Business Owners

Protection Solutions

The death of a partner or major stockholder in a business can have devastating effects on both the business and the deceased partner’s surviving family. The business is concerned with gaining control of the deceased partner’s interest at a fair price so that it can continue operations without interference from the surviving family members. The family members are most concerned with receiving as much money as possible for their interest in the business and for capital that may be needed for estate settlement purposes. Here are some possible solutions to help protect your business, loved ones and co-owners/partners.

Buy Sell Insurance

Using insurance to fund a buy sell agreement is a smart business decision. A buy sell agreement specifies what will happen to the interests of an owner, partner or shareholder who passes away or becomes disabled. Life or disability insurance proceeds rather than personal funds or business assets can be used to fund the buy sell agreement.

Key Person Insurance

“Key person insurance can help preserve the value of your business and its continuation in the event of the death of a key person in the company.”

There may be a number of key people responsible for the successful operation of your company. Many businesses have been built around the strengths and skills of a few individuals whose capital, energy, knowledge, or experience makes them a valuable asset to the organization. Key person insurance can help preserve the value of your business and its continuation in the event of the death of a key person in the company. Replacing the expertise and knowledge of an essential individual can take time and money and can jeopardize the continuity of the business. With Key Person Insurance the employer would be the owner and beneficiary of the policy, and the key employee would be the life insured but would receive no benefit from the existence of the policy. The life insurance proceeds upon the key person’s death would be received tax free by the employer and would provide the liquidity needed to hire and train new skilled individuals and provide cash flow through a period of sales decline. Similar type programs can be set up to protect against a critical illness or the disability of a key employee.

Business Overhead Expense Insurance

With business overhead expense insurance, you can be there for your business, even when you can’t work. If your business depends on your ability to generate income to help pay the bills, your absence due to a long- or short-term disability would impact the bottom line. That’s why you need business overhead expense insurance. It’s designed to help businesses with owners/partners who actively generate income (such as physicians, lawyers, accountants and engineers) pay ongoing fixed expenses-like salaries, rent, property taxes and utilities-in the event that a partner or owner becomes disabled and is unable to work.

Group Benefit Plans

In today’s working environment, valued employees are looking for more than financial compensation. They also want an employer who supports their health, and the health of their families.

For this reason, either by itself or paired with group insurance products, consider attracting and retaining employees with group benefit plans. From traditional health and dental benefits to alternative arrangements like employee wellness programs, health spending accounts, group benefits help make employees more efficient, productive, and happy. Employers also gain tax benefits, such as premiums that are deductible as a business expense in some cases.

Flexible plans offer employers and employees cost-effective, customized ways to address their needs. Choose from an array of benefits like:

Extended health and dental care coverage, which includes options like prescription drugs, paramedical services, vision care, out-of-country medical coverage, basic dental work and orthodontics
Group life insurance
Group short-term and long-term disability insurance
Employee assistance and wellness programs
Health spending accounts
Group critical illness coverage, to help ensure your employees can survive a critical illness
Benefit plans tailored to specialized employee groups, such as foreign or part-time workers, and executives

Group RRSPs & TFSAs

The benefits of group savings plans go further than just the investment.

Providing further benefit options to your employees can go a long way in showing them you value their efforts, and it can also attract skilled employees. A Group RRSP and/or a Group TFSA is a low-cost, highly effective way of supporting your employees’ efforts to increase retirement savings and wealth. As the employer, you pay no fees in establishing a Group RRSP and/or TFSA. The plan design can accommodate any number of participants and allow for various contribution levels and different investment profiles. Setting up a Group plan is very easy and simple to administer through payroll deductions. The employee’s contribution is withheld at source as a payroll deduction. You may top up this contribution with an employer contribution based on any incentive criteria (this contribution is completely optional, but is also a deductible expense for the company). Because the contributions are made regularly, the employee receives the related income tax deduction at the time of each contribution, instead of when filing a return at tax time. This results in a tax savings on each pay-cheque, which reduces the employee’s at-source deductions. We provide any ongoing support needed to ensure that your plan is operating efficiently. When employees join your Group RRSP and/or TFSA we are happy to offer free investment planning advice to help them achieve their retirement savings goals.

Lunch n' Learn Sessions

Our seminars are focused on educating individuals and families on how they can make healthy financial decisions that will have a positive impact on their lives. Each one is tailored to a specific group so it keeps the material fun and engaging. Host a “Lunch ‘n Learn” session for your employees and we will provide a $100 Visa Card for a free draw to those in attendance. Your choice of “Lunch ‘n Learn” sessions include:

Investing 101 – Understanding the Jargon & Options
Retirement Readiness: How much do I need? Will I outlive my income?
Your Money: Take control of your finances
Life Stages: Financial strategies for a lifetime
Estate Planning & Leaving a Legacy