Business-Debt Insurance for Alberta Business Owners

Does your business have a commercial mortgage, equipment financing, an operating loan or debt from an acquisition?

Whether you are arranging new financing or already have lender insurance, ask: 

• Could remaining proceeds potentially be paid from your corporation to your family tax-free?
• If you died, would the insurance protect only the bank—or your business and family too?
• Does the coverage decline as the loan is repaid?
• Would the policy disappear if you changed lenders or refinanced?
• Who owns and controls the coverage—you or the lender?
• After the loan is paid, would any insurance proceeds remain for your company or family?

A properly structured life insurance policy may satisfy the lender’s requirements, repay the debt and leave any remaining proceeds with the named beneficiary. It may also continue protecting the business and family after the loan is repaid.

Before accepting the lender’s insurance, find out what you own, what the bank controls and exactly where the money goes if you die.

Review My Loan Protection

Bring your loan documents and existing insurance information. In 20 minutes, Fusion can help you understand what you have and whether another structure deserves consideration.

Insurance contracts, lender requirements and tax outcomes vary. The ability to pay a tax-free capital dividend depends on policy ownership, beneficiary designation, adjusted cost basis and applicable tax rules. This information is educational and is not legal, tax or lending advice.