Private Business ownership is the backbone of any economy in the modern free world. There have been gradual improvements to taxation in an attempt to encourage the entrepreneurial spirit to fill the void created by the new global economy.

The world of entrepreneurship can sometimes be a lonely dark tunnel and too often new ventures do not achieve their first anniversary. Although this high failure rate may discourage many, successful business owners enjoy some of the greatest lifestyles know to the planet.

The need to protect these lifestyles are not only important to the individual but to the many employees who count on the continued success of the operating business. This protection can take many forms and it is only through expert advice that sudden impact to normal operations can be prevented.

If you require advice or would like to protect you and your employees, please contact us here

Life Insurance can be used by an operating business to protect against the sudden loss of one of its key people. This person may be an owner, investor or key employee. The proceeds from a Life Insurance policy may provide for the replacement of a key individual or may inject cash flow to help transition through a difficult time because of this loss. There are many other uses for a Life Insurance program but the key point to remember is that this policy is designed to provide much-needed cash at some point in the future using the profits or cash flow from today. It may be used to fund a buy-sell agreement between shareholders or create the needed cash to fund a succession plan.

Life Insurance policies have been used to protect corporate debt as well as providing the vehicle for executive pension compensation.

If you would like to discuss how a Life Insurance policy may be of benefit to you and your business, please contact me here. 

This type of policy allows for the payment of regular monthly income or a predetermined lump sum amount in the event of a disability due to an accident and/or illness. The cash flow from this plan can compensate the owner or its employees which relieve any financial stress on the business due to the inability of this person to continue to work.

There are also disability programs which allow for coverage for overhead expenses and in some cases a lump sum payment to provide the necessary cash to buy out a disabled business partner.

If you would like to explore how a disability program may provide security and safety to you and your operation, please contact me here. 

This type of policy pays a lump sum benefit when the insured contracts a qualifying illness specified under the insurance contract. The covered illnesses may vary depending upon whether or not the program is for basic or enhanced illnesses. Basic coverage usually covers major illnesses such as cancer. heart attack, and stroke.
While enhanced covers a broader scope of potential illnesses. The lump sum payment may be used to provide compensation to the owner, the investor or key employee and this will relieve any financial stress on the business. The payment may also be used to fund a buy-sell arrangement between shareholders or may provide the necessary capital to fund a succession plan.

If you require any information on how a critical illness policy may help to protect you or your business, please contact me here. 

Group benefits are provided by an employer, association or other organization and are designed to offer valuable coverage to its members in a cost-effective manner.

The idea behind group coverage is that the risk of illness is spread out over a large group of people and that by sharing the risk, affordable coverage is given in the event of one of its members encountering a serious illness or premature death. Employers often utilize benefit programs as a way to attract and retain key employees.

As the economic situation changes in our world, it is becoming more important that we attract the best and the brightest to ensure the survival of our business. These benefit programs are highly sought after by potential employees and the quality of benefits may determine where these new individuals will seek future employment.

Group benefits may include:

Tailoring a Group Plan to fit a particular company or industry can be simple or complex depending upon the needs and goals of the plan sponsor and its members. The easiest way to ensure the best value for any plan is to consult an experienced advisor who deals with a broad scope of business and industry to act as an intermediary to the numerous suppliers who offer this type of coverage.

If you require any information or assistance on how Group Benefits may help you or your business, please contact me here.

Group Retirement programs are designed to provide a source of Pension Income for employees at some time in the future. These programs are normally sponsored by the employer and are designed to encourage savings in a tax-sheltered program so that supplemental income will be provided upon retirement.

More and more Canadians are becoming responsible for their own pension programs and fewer employers are allocating money to sufficiently fund the retirement needs of their employees. Pension programs may take the form of one of three available group retirement solutions. These three solutions are:

Also known as a Money Purchase Plan this plan is similar to the Group RRSP Program in all aspects with the major exception being, regulated restrictions on the flow of income out of the program upon retirement.

I like to describe this program as an “RRSP with handcuffs”. Employers and regulators use this program to help protect people from misusing resources that are earmarked for pension funding.

This is the richest of all the pension options that are provided to Canadians. Although this type of pension program was the standard for many years, it has become an expensive and sometimes fatal option. It is plans such as these that have brought large corporations such as General Motors to their knees. The formula for this type of program uses 3 variables: years of service, the best 5 years of earnings and age at retirement. Often these programs require large outlays of capital and many times are underfunded in years where the stock market underperforms. For those Canadians that are fortunate enough to receive this type of pension, the transition to retirement is rather seamless and there is little impact to their standard of living. These programs are rarely used as they create a large liability for any employer.

In an effort to attract the best and the brightest, many corporations utilize Executive Compensation packages to reward the individuals at a senior level. The two most common forms are the Retirement Compensation Agreement (RCA) or an Individual Pension Plan (IPP). Both of these programs allow corporations to reward performance while also creating a great retention tool. Both of these programs provide increased pension rewards outside of the normal pension programs. In both cases these programs are fully tax deductible to the corporation yet the recipient is not taxed until he begins to receive retirement income.

Business Continuation may constitute different forms and may employ numerous strategies. In all cases, the goal of this program is to ensure a smooth transition in the event of the retirement of or premature death of an owner or shareholder. These programs may allow for a family member to succeed in taking over the business or key employees who are vital to the continuous operation. In other cases, it may involve preparing an exit strategy which may include the sale to an outside party. In all of these, cases it is integral that a blueprint is drafted and mechanisms put in place to ensure the vitality of an ongoing business. The most efficient way to do this is to recruit the services of an experienced advisor who has dealt with these types of situations in the past.

Please click here to get in contact with an experienced advisor in this area.