The government is changing some of the rules regarding the exempt status of income earned inside an insurance policy. The change is effective January 1, 2017.
Life insurance inside a corporation has been an effective tax planning strategy. The changes will reduce the effectiveness of the tax planning. However, existing policies issued before January 1, 2017 will quality for grandfathering.
As a result of these changes it is a good idea to put your policy in place before the deadline. Do not wait for the last minute start the process now. Even if you do not have extra money today to invest inside your insurance policy it can be beneficial to set it up now so
Start by calling your life insurance agent. Ask about corporate owned life insurance for tax benefits.