Using Insurance in Estate Planning

This module explores the strategic use of life insurance and related products in Canadian estate planning to achieve liquidity, minimize taxes, and preserve wealth. CPAs will examine the tax treatment of life insurance proceeds, the benefits of corporate-owned insurance, and the implications of policy ownership and beneficiary designations. The module also covers using insurance to fund buy-sell agreements, equalize inheritances among beneficiaries, and offset capital gains tax liabilities at death—particularly in the context of private company shares and deemed disposition rules. Participants will learn how to assess the role of permanent versus term insurance, understand policy valuation, and integrate insurance within broader estate strategies involving trusts, wills, and corporate structures. Through practical case studies and CRA interpretive guidance, CPAs will be equipped to collaborate with insurance professionals and advise clients on insurance-driven estate solutions with tax efficiency in mind.