^Blog Why Business Owners Should Be Cautious About Life Insurance Pitches

The Life Insurance Pitch is Everywhere – But Should You Buy In?

If you’re a successful Canadian business owner, you’ve likely been pitched corporate-owned life insurance multiple times, maybe even this week. Scroll through Facebook, Instagram, or TikTok, and you’ll see advisors promoting overfunded life insurance as the ultimate tax-free retirement solution. The promise? Your money grows tax-free, comes out tax-free, and solves all your financial planning needs.

But here’s the truth: life insurance is a tool, not a plan.

At Three60 Wealth, we aren’t against life insurance. In the right situation, such as estate planning, tax-efficient wealth transfer, or funding shareholder buyouts, it can be incredibly effective. But it only works when it’s integrated into a well-structured financial plan that considers your unique business structure, family situation, and long-term goals.

Is It for Your Benefit, or Theirs?

Too often, insurance is presented without any real planning behind it. If your advisor hasn’t asked for your corporate financials, hasn’t reviewed your estate plans, or hasn’t built a written financial strategy, then you’re likely being sold a product, not offered a solution.

Before moving forward with a life insurance strategy, ask yourself:

• Has my advisor taken the time to understand me and my business?
• Do I have a complete financial plan in writing?
• Is this insurance recommendation part of a bigger plan, or is it the entire plan?

Get the Clarity You Deserve

To help you assess your current situation, we’ve created a 20-question self-assessment. It takes three minutes and is completely free. It’s designed to help Canadian business owners determine whether they’re getting financial advice, or true financial planning. You can download this for free by visiting: three60wealth.ca/planning

At Three60 Wealth, we help business owners navigate complex planning with clarity, objectivity, and strategy – not sales tactics. If you are interested in learning more about how we can help you, we encourage you to connect with us to start a discussion.

To learn more or schedule a conversation, visit Three60Wealth.ca or call us today at (403)640.4414.

Authored by: Jason Nagel, at Three60 Wealth