As a business owner you have options: your insurance policy can be personally or corporately owned. There are tax advantages to a business-owned policy. It provides a one-time, tax-free payout for your business if you, your business partner, or key employees die or become critically ill. Insurance isn’t just a way to help protect your business, it also helps diversify your assets. You also may be able to access the policy’s value.

At what development stage is your business?

New

You’ve likely taken out a business loan and your primary focus is on debt repayment.

Growing

You want to retain your key employees and ensure you attract desirable employees. Your business decisions are well thought out so your capital is used efficiently.

Established

A key priority for you is to develop a successful business succession plan or business continuation strategy. From a personal perspective, you want to ensure future financial comfort for your family, or perhaps you would like to give back to your community by supporting a charitable organization.

Financial Need

You’re looking to cover a temporary financial need, such as a mortgage or business loan. 

Solutions:

• You can plan to meet more of your personal and business needs in the event of death with personal life insurance.
• With a personally owned life insurance policy, not a lender’s mortgage insurance, you have the option to switch your business loan or mortgage to another lending institution without jeopardizing your life insurance coverage. Also, your coverage isn’t reduced by a decline in your loan or mortgage balance.

Key Employees

You want to protect your business in the event of the death of a key employee. You want to retain your key employees and ensure you continue to attract desirable employees.

Solutions:

• The unexpected loss of a key person may create numerous problems that threaten the viability of your business. Creditors may restrict or withdraw credit, suppliers might tighten payment terms and customers might re-think their purchase.
• Key person insurance can reduce the financial impact by ensuring there is an injection of liquid capital to allow family or management staff time to find a suitable replacement or recover the cost to the business of the lost person.

Business Partner Buyout Plan 

You’d like to ensure you have the funds to buy a business partner’s interest at their death or retirement.

Solutions:

• Life insurance coverage is a great way to fund future succession plans or to fund business continuation plans. A business growth protection rider may be purchased where the business value is expected to grow in future to potentially avoid shortfall in funds available for buy-out.
• Life insurance can also be used in conjunction with an estate freeze to fund future capital gains taxes, or redemption of the shares, as well as provide a means for estate equalization.

Retirement Income 

You’d like a tax-effective way of supplementing retirement income for you and your spouse.

Solutions:

• Critical illness insurance coverage can be used as a strategy for tax-advantaged cash value accumulation (within legislated limits) to complement your current retirement income program and increase your estate values.

 Family Protection 

You’d like to ensure your spouse’s lifestyle is protected.

Solutions:

• Life insurance can protect your spouse’s lifestyle by replacing your future income in the event of your unexpected death.
• Segregated fund investments can protect yours and spouse’s Investments and savings against creditors.
• Segregated fund investments can hedge against market volatility during an unexpected death.

Preserving Your Estate 

You’d like to ensure taxes owing on your estate are paid, leaving your assets intact for your heirs.

Solutions:

• Life insurance coverage is a great way to ensure your estate has the liquidity needed to pay final taxes. 
• Segregated fund investments can protect yours and spouse’s Investments and savings against creditors.
• Segregated fund investments can hedge against market volatility during an unexpected death.

Leave a Legacy 

You’d like to leave a legacy for your heirs or a favourite charity.

Solutions:

• A carefully arranged planned gift can be tax effective,and at the same time balance your final needs and the needs of your family. You can provide your favourite charity with stable funding over the long term, without reducing the estate available to your heirs or jeopardizing your future financialindependence.

Providing for Your Children 

You’d like to provide your child(ren) with financial resources for the future – whether or not they’re actively involved in your business.

Solutions:

• Life insurance coverage creates a financial foundation for your family’s future. It can provide a flexible asset that grows along with your child.
• Critical illness insurance coverage can be used as a strategy for tax-advantaged cash value accumulation (within legislated limits) to complement your current retirement income program and increase your estate Values.

The insurance you choose depends entirely on your individual situation and goals. Depending on your coverage needs, term life insurance and permanent life insurance can be important parts of your business plan now and in the future.

Together, we can determine your needs and decide which strategies are best for you.