One of the things we help entrepreneurs with when looking at their financial plan is how they can effectively structure their insurance strategy. The biggest challenge with owning insurance personally is that you’re paying for it with dollars that have been taxed at a significantly higher rate.
If you have a corporation, you definitely want to own your insurance inside of your corporate structure. You’re paying tax on earnings inside the corporation at 13.5%, which gives you a significantly higher amount to purchase that insurance. This is much better than paying personal taxes at the 40% (sometimes higher) tax rate and then buying your insurance with those after-tax dollars.
If you’re incorporated, it’s important to ensure that you are maximizing the benefits of your corporation and owning your insurance inside of the corporate structure.
If you want to learn how to properly structure your insurance and which products will benefit you the most, visit our Contact Page to book a call, we’d love to talk through your goals.