planning for Business Owners (Ep. 41)
For business owners, life insurance can become much more than income protection. As your business and wealth grow, questions around future tax liabilities, estate equalization, business obligations, and transferring wealth can make the right insurance structure increasingly important.
In this episode, Frankie and Sarah welcome Hemal Balsara, Head of Tax, Retirement and Estate Planning at Manulife, to explore how life insurance can support different planning needs. They look at term and permanent insurance, health and financial underwriting, conversion features, and how permanent policies may fit into tax and estate planning. They also explore corporate-owned life insurance, the capital dividend account, and why policy ownership and beneficiary designations require careful consideration.
For business owners, choosing a life insurance policy isn’t only about how much coverage to buy. The type of policy, underwriting requirements, conversion options, ownership structure, and beneficiary designation can all affect how that coverage fits into a broader tax and estate plan. Listen to the full episode to hear what Frankie, Sarah, and Hemal say business owners should understand as they evaluate those decisions.
Frankie, Sarah, and Hemal discuss:
- What business and estate planning needs can life insurance help address?
- How can term and permanent life insurance serve different planning needs over time?
- Why do health, financial underwriting, and conversion features matter when choosing coverage?
- How can corporate-owned life insurance and beneficiary designations affect tax and estate planning?
Connect with Frankie Loreto and Sarah Netley:
- Courtice.BakerTilly.ca
- LinkedIn: Baker Tilly Canada
- LinkedIn: Frankie Loreto
- LinkedIn: Sarah Netley
- Call: (905) 579-5659
Connect with Hemal Balsara:
About our Guest:
Hemal Balsara is Head of Tax, Retirement and Estate Planning at Manulife, where his work focuses on providing tax, retirement, estate, and insurance planning support to advisors navigating complex planning situations. His areas of focus include life insurance, retirement and estate planning, corporate planning, wealth transfer, and the tax implications associated with different insurance structures. In this episode, Hemal shares his perspective on how life insurance can address both temporary and permanent needs, while explaining considerations around underwriting, policy ownership, beneficiary designations, and corporate-owned insurance.
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