Business Insurance

Key Person Insurance

1.What is Key Person Life Insurance?

Key Person Life Insurance certifies financial protection to continue operations effectively in the event of death or disability of a key person employed in a business organization.

2.Who should consider Key Person Life Insurance?

If you are a small business owner with an individual who is vital to your company, Key Person Life Insurance secures your financial future in the case of death or disability. The key person also could be the owner himself/herself.

3.Benefits of Key Person Life Insurance

Some of the benefits from a Key Person Life Insurance plan are:
• Recruiting or training a replacement.
• Paying off debts and deals.
• Reassuring lenders about your company’s finances.
• Reassuring customers, investors and employees of continued business operations.

Buy-Sell Agreements

1.What is a Buy-Sell Agreement?

Buy-Sell Agreement is an agreement between shareholders in a corporation to operate effectively in the event of a shareholder’s disability, death, retirement or fallout from disagreement. The agreement ensures smooth business transaction, resolving banking dividends and adhering to corporate policies despite interruptions or dispute.

2.Who should consider Buy-Sell Agreement?

Buy-Sell Agreement works well for business associates, private corporations and shareholders to ensure smooth business operations in the case of dispute or disruptions. An experienced tax and legal advisor should be consulted while drafting out the agreements.

3.Benefits of Buy-Sell Agreement

Buy-Sell Agreement comes with numerous objectives, some of which are:
• Allowing business groups and companies to steer clear of financial strain.
• Ensuring sale or appropriate funding for continuity of the business.
• Reassuring customers, employees, suppliers and creditors during dispute.

Insured Retirement Plan

1. What is Insured Retirement Plan?

The Insured Retirement Plan provides a corporation with valuable life insurance protection on a key person or shareholder and the opportunity to access policy values tax-free in the future for retirement or any other emergency needs.

2. Who should consider Insured Retirement Plan?

Business owners or key shareholders who have a corporate surplus and want to benefit from the tax-preferred growth of an exempt life insurance policy.

3. Benefits of Retirement Compensation Arrangements

Under current tax law, the cash value in a life insurance policy accumulates tax-free, up to certain limits. The Insured Retirement Plan lets you use that cash value at a point in the future. Whether you want to supplement retirement income, purchase a vacation property, or go on a trip, the Insured Retirement Plan lets you use your policy’s cash value as collateral for a bank loan. This bank loan provides the cash you desire and you receive it tax-free. The loan doesn’t have to be repaid until the life insured dies. When the insured person dies, the tax-free death benefit is used to repay the loan. Once the loan is repaid, any remaining death benefit is then paid to the policy’s beneficiary.

Non-Registered Savings Plan

1.What is a Non-Registered Savings(Investments) Plan?

Registered investments are registered with the federal government for tax purposes. They must be transferred instead of withdrawn to avoid penalties.
Non-registered investments are not registered with the federal government and the earned income is taxable every year.

2. Who should consider a Non-Registered Savings Plan?

Investors, who prefer flexibility in their investments, save for withdrawal purposes (vacations, short-term goals), or those who have reached the contribution limit for their Registered Retirement Savings Plan (RRSP) or TFSA and need to invest further should have Non-Registered Investments.

3. Benefits of a Non-Registered Savings Plan

There are several benefits:
• No contribution or withdrawal limits.
• Can be used for any investment vehicles.
• You can borrow to invest in non-registered for tax planning purposes.

Individual Pension Plan

1.What is an Individual Pension Plan?

Individual Pension Plan is a tax-free retirement savings plan for a single individual. The plan sponsor should be an incorporated, active company.

2.Who should consider an Individual Pension Plan?

An Individual Pension Plan is for business owners who have maximized their Retirement Savings Plan (RSP) contributions.

3.Benefits of Individual Pension Plan

The benefits of an Individual Pension Plan are many:
• You have a predictable retirement income.
• Employees over 50 can have higher contributions than RSP limits.
• You are given pension contributions by the company for your years of service.
• IPP funds are protected from creditors.
• Expenses and fund contributions are fully tax-deductible.