Corporate-Owned Life Insurance vs Personal: What’s Better for Business Owners?

Should a business owner buy life insurance personally or through their

company?

This decision can significantly affect your tax strategy, asset protection, and succession

plan.

Benefits of Corporate-Owned Life Insurance:

Premiums paid by company → reduce taxable corporate income

Cash value becomes corporate asset → strengthen balance sheet

Used for buy-sell agreements, keyman coverage, or employee incentives

Estate planning → cover debts or facilitate shareholder transfers

Benefits of Personally-Owned Life Insurance:

Flexible beneficiary designations

Greater privacy and individual control

Better for personal legacy, mortgage coverage, or education planning

Our Advice:

Scenario	Best Option
High corporate income	Corporate-owned policy
Focus on family or home assets	Personally-owned policy
Shareholder or key employee plans	Corporate + legal structure