Corporate-Owned Insurance
Running a business means planning for both the expected and the unexpected. Corporate-owned insurance is a smart strategy that enables your business to safeguard its financial health while offering flexibility, security, and even long-term financial benefits. These policies are tailored for incorporated business owners looking to safeguard their enterprise and maximize corporate dollars.
Coverage Options
Funding the Shareholder Agreement:
Life insurance can be used to fund a shareholder agreement, ensuring a smooth transition of ownership if a shareholder passes away, and providing the surviving shareholders with the funds needed to buy out the deceased’s share.
Buy-Sell / Key Person Coverage:
Buy-sell insurance protects the business by funding ownership transfers after a key partner’s departure or death, while key person insurance provides financial support to help replace lost revenue or cover hiring costs when a critical team member is no longer around.
Business Overhead Insurance:
This coverage helps business owners keep operations running smoothly during an illness or injury by covering fixed monthly expenses like rent, salaries, and utilities, allowing you time to recover without financial strain.
Coverage Options
Overfunding Whole Life Policies:
Whole life policies owned by the corporation can be overfunded to build significant cash value, creating a tax-efficient asset on the company’s books while maintaining a valuable death benefit for future planning.
Using Insurance to Supplement Retirement:
Corporate-owned policies can serve as a retirement supplement, allowing you to access tax-advantaged funds through policy loans or withdrawals while preserving the death benefit for your estate or business succession.
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.
Protecting your business with corporate owned insurance not only secures your company’s future—it also opens the door to powerful planning opportunities. Ready to explore what’s possible for your business? Contact Mathew to start the conversation.