Corporate-owned
Whole Life insurance:
The tax-smart solution for
Canadian physicians

Why doctors choose Whole Life insurance

Incorporated physicians face a unique challenge: your Medical Professional Corporation earns strong profits, but your retained earnings are taxed heavily.

Traditional corporate investment are counted as passive income taxed at nearly 50%, and can even reduce your small business deduction once passive income exceeds $50,000.

Corporate-owned Whole Life insurance changes that by offering: guaranteed lifelong protection, tax-deferred cash value growth, tax-efficient access to liquidity, and a tax-free death benefit for your family.

It's one of the most reliable long-term wealth building tools for doctors who want predictable growth, greater tax efficiency, and long-term financial security - all while building a tax-free legacy for your family.

Maximize wealth & tax efficiency with Whole Life insurance

Physician-focused solutions for lasting financial growth, tax-free benefits, and confident planning at every stage of your medical career.

Tax-sheltered & growth advantages

Grow your policy's cash value tax-deferred for lasting wealth.

Tax-efficient access to cash value

Withdraw or borrow from cash value for personal or business needs.

Preserve your small business deduction

Cash value growth isn't passive income not affecting the SBD

Tax-efficient estate transfer

Pass on wealth tax-free to beneficiaries through your policy.

Strategic use of corporate dollars

Pay premiums with lower-taxed corporate income for savings.

Unique wealth preservation for medical professionals

Tailored coverage for lifetime financial and practice security.

Whole Life insurance vs. corporate investments: what's the real advantage?

Unlike traditional investments that are heavily taxed within the Medical Professional Corporation (MPC), Whole Life insurance policies grow on a tax-deferred basis. Dividends and interest earned inside the policy are generally not subject to corporate tax, providing you with a more predictable and efficient means to build your corporate surplus while reducing exposure to market volatility.

Feature	Corporate owned Whole Life insurance	Traditional corporate investments
Tax Treatment on Growth	Tax-sheltered growth no corporate tax on cash value growth	Annual growth taxed as passive income at ~50% rate
Impact on Small Business Deduction	Not passive income so does not trigger SBD clawback	Investment income can claw back SBD, increasing corporate tax
Access to Capital	Tax-efficient access via policy loans; typically tax-efficient	Withdrawals trigger tax events; sale of assets subject to capital gains
Market Volatility	Cash value grows predictably; not subject to equity market swings	Value fluctuates with markets; risk of capital loss
Death Benefit/Estate Transfer	Death benefit paid tax-free via Capital Dividend Account to heirs	Assets subject to deemed disposition and massive estate taxes
Premium Payment Source	Can be paid with low-tax corporate dollars	Investments made with after-tax surplus
Guaranteed Returns	Guaranteed minimum growth + potential dividends	Returns vary; no guarantees
Liquidity	Policy loans/withdrawals for business/personal use	Must sell assets or trigger gains to access cash

Guaranteed growth and dividends to build your corporate wealth

Whole Life insurance delivers predictable, guaranteed cash value growth year after year—plus annual dividends that averaged 6.25%–6.4% in 2025 from leading Canadian insurers like Manulife (6.35%), Equitable (6.4%), iA Financial Group (6.35%), and Sun Life (6.25%). Unlike traditional investments, this steady growth is unaffected by market swings, so physicians benefit from tax-efficient wealth building inside their corporation. Dividends can help offset premiums or boost the policy's cash value—providing greater flexibility and amplifying overall value. With consistent returns and no market volatility, Whole Life is an ideal solution for doctors looking to accumulate capital and support long-term planning with confidence.

Can I access the cash value when needed?

Yes, Whole Life insurance policies owned by your corporation allow flexible and tax-efficient access to your accumulated cash value. This liquidity supports everything from practice expansion to personal financial needs without triggering immediate taxes.

These are the ways you can access the cash value:

✓Policy loans: Borrow from your insurer while your policy continues to grow.
✓Withdrawals: Take tax-advantaged withdrawal funds from cash value, amounts up to your ACB are generally tax-free.
✓Collateral loans: Use the cash value as collateral to secure third-party loans like lines of credit, often up to 90% of your cash value.

What physicians are saying about Whole Life insurance

★★★★★

I was losing nearly 50% of my corporate investment income to taxes. After implementing a Whole Life strategy with PolicyAdvisor, I'm building tax-sheltered wealth and have access to capital whenever I need it—without triggering a tax event. Wish I'd known about this 10 years ago.

Dr. Sarah M., Family Physician, Ontario

★★★★★

As a specialist running my own practice, I needed a way to grow my corporate surplus without the passive income tax hit. Whole Life insurance through PolicyAdvisor has been a game-changer—I'm building wealth tax-sheltered and can access funds for clinic expansion without tax consequences.

Dr. James K., Cardiologist, British Columbia

★★★★★

I was skeptical about Whole Life insurance as an investment vehicle, but PolicyAdvisor explained how it fits perfectly into my corporate structure. Now I'm preserving my small business deduction while building guaranteed cash value. The tax benefits alone make it worth it.

Dr. Maria L., Pediatrician, Alberta

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How flexible are Whole Life insurance policies

Whole Life insurance policies provide fixed premiums and coverage amounts for stability, but also offer flexible options to adjust payments or coverage based on your changing needs. You can typically choose to pay premiums over 10, 20 years, or up to age 100. Some policies allow you to use dividends or extra payments to reduce premiums or buy additional coverage.

This balance of guaranteed stability with some premium and coverage flexibility helps physicians manage costs while growing cash value predictably for long-term financial goals.