Stop Paying Out of Pocket. Make Your Benefits a Business Expense.
Discover how self-employed Canadians, freelancers, and incorporated contractors use specialized
health structures, life insurance, and guaranteed investments to protect their livelihood
and legally lower their tax bills.
What is the concept: "Tax-deductible Self-employed Benefit"?
When you work for a large corporation, comprehensive health, dental, and retirement benefits are typically part of the package. When you step out on your own as a self-employed professional, you lose that safety net. Most self-employed Canadians end up paying for their prescriptions, dental work, and retirement funding out of pocket, using after-tax personal dollars.
Here is how it works:
"Tax-deductible Self-employed Benefits" flip the script. By legally structuring your health and retirement planning through the Canada Revenue Agency (CRA) guidelines, you can transform these massive personal expenses into legitimate, tax-deductible business expenses. Using specialized micro-group plans, Private Health Services Plans (PHSPs), and insurance-backed investment vehicles, you can build a corporate-level safety net for yourself while significantly reducing your taxable income.
How Can Self-Employed
Canadians Use It?
For the self-employed, your ability to work is your primary asset. If you get sick or the market crashes, you do not have an employer's sick leave or corporate pension to fall back on.
We use a combination of tax-efficient tools to build your personalized safety net:
Custom Micro-Group Plans & HSAs
Whether you are a sole proprietor or an incorporated professional, you can establish a Private Health Services Plan (PHSP) or a streamlined individual benefit plan. This allows you to write off 100% of your family’s medical, dental, and vision expenses as a business deduction, saving you thousands in income tax every year.
Creditor-Protected Retirement (Seg. Funds)
Self-employed individuals carry personal liability. If your business faces a lawsuit or bankruptcy, traditional investments can be seized. By using segregated funds inside an RRSP, you get the tax deduction for your contribution, while the life insurance contract wrapping the fund shields your hard-earned retirement savings from business creditors.
Guaranteed Income (Annuities)
Without a Canada Pension Plan (CPP) employer-match or a company pension, self-employed retirement can feel uncertain. We help independent professionals transition their savings into an annuity, creating a custom, tax-efficient “personal pension” that guarantees a predictable monthly paycheck for life.
Protecting the Golden Goose (Life & Critical Illness)
While health and dental benefits are deductible, we integrate essential living benefits. If you suffer a severe illness and cannot run your business, a Critical Illness policy pays a tax-free lump sum to replace your lost income. If you have business loans, life insurance can be structured as collateral, making a portion of premiums tax-deductible under CRA rules.
Who is it for?
You do not need a team of 50 employees to get corporate-level benefits.
This strategic planning is highly effective for:
Freelancers & Consultants
Independent workers who want to stop paying for their family’s health and dental expenses with heavily taxed personal income.
Independent Sole Proprietors
Small business owners who need to protect their personal assets from business liabilities while aggressively saving for the future.
Incorporated Professionals
IT contractors, real estate agents, and healthcare professionals who want to efficiently extract wealth from their corporation tax-free using health spending accounts and specialized insurance.
Gig Economy Workers
Full-time independent contractors who need a reliable financial safety net to replace the lack of traditional employer sick leave and pensions.
Are You Maximizing Your
Self-Employed Deductions?
Being your own boss shouldn’t mean sacrificing your financial security or overpaying the CRA. At True North Life Insurance, we help self-employed Canadians build customized, tax-deductible benefit and retirement packages that protect their health, wealth, and business.