Own millions in permanent coverage without draining your corporation’s capital.
Watch the 13-minute walkthrough of the Asset Builder strategy: how incorporated owners turn trapped corporate surplus into an asset that grows, stays accessible, and can ultimately reach their family tax-free.
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Click to play · sound on · 13 min
See how this would work for your corporation.
Answer 4 quick yes-or-no questions, then book your Corporate Surplus Capital Review right here on this page.
Chartered Financial Planner® · CLU® · 25+ years combined experience · We work alongside your accountant
The full strategy, in writing.
Everything from the video, in order: the problem, the five steps, a real example, the risks, and who this is for.
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Three ways to touch your corporate surplus. Three tax bills.
You put your own money in when nobody else would. You made payroll in the lean months. And the moment the company became profitable, the tax system showed up to collect: first on the profit, then again when you tried to use it.
Take it out as salary
You can lose up to about 53% of it to personal tax.
Take it out as a dividend
You pay personal tax on money your corporation already paid tax on.
Leave it invested inside
Passive income can be taxed at over 50%, and past $50,000 a year it starts eating into your small business tax rate.
Most owners accept this as the price of success. It isn’t. It’s the price of leaving your surplus in the wrong structure.
Five steps. Your capital never leaves your business.
Known in the industry as an Immediate Financing Arrangement (IFA). High net worth families and business owners have used it for decades, yet it’s rarely explained properly, because it sits where insurance, tax, lending and estate planning meet.
Your corporation buys a participating whole life policy
Permanent insurance that builds cash value. The insurer may pay dividends into it.
It pays the premium from surplus cash
Money that was sitting idle, exposed to tax in every direction.
It borrows the same amount back from a bank
Using the policy as collateral.
The borrowed money goes back to work
Into the business or its investments, earning income. That’s what can make the loan interest tax-deductible.
The death benefit is paid to your corporation tax-free
It repays the loan, and what’s left can go to your family as tax-free capital dividends.
Already know you want to see this with your own numbers? Answer 4 quick questions and book your review.
A 52-year-old owner. $2 million of permanent coverage.
$80,920
What most people assume it costs.
$2,647
Premium paid, then borrowed back at an illustrated 4.45%. Interest of $3,601, after the corporate deduction at an assumed 26.5%.
Protected from day one
Loan about $405,000. Death benefit about $2.1 million. If you pass away early, the policy pays off the loan and the rest goes to your corporation.
Cash value passes the loan
Loan $971,040. Cash value about $1.1 million. Death benefit about $2.6 million. From here, policy dividends cover the premiums, so the borrowing stops.
About $2.5 million to family
Illustrated death benefit about $3.47 million, received by the corporation tax-free. After repaying the loan, about $2.5 million can be paid out to your family tax-free.
Same policy. Same death benefit. Two very different uses of your capital.
$971,040 out the door
Cheques written over 12 years. Capital that stops working for you.
$971,040 stays invested
Your cost is the after-tax interest: about $206,000 over the first 12 years, then about $31,800 a year. Roughly $842,000 over 32 years, spread across decades while your capital keeps earning.
3.3%
After tax, the loan costs your corporation about 3.3% a year. If your business earns more than that on its capital, this strategy puts you ahead.
Illustration for educational purposes. Figures assume the current dividend scale, 4.45% interest, and a 26.5% corporate tax rate. Not guaranteed. Your numbers will be different.
More than a tax strategy. Permission to spend.
Grows, and stays accessible
Cash value grows inside the policy on a tax-advantaged basis, and you can borrow against it. If you ever decide you don’t need the policy, you can surrender it for its cash value.
Coverage for life
Die at 55 or at 105, the policy is there. With policies on both spouses, the survivor is protected too.
Enjoy the years you’ve earned
Most successful owners underspend in retirement, afraid of outliving their money or leaving a spouse short. When the legacy is already locked in, that fear goes away.
The risks, said out loud.
These are illustrations, not promises. Every strategy carries risk. The question is whether you understand yours.
In your review, we stress-test the illustration with lower dividends and higher interest rates, so you see the downside before you commit.
Dividends are not guaranteed
The insurer sets the scale and it can go down. Participating accounts hold bonds, mortgages and real estate with returns smoothed over time, so scales tend to move slowly. This illustration uses the current scale, not projected improvements.
Interest rates change
We illustrated 4.45%. If rates rise, the carrying cost rises with them.
Collateral in the early years
Until the cash value catches up to the loan (around year seven in this example), the bank may ask for additional collateral.
Deductibility depends on CRA rules
Borrowed money must be traced to an eligible income-producing use, which is why we work alongside your accountant.
Rules can change
Tax rules and lender terms can change over a 30-year horizon.
Built for a specific kind of owner.
This is for you if
This is not for you if
Parth Parasar
Chartered Financial Planner®, CLU® · Founder, Rise Wealth Solutions Inc.
My team has over 25 years of combined experience helping business owners across Ontario and Alberta build wealth, access it, and pass it on with as little tax friction as possible.
This strategy sits between professions. Your accountant sees the tax. Your investment advisor sees the portfolio. Your lawyer sees the estate. Nobody owns the gap in the middle. That’s the gap we fill, working alongside your team, not around them.
Before you book.
Why hasn’t my accountant told me about this?
Because it sits between professions. Your accountant sees the tax, your advisor sees the portfolio, your lawyer sees the estate. We bring it together, and we work with your accountant on every step.
I’ve been told to buy term and invest the difference.
For many individuals, that’s reasonable advice. This is a different situation: a corporation with surplus capital, owning a participating policy as a tax-advantaged asset, financed with potentially deductible interest. Different structure, different math, different outcome.
What happens in the review?
In 30 minutes, we build your corporation’s actual numbers: your age, health, surplus and tax situation. You see exactly what the strategy looks like for you, risks included. If it fits, we map next steps together with your accountant. If it doesn’t, you’ll know exactly why.
What does the review cost?
Nothing. No cost, no obligation.
How does the money reach my family tax-free?
The death benefit is paid to your corporation tax-free. Through the Capital Dividend Account, the tax-free portion can then be paid to Canadian-resident shareholders as capital dividends.
See the Asset Builder with your corporation’s numbers.
Answer 4 quick yes-or-no questions so we can prepare for your call, then book your Corporate Surplus Capital Review right away.
Insurance is priced on age and health, and both only move in one direction. Every year you wait, the same strategy costs more.