For Business Owners

Key Person Insurance

Is a large portion of your business hinging on a few key people? Then, you should give some thought to key man insurance. It is life insurance for the business world.

Who should be covered? If there is anyone, that sudden loss of their skills or abilities would impact financially on your company, you need key man insurance

• Business Owner
• Sales Manager
• Sales Person
• Any other Key Employee

What Is It…

Simply put, it is a term life insurance policy. Premiums are paid for by the company and the company receives the death benefit to offset any immediate financial losses caused by the death of the employee.

How Much…

Losing a key employee can harm your business in multiple ways. It should provide enough money to account for all costs associated with such a loss.

• Immediate loss of profits or revenue
• The costs of hiring temporary replacement staff
• The search for a suitable replacement
• The new employee’s training

Key Person Disability Insurance

This policy serves the same purpose as life insurance for the key business personnel should that person become disabled.

The policy pays a monthly benefit to the business in order to cover the expenses for additional help or outside services when the essential person becomes disabled.

Buy/Sell Funding

Buy/sell agreements provide for the transfer of the ownership of the business in different circumstances of death, disability or retirement. At death or disability, you may not want to be in business with your partner’s heirs or continue with a non-active disabled owner.

A buy/sell agreement should deal with:

• Who will buy the shares
• What the terms of sale will be
• When the sale will take place
• How much the purchase price of the shares will be
• Where the money to buy the shares will come from

Life insurance ensures that money is available to buy the shares so the business can get on with business.

Business Overhead Expense

Business Overhead Expense insurance is designed for the small business owner to pay for certain overhead expenses that continue if you become disabled.

It indemnifies the business for such expenses as:

• Rent
• Taxes
• Insurance premiums
• Utility bills
• Employees’ compensation

By paying for these expenses when you are disabled, the business is given the opportunity to keep its doors open and continue to function.

Health Benefits

Your business operates in a dynamic market and competition is fierce. A key challenge that your business may face is competing for talented employees. One way to attract and retain employees is to provide them with a sense of security. This can be done by offering a solid group benefits plan.

• Health
• Dental
• Disability
• Life

Group RRSP

As an employer, you can help your employees save for a comfortable retirement.

• Easier to have a small amounts deducted from each pay cheque
• Immediate tax savings