Risk Management & Insurance
(Personal and Corporate)
Personal Insurance
Life Insurance:
To provide funding for financial survival of your loved ones, Taxes, Estate planning, Lifestyle protection, Inheritances, Corporate tax deferral (with cash values), Charitable giving, Final Expenses etc.
Mortgage Insurance:
Guarantees repayment of a mortgage loan in the event of death or, possibly, disability of the mortgagor.
Critical illness Insurance:
Critical illness insurance is a form of health insurance that provides a lump-sum payment should you become seriously ill. Typical illnesses and diseases covered by critical illness insurance may include, Cancer, heart attack, heart valve replacement, coronary bypass surgery, stroke, blindness, Alzheimer’s, multiple sclerosis, organ transplants, kidney failure, paralysis, burns etc
Disability Insurance:
Disability insurance, also known as “income replacement,” insurance, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income and ceases once you earn an income, or you no longer meet the definition of disability in the contract.
Long term care insurance:
Long-term care insurance provides for personal care on a long-term basis if you need supervision or assistance with daily living activities due to a chronic illness, disabling condition or cognitive impairment. Long-term care policies generally reimburse, up to a specified limit, the expenses incurred for various types of care, such as nursing home or home health care; or they pay a pre-determined benefit amount on a daily or monthly basis.
Corporate Insurance
Business overhead insurance:
Business overhead expense (BOE) insurance is designed to reimburse a business for overhead expenses in the event a business owner becomes disabled. This is not the same as personal disability insurance which usually pays benefits to age 65. A business overhead expense policy pays a shorter benefit of one to two years after a waiting (elimination) period. It is generally considered that no business can stay open more than two years if the owner is disabled, and the business will either be shut down or sold. The premiums paid for the business overhead expense insurance is a legitimate, tax-deductible business expense; however, the benefits are treated as taxable income when paid. Generally, there are two conditions which must be met to trigger the payment of benefits: total disability due to injury or sickness must be present and the expenses covered by the policy must be incurred during the disability. Typically, eligible business overhead expenses are employee salaries, employment taxes, employee benefit costs, rental payments for property and equipment, principal and interest on mortgaged business property, utilities, accounting and legal fees, business insurance expenses, interest on business debts, property taxes, general office supplies
Key person insurance:
The objective of key person insurance is to financially protect the company from adverse impacts if one of those key employees or owners suddenly dies or becomes disabled. The finances available from a key person insurance policy would, provide funds to find, recruit and train a replacement, help replace any profits the company may have earned had the employee / owner not died, strengthen the company’s working capital and balance sheet to help assure creditors and suppliers about the continuity of the business.
Buy Sell insurance:
Own a business? Have a will for your business? Sole proprietorships, partnerships and small closed corporations all need to consider what happens if the owner or one of the partners or shareholders dies or becomes disabled. Who will purchase the company or the deceased partner’s or shareholder’s interest? What is a fair price? When will the sale be made? Will the deceased or disabled owner’s/partner’s/shareholder’s families be given a fair stake and taken care of? These are real questions every small business should deal with before the event occurs. The business itself may also suffer form a supplier’s or creditor’s perception of the value of the deceased person to the success of the business. Key employees may consider the death as a reason to move elsewhere. There needs to be continuity and a smooth transition in the business when tragic events such as deaths or disabilities occur. The buy-sell agreement is important to resolve a lot of problems dealing with employees, creditors, suppliers, and the deceased person’s family. Importantly, where will the funds come from to provide continuity and a smooth transition? Everyone is going to die and sometimes it happens totally unexpectedly and at a much younger age than expected. There are no dying rules specific to owners, partners and shareholders. Stuff happens! A buy-sell agreement is, essentially, the will for the business and it eliminates a lot of difficulties and heartaches when a key person dies. A plan needs to be in place and a method of funding that plan must also be available
Group Insurance (Employee Benefits):
Finding quality employees is only part of the challenge of running a successful business. Maintaining a well motivated staff is probably a more difficult challenge. In today’s labour market the quality of benefits offered by the employer is a substantial consideration for both prospective and current employees. They are also interested in retirement and security for their families and often they look at the size of the benefit in contrast to their out-of-pocket costs.
Travel Insurance:
Covers the cost of medical care if you or your family become injured or ill during your trip outside Canada or if your family and friends visiting you from outside Canada become injured or ill during their visit to Canada. Travel Insurance offers the following plans, emergency medical, travel Canada emergency medical, trip cancellation & Interruption, all Inclusive.
Medical / Dental insurance:
Medical / Dental insurance: is designed to fill the gaps left in your government health insurance plan. Whether your focus is prescription drugs, dental care, or a combination of both
Private Health Services Plan:
In the 1998 Federal Budget, the Honourable Paul Martin improved a law (Section 248[1]) that allowed businesses to pay for their employee’s dental and medical costs and deduct those costs. Then, by running these expenses through a third-party Trust, the business could have the employee’s receive these benefits tax free – while avoiding group insurance company’s added ‘margins’. These costs are either paid out directly to the medical practitioner or are reimbursed to the employee directly, from the third-party Trust. This is an employee benefit that allows businesses to offer medical and dental coverage to their employees in a cost efficient and cost–controlled manner. Employers who are ‘employees’ by nature of their business being an incorporated company may take advantage of the plan. Incorporated one-man businesses may set up a plan without other employees. One-person Sole Proprietors may do so as well, but with certain limitations. This plan gives Cost Control to the business and Cash Control to the Employee – a ‘win-win’ situation for everyone in your business!!