Insurance Capital Program

A Smarter Alternative to Dividends for C-Corporation Owners

Profitable C-corporations often face a simple question:

How do I move money out of the company efficiently?

Most owners default to dividends. But dividends may not be the most strategic option. Dividends are taxed twice. Once at the corporate level. Again personally.

That means less capital compounding for you.

Insurance Capital Program helps business owners evaluate a more capital-efficient alternative.

What If There Was a More Strategic Way?

Instead of distributing profits, your corporation can reposition those dollars into a structured insurance strategy that:

✔ Reduces double taxation exposure
✔ Keeps corporate dollars recoverable
✔ Builds tax-advantaged personal wealth
✔ Integrates estate and exit planning
✔ Creates disciplined capital movement out of the business

The Difference Is Structural

Dividends shrink capital.  Strategic insurance funding reallocates it.

Dividends create immediate tax friction.  Strategic funding prioritizes efficiency.

Dividends are final.  Strategic funding is recoverable.

How the Strategy Works

Instead of distributing profits as dividends:

  1. The corporation advances funds to pay premiums on a permanent life insurance policy.

  2. The company retains a documented right to be repaid.

  3. The policy builds tax-advantaged cash value over time (accessible at any time).

  4. At retirement, exit, or death, the company is repaid.                                                                

The result is a structured way to reposition corporate dollars while preserving recovery rights and building personal wealth efficiently.

 

 

Dividend vs. Strategic Insurance Funding. A Side-by-Side Comparison.

Traditional Dividend Strategic Insurance Funding

Corporate Tax Impact No deduction No dividend paid; funds repositioned

Personal Tax Impact Taxed when received Not treated as dividend income

Double Tax Exposure Yes Designed to reduce double taxation

Control of Capital Permanently leaves company Company retains right to recover funds

Balance Sheet Impact Cash reduced, no asset created Corporate receivable established

Long-Term Growth After-tax funds invested personally Cash value grows tax-advantaged

Estate / Legacy Planning Separate planning required Built-in life insurance protection

Why Business Owners Work with Insurance Capital Corp

  • Specialized focus on C-corporation planning

  • Coordinated design with CPAs and legal advisors

  • Long-term capital efficiency strategies

  • Executive-level planning solutions

Is This Right for You?

This approach may be appropriate if you:

  • Own a profitable C-corporation

  • Do not need immediate full dividend income

  • Are focused on long-term tax efficiency

  • Are planning for exit, succession, or legacy

The Next Step

Insurance Capital Corp specializes in advanced capital positioning strategies for business owners.

If your corporation is generating significant retained earnings, it may be time to evaluate the most efficient compensation options.