Who Should Own Your Life Insurance Policy? 
In Canada , you can own a policy on anyone you have an insurable interest in -LRB- with their permission -RRB- including yourself . If your company owns the life insurance on your life and the company is not the beneficiary . It would be considered a taxable benefit . With one exception transfer of ownership is considered a deemed disposition . In other words it could trigger a taxable gain . The Income Tax Act provides for the transfer of a policy to the policyowners child , without a taxable disposition to the policyowner , if a child of the policyowner is the only person insured . Child includes any natural or adopted child , grandchild , stepchild , son - or daughter-in-law . THAT ONE EXCEPTION creates a planning opportunity . Does it make sense to keep paying income tax each year on the growth of your non-registered investments ? Use non-registered assets you wont need during your lifetime . Buy an exempt permanent life insurance policy . Structure the policy to : enable tax-efficient distribution of your assets to future generations and give you control and access while living . Growth inside a permanent life insurance policy is not subject to annual tax -LRB- within limits -RRB- and Proceeds of life insurance go to named beneficiaries tax-free . Example : How it works : You own the policy . Your adult child is the insured person , Your grandchild is the beneficiary While living , Your adult child is contingent owner At your death , Your adult child becomes owner of policy Benefits for you Taxes - Reduce your annual income tax Control - Keep control of your assets - Can change beneficiary and coverage amount -LRB- subject to underwriting requirements -RRB- - Can access the cash value in the policy if necessary Legacy - Preserve your legacy for your children and grandchildren - Generate estate value , not taxable income If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 