“We respect that you, the young farmer, have decided to dedicate you and your family’s lives to feeding the world. We understand the challenges and risks that farm families face and the complexities of generational transitions. We are here to advise and support you throughout some of the complex farm estate planning issues that many young farmers are faced with.”
You have got a lifetime of farming ahead of you, but accidents happen, and we have seen our fair share. We recommend that you cover all of your farm debt with term life insurance. If you manage your debt with one policy, you won’t ever have to worry about insurance from loan to loan. This will seriously simplify your coverage and, more than likely, decrease your overall insurance costs.
Please, if you purchase loan insurance on your farm debt, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved ones need are to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your Agricultural lenders’ office after answering a few questions, do not expect that insurance to be cost-effective or comprehensive. Avoid the chances of your family paying dearly for what you thought was simply a convenience.
You should be proactive about shifting the farm’s debt risk to your generation so that your parents or partners can refocus their life insurance needs on permanent life insurance solutions to solve tax issues or to create inheritances for your non-farm affiliated siblings.
Losing a farm partner, sibling, or parent is emotional and hard enough. The last thing you need is the burden of having to come up with the cash to purchase the shares from your deceased partner’s spouse or estate. We always recommend that you insure your partners or siblings for the value of their shares and that they purchase the same for you. This ensures that there are adequate funds for you to purchase and retain control of your farmland.
The days of deferring Capital gains taxes on farms worked great when the average farm was a lot smaller. The Capital Gains Exemption used to be enough to ensure that the next generation would receive a tax-free farm. This is no longer the case as the average size farm is much larger, and the price of land continues to increase.
Please do not wait for years to discuss tax plans with your parents or partners as you transition into the farm. A properly structured life insurance policy on your parents or family partners is one of the most effective tax planning tools that farms have access to. This allows you to plan for capital gains taxes. Remember that it is a luxury to be able to defer the farm’s capital gains taxes indefinitely. We want you to realize that it’s not out of the question for the government to eventually cap or eliminate this program, so we recommend farms start planning for it.
When non-farm affiliated individuals are left with land that you actively farm, it can create unintended problems. Situations like these are the ones we want to navigate you away from.
The ideal situation is when your non-farming siblings or family members get personal assets or cash, but they don’t always exist. It is typical for farms to continue reinvesting and growing the operation, which creates little to no liquid cash to facilitate inheritances for the non-farm affiliated.
It is unlikely that you will find a more tax-effective way of creating liquidity than a farm/corporate-owned life insurance policy on your parents or partners. This is a discussion you should be having with your parents or partners, along with knowing if they have existing life insurance policies in place that can help you create what you need to facilitate inheritances for the non-farm affiliated. If they do, and they haven’t been reviewed in years, kindly let us know and we’ll help you understand them and repurpose them so that they help the farm transition.
As you get older, you take on more responsibility and ownership. Your parents start to participate less, and the farm begins paying them a retirement or they begin withdrawing personal retirement funds. What about the money stuck in their holding or operating company?
We see it repeatedly where farm operating companies let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of tax liability. We can structure life insurance policies to completely deplete corporate capital and overfund the policy so that the corporations’ investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-farm affiliated children or to pay down capital gains taxes, or to simply enhance the value or their trapped wealth.
If you are insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
The risks of being diagnosed with a critical illness or injury throughout your life on the farm are real, but often overlooked at your age. If you became critically ill or injured to the point of losing your independence, does the farm have the ability to pay you and to take care of itself? Would you need a way to cash flow the farm bills and operational costs?
If you’re diagnosed with one of the covered illnesses or injuries, the Critical Illness insurance policy will pay you or the farm a tax-free benefit that can be used to maintain the farm’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your farm corporation. The farm will pay for, as well as benefit from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income, meaning that if you decide to cancel the policy or the policy expires, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the farm corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
You’re constantly working around equipment that could injure and disable you in a heartbeat; and let’s face it, farm accidents happen. Could your farm business operate without you? Do you have a plan if you weren’t able to work due to an illness or accident? Does the farm need the added financial pressure of having to pay you an income if you’re disabled for a long period of time?
Disability insurance will guarantee that if you cannot perform the important duties of your job on the farm, then you’ll receive a monthly benefit that reflects the income you’re used to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to the farm and review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“We want to acknowledge and recognize you for committing your life to building, growing, and sustaining your farm that feeds people around the globe. These are the years where countless hours of hard work translate into watching your farm and family grow. These are also the years where your children start defining themselves as the next generation to farm. It is important to focus on protecting the growth, but you also need to start thinking about who is and isn’t going to be the next generation to farm your land.”
You are a key person in the farm, and you’re responsible for making significant financial decisions that draw on a lot of farm debt. We recommend you cover all of your farm debt with term life insurance. If you manage your debt with one policy, you won’t have to worry about your insurance from loan to loan. This will seriously simplify your coverage and, more than likely, decrease your overall insurance costs.
Please, if you purchase loan insurance on your farm debt, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved ones need are to face scrutiny from an insurance company while trying to file a claim. Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made.
When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your Agricultural lenders’ office after answering a few questions, do not expect that insurance to be cost-effective or comprehensive. Avoid the chances of your family paying dearly for what you thought was simply a convenience.
We would like to kindly remind you that, while insuring your debt is important, the farm’s debt risk should eventually be shifting to your children so that you can refocus your life insurance needs on tax and estate planning.
Losing a farm partner, sibling, or parent is emotional and hard enough. The last thing you need is the burden of having to come up with the cash to purchase the shares from your deceased partner’s spouse or estate. We always recommend that you insure your partners or siblings for the value of their shares and that they purchase the same for you. This ensures that there are adequate funds for you to purchase and retain control of your farmland.
This strategy is usually implemented with term life insurance policies. However, if it is obvious that you’re going to be farming with your sibling or partners for a long-term period, you may want to consider purchasing permanent life insurance on each other, especially if you or your partner do not have children that are active in the farm. At some point in time, your active farming children or theirs are going to have to fund the purchase of land from the non-active farming side and life insurance proceeds can help facilitate this transaction.
The days of deferring Capital gains taxes on farms worked great when the average farm was a lot smaller. Capital gains exemptions use to be enough to ensure that the next generation would receive a tax-free farm. This is no longer the case as the average size farm is much larger, and the price of land continues to increase.
You need to determine if you’re going to defer the capital gains taxes to the next generation or if you want to create a solution that will eat up a chunk of those taxes upon death. Joint last-to-die insurance policies work perfectly when solving this problem and can often pay a $4 to $5 net tax bill for every $1 of capital the farm is willing to contribute to the policy.
Please remember that it is a luxury to be able to defer the farm’s capital gains taxes indefinitely. We want you to realize that it’s not out of the question for the government to eventually cap or eliminate this program.
When non-farm affiliated individuals are left with land that you actively farm, it can create unintended problems and consequences. Situations like these are the ones we want to navigate you away from.
The ideal situation is when your non-farming siblings or family members get personal assets or cash, but these don’t always exist. It is typical for a farm to continue reinvesting and growing the operation, which creates little to no liquid cash to facilitate inheritances for the non-farm affiliated.
It is unlikely that you will find a more tax-effective way of creating liquidity than a farm/corporate-owned life insurance policy on your parents or partners. This is a discussion you should be having with your parents or partners, along with knowing if they have existing life insurance policies in place that can help you create what you need to facilitate inheritances for the non-farm affiliated. If they do, and they haven’t been reviewed in years, kindly let us know and we’ll help you understand them and repurpose them so that they re-align with the farm’s estate plan.
Whether it’s your farm company or your parents, you need to start paying attention to capital accumulation. It could be that you’re comfortable with the size of your farm and done growing, or that your parents are winding up. Both of these usually result in excess capital, which translates directly into tax liability.
We see it repeatedly where farm-operating companies let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of tax liability. We can structure life insurance policies to completely deplete corporate capital, or we can overfund policies so that the corporations’ investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-farm affiliated children or to pay down capital gains taxes.
If you’re insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
As a key person in your farming operation, you need to understand that the risks of encountering a critical illness or injury throughout your lifetime is real. If you became critically ill or injured to the point of losing your independence, does the farm have the ability to pay you and to take care of itself? Would you need a way to cash flow the farm bills and operational costs?
If you’re diagnosed with one of the covered illnesses or injuries, the Critical Illness insurance policy will pay you or the farm a tax-free benefit that can be used to maintain the farm’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your business or Professional Corporation. The professional or business corporation pays for, and benefits from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income. This means that if you decide to surrender the policy after it has matured, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
You’re constantly working around equipment that could injure and disable you in a heartbeat; and let’s face it, farm accidents happen.
Could your farm business operate without you? Do you have a plan if you weren’t able to work due to an illness or accident? Does the farm need the added financial pressure of having to pay you an income if you’re disabled for a long period of time?
Disability insurance will guarantee that if you cannot perform the important duties of your job on the farm that you’ll receive a monthly benefit that reflects the income you’re used to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to the farm and review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“You have built a legacy by devoting your life to the farm. The blood, sweat, and tears are paying off as you watch your family grow into the farm that you have built for them. It is crucial that you begin the dialogue with the farming and non-farming children so that your legacy lives on in the most inspiring manner possible. This isn’t an easy conversation to have, but we have them with farms like yours all the time, and we’re always here for advice.”
We recommend you cover all of your farm debt with term insurance life insurance. If you manage your debt with one policy, you won’t have to worry transfering your insurance from loan to loan. This will seriously simplify your coverage and more than likely save you substantial amounts of money on premiums. If you are relying on loan insurance, you should be aware that with age come issues when you attempt to insure your debt with your Agricultural lender. Your option to insure your loans usually ends at age 65, and if you have life insurance on your loans prior to age 65, then your coverage will likely expire at age 70. If protecting your debt is important, then you need to be proactive and start considering your options outside of farm loan insurance before these issues occur.
Please, if you purchase loan insurance on your farm debt, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved ones need are to face scrutiny from an insurance company while trying to file a claim. Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your Agricultural lenders’ office after answering a few questions, do not expect that insurance to be cost-effective or comprehensive. Avoid the chances of your family paying dearly for what you thought was simply a convenience.
Losing a farm partner, sibling, or parent is emotional and hard enough. The last thing you need is the burden of having to come up with the cash to purchase the shares from your deceased partner’s spouse or estate. We always recommend that you insure your partners or siblings for the value of their shares and that they purchase the same for you. This ensures that there are adequate funds for you to purchase and retain control of your farmland.
This strategy is usually implemented with term life insurance policies. However, if it is obvious that you’re going to be farming with your sibling or partners for a long-term period, you may want to consider purchasing permanent life insurance on each other, especially if you or your partner don’t have children that are active in the farm. At some point in time, the active farming children are going to have to fund the purchase of land from the non-active farming side, and life insurance proceeds can help facilitate this transaction.
The days of deferring Capital gains taxes on farms worked great when the average farm was a lot smaller. Capital gains exemptions used to be enough to ensure that the next generation would receive a tax-free farm. This is no longer the case as the average size farm is much larger, and the price of land continues to increase. One life insurance policy could determine whether the next generation farms a tax-free farm or inherits a Capital gains tax bill. You need to proactively explore this option.
Please remember that it is a luxury to be able to defer the farm’s capital gains taxes indefinitely. We want you to realize that it is not out of the question for the government to eventually cap or eliminate this program.
As you near retirement, your children gain more responsibility and ownership. You start to participate less, and the farm starts paying you a retirement, or you begin withdrawing funds from your personal retirement accounts. What about the money stuck in your holding or operating company?
We see it repeatedly where farm-operating companies let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of tax liability. We can structure life insurance policies to completely deplete corporate capital, or we can overfund policies so that the corporations’ investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-farm affiliated children or to pay down capital gains taxes.
If you’re insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
When non-farm affiliated children or family members inherit shares or farm assets, it can create unintended issues. The ideal situation is when non-farming siblings or family members get personal assets or cash, but these do not always exist. It is typical for farm businesses and corporations to continue reinvesting and growing the operation, which results in little to no liquid cash to facilitate inheritances for the non-farm affiliated.
Life insurance is such a simple solution to what is usually viewed as a complex and stressful problem. Sit down with your children or family members, agree to an amount required to create the inheritance for the non-farm affiliated, purchase the policy, and you’re done. No more worrying about how this is going to be handled in the future.
With the utmost respect, it doesn’t matter how successful you are or how much wealth you have created. If you do not distribute it properly, it can have a devastating effect and we have all witnessed the outcomes of other farms who failed to do so. No one wants to be remembered as the person who did no planning and has family who no longer talk. Take the time, have the discussions, and leave the
most meaningful legacy you possibly can.
Let us customize a policy to take care of this problem so that you can focus on more important things, like growing your farm.
45% of women and 49% of men in Canada will develop cancer in their lifetime.
9 in 10 Canadians have at least one risk factor for heart disease or stroke.
As the key person in your farming operation, you need to understand that the risks of encountering a critical illness or injury throughout your lifetime is real. If you became critically ill or injured to the point of losing your independence, does the farm have the ability to pay you and to take care of itself? Would you need a way to cash flow the farm bills and operational costs?
If you’re diagnosed with one of the covered illnesses or injuries, the Critical Illness insurance policy will pay you or the farm a tax-free benefit that can be used to maintain the farm’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your business or Professional Corporation. The professional or business corporation pays for, and benefits from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income. This means that if you decide to surrender the policy after it has matured, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
You’re constantly working around equipment that could injure and disable you in a heartbeat; and let’s face it, farm accidents happen.
Could your farm business operate without you? Do you have a plan if you weren’t able to work due to an illness or accident? Does the farm need the added financial pressure of having to pay you an income if you’re disabled for a long period of time?
Disability insurance will guarantee that if you cannot perform the important duties of your job on the farm that you’ll receive a monthly benefit that reflects the income you’re used to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to the farm and review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options. We can facilitate your conversion option for you if you require it.
“You are young, and we wish you all the success in the world with your health, your family, and your career. Your ability to earn an income is one of the most important tools you have. Your income provides you with the ability to maintain your family’s standard of living, to pay your mortgage, and to save for your retirement. We understand the risks that come with providing for yourself, your family, and your retirement, and we are here to help you protect them.”
Purchasing a home is one of the most significant financial decisions you will ever make. The home you purchase will be the home you grow memories in while raising your family. Providing a home for your family comes with the financial responsibilities of paying your mortgage and all of the other ongoing bills like utilities and insurances.
Remember, your income is what gives you the ability to provide financial security for your family, and you need to protect it. You need to realize that if you were gone tomorrow, the costs associated with paying your mortgage and your bills still exist.
Please, if your mortgage is insured through your bank or your mortgage broker, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved one needs is to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your bank or mortgage brokers’ office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive. Your family could pay dearly for what you thought was simply a convenience.
Whether it is your children or your spouse, your family depends on the income that you bring into the household. Most people focus their life insurance needs on debt protection, while a few take into considering the ongoing costs to raise children or to support a financially dependent spouse.
The stronger your income, the more impact it would have on your household if it were to disappear. Our planning includes and calculates not only the repayment of your debt upon death, but also the costs associated with keeping your family financially healthy if they were to lose you.
Most young individuals do not look at life insurance as a means of investing or retirement planning, but the truth is, Universal Life and Whole Life insurance policies can both accumulate substantial amounts of cash/investment value within them. During retirement, you can consider accessing the cash within your policies to enhance your retirement. If the cash or investment is not needed, the policy becomes a legacy that you leave your children.
It is unimaginable to ever consider profiting from the death of one of our children, and it is something we never want to think about. The logical reason for purchasing policies on our children is to guarantee their insurability. It is all about locking in policies before they ever get a chance to become unhealthy. The fact is, it is becoming more challenging to keep our children physically active, and childhood diabetes runs rampant in our society.
When they become adults, you can transfer the ownership and payment of the policy to them, instilling responsibility. Children can also access cash within their policies to fund university or to purchase their first home.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
The risks of being diagnosed with a critical illness or injury throughout your life are real, but potentially overlooked at your age. If you became critically ill or injured to the point of losing your independence, what is your family going to do? Who is going to look after the mortgage and all the bills? Where are you going to get money from while you are off of work? Who is going to pay for special treatment you might need?
Critical illness insurance is designed to pay you a lump sum cash benefit if you are diagnosed with a covered critical illness or injury. This will ensure you and your family have adequate funds to support your rehabilitation and your ongoing financial expenses.
Here is the BEST part! Critical Illness insurance comes with a feature called Return of Premium on expiry. If you do not make a claim throughout the life of your policy, you get EVERY dime back in a cheque when you surrender or cancel the policy after year 15. This is a great alternative for building savings or retirement money that you cannot touch for 15 years!
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Could you support yourself and your family without an income? Do you have a realistic plan if you were unable to work due to an illness or accident?
Your ability to earn an income is the most valuable asset you own, and we recommend you protect it. Losing the ability to earn that income or having to do a job for a lesser income is devastating, and it can have an extremely stressful effect on you and your family’s living situation.
Disability insurance is designed to pay you a monthly income to reflect the income you were earning prior to becoming ill or injured. This ensures that you will be able to cash flow all of your bills from month to month until you can return to work, or if it is a long-term disability, they pay you a monthly benefit to age 65.
Please note that all group insurance disability plans are not built equal. Many group disability insurance plans do not cover you for the maximum amount of disability insurance that you qualify for. We are more than happy to review your group insurance plan to determine if your disability insurance coverage can be topped up.
If you have not seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they are no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“You are well established in your career, and you have enjoyed watching your family grow. Your lifestyle is a by-product of your income and plays a fundamental role in being able to provide for your family, pay mortgage obligations, and save for your retirement. We understand the risks that come with providing for yourself, your family, and your retirement, and we are here to help you protect them.”
Whether you have been a homeowner for years, or are preparing to make your first purchase, providing a home for your family comes with a lot of financial responsibilities.
Remember, your income is what gives you the ability to provide financial security for your family, and you need to protect it. You need to realize that if you were gone tomorrow, the costs associated with paying your mortgage and your bills still exist.
Please, if your mortgage is insured through your bank or your mortgage broker, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us.
Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved one needs is to face scrutiny from an insurance company while trying to file a claim. Purchase fully underwritten insurance products through us and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made.
When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your bank or mortgage brokers’ office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive. Your family could pay dearly for what you thought was simply a convenience.
Whether it is your children or your spouse, your family depends on the income that you bring into the household. Most people focus their life insurance needs on debt protection, while a few take into considering the ongoing costs to raise children or to support a financially dependent spouse.
The stronger your income, the more impact it would have on your household if it were to disappear. Our planning includes and calculates not only the repayment of your debt upon death, but also the costs associated with keeping your family financially healthy if they were to lose you.
Life insurance policies are a great way to accumulate excess cash for your retirement. Universal Life and Whole Life insurance policies can both accumulate substantial amounts of cash/investment value within them. During retirement, you can consider accessing the cash within your policies to enhance your retirement. If the cash or investment is not needed, the policy becomes a legacy that you leave to your family.
Throughout your life, you’re told to put money away into RRSPs and to contribute to your pension, which are good things. These accounts allow us to decrease our taxable income, and tax defers the growth of our investments. The problem is, these registered investment accounts become huge tax liabilities the older we get. Remember, when you pass away, all of these accounts are added up and taxed as income in the year of death. You can address these risks by purchasing life insurance to offset the taxes.
There will be a time when you no longer need life insurance to protect debt because you have paid it all off. Nor will you need life insurance to protect your family because they have all grown up and are no longer financially dependent. This is when your need for life insurance shifts toward determining if you are going to leave a legacy or inheritance with life insurance proceeds or not. Debt and family protection are usually covered by term life insurance, which is not a form of permanent life insurance. If it is important for you to leave money with a life insurance policy, then you need to realize it is time to shift your life insurance from term insurance to permanent life insurance. We are here to guide you through these changes.
It is unimaginable to ever consider profiting from the death of one of our children/grandchildren, and it is something we never want to think about. The logical reason for purchasing policies on our children/grandchildren is to guarantee their insurability. It is all about locking in policies before they ever get a chance to become unhealthy.
The fact is, it is becoming more challenging to keep our children/grandchildren physically active, and childhood diabetes runs rampant in our society. When they become adults, you can transfer the ownership and payment of the policy to them, instilling responsibility. Children can also access cash within their policies to fund university or to purchase their first home.
45% of women and 49% of men in Canada will develop cancer in their lifetime.
9 in 10 Canadians have at least one risk factor for heart disease or stroke.
As we age, the risks of being diagnosed with a critical illness or injury increase substantially. If you became critically ill or injured to the point of losing your independence, what is your family going to do? Who is going to look after the mortgage and all the bills? Where are you going to get money from while you’re off of work? Who is going to pay for special treatment you might need?
Critical illness insurance is designed to pay you a lump sum cash benefit if you are diagnosed with a covered critical illness or injury. This will ensure you and your family have adequate funds to support your rehabilitation and your ongoing financial expenses.
Here is the BEST part of Critical Illness insurance. It comes with a feature or rider called Return of Premium on expiry. If you don’t make a claim throughout the life of your policy, you get EVERY dime back in a cheque when you surrender or cancel the policy after year 15. This is an excellent alternative for building savings or retirement money that you cannot touch for 15 years!
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Could you support yourself and your family without an income? Do you have a realistic plan if you were unable to work due to an illness or accident?
Your ability to earn an income is the most valuable asset you own, and we recommend you protect it. Losing the ability to earn that income or having to do a job for a lesser income is devastating, and it can have an extremely stressful effect on you and your family’s living situation.
Disability insurance is designed to pay you a monthly income to reflect the income you were earning prior to becoming ill or injured. This ensures that you will be able to cash flow all of your bills from month to month until you can return to work, or if it is a long-term disability, they pay you a monthly benefit to age 65.
Please note that all group insurance disability plans are not built equal. Many group disability insurance plans do not cover you for the maximum amount of disability insurance that you qualify for. We are more than happy to review your group insurance plan to determine if your disability insurance coverage can be topped up.
If you have not seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they are no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“Whether you are retired or getting close, you deserve it, and we want to recognize you for the decades you have spent in your career. You have earned the right to spend your retirement years the way you have always dreamed of. What you do not spend will become a legacy for your children and grandchildren and we are here to help you protect and maximize that legacy. With pension and RRSP money come tax risks. We want to make you aware of these risks and help you navigate around them.”
Insuring your mortgage and personal debt should still be of importance to you. The last thing you want is for your debt to be assumed by your children or family in the event of death. At your age, you should be exercising caution regarding life insurance products to protect your debts as certain products are going to cost you substantially more than others.
Please, if your mortgage is insured through your bank or your mortgage broker, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, which is scary. The last thing your loved one needs is to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your bank or mortgage brokers’ office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive. Your family could pay dearly for what you thought was simply a convenience.
Whether it is your dependent children or your spouse, your family depends on the income that you bring into the household. Most people focus their life insurance needs on debt protection, while a few take into considering the ongoing costs to raise dependent children or to support a financially dependent spouse.
The stronger your income, the more impact it would have on your household if it were to disappear. Our planning includes and calculates not only the repayment of your debt upon death, but also the costs associated with keeping your family financially healthy if they were to lose you.
No one, typically, looks at life insurance as a means of investing or retirement planning, but the truth is, Universal Life and Whole Life Insurance policies are a great way to accumulate cash for retirement. Whether it’s one or the other, both of these types of life insurance grow tax-free. The only additional investment vehicle like this is a tax-free savings account. The reality is, if used properly, your life insurance policy can act as a secondary means of growing your money tax-free. In the future, if the cash or investment is not needed, the policy becomes a legacy that you leave to your loved ones.
Throughout your life, you’re told to put money away into RRSPs and to contribute to your pension, which are good things. These accounts allow us to decrease our taxable income, and tax defers the growth of our investments. The problem is, these registered investment accounts become huge tax liabilities the older we get. Remember, when you pass away, all of these accounts are added up and taxed as income in the year of death. You can address these risks by purchasing life insurance to offset the taxes.
There will be a time when you no longer need life insurance to protect debt because you have paid it all off. Nor will you need life insurance to protect your family because they have all grown up and are no longer financially dependent. This is when your need for life insurance shifts toward determining if you are going to leave a legacy or inheritance with life insurance proceeds or not. Debt and family protection are usually covered by term life insurance, which is not a form of permanent life insurance.
If it is important for you to leave money with a life insurance policy, then you need to realize it is time to shift your life insurance from term insurance to permanent life insurance. We are here to guide you through these changes.
It is unimaginable to ever consider profiting from the death of one of our children/grandchildren, and it is something we never want to think about. The logical reason for purchasing policies on our children/grandchildren is to guarantee their insurability. It is all about locking in policies before they ever get a chance to become unhealthy.
The fact is, it is becoming more challenging to keep our children/grandchildren physically active, and childhood diabetes runs rampant in our society. When they become adults, you can transfer the ownership and payment of the policy to them, instilling responsibility. Children/Grandchildren can also access cash within their policies to fund university or to purchase their first home.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
As we age, the risks of being diagnosed with a critical illness or injury increase substantially. If you became critically ill or injured to the point of losing your independence, what is your family going to do? Who is going to look after the mortgage and all the bills? Where are you going to get money from while you’re off of work? Who is going to pay for special treatment you might need?
Critical illness insurance is designed to pay you a lump sum cash benefit if you are diagnosed with a covered critical illness or injury. This will ensure you and your family have adequate funds to support your rehabilitation and your ongoing financial expenses.
Here is the BEST part of Critical Illness insurance. It comes with a feature or rider called Return of Premium on expiry. If you don’t make a claim throughout the life of your policy, you get EVERY dime back in a cheque when you surrender or cancel the policy after year 15. This is a great alternative for building savings or retirement money that you cannot touch for 15 years!
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Could you support yourself and your family without an income? Do you have a realistic plan if you were unable to work due to an illness or accident?
Your ability to earn an income is the most valuable asset you own, and we recommend you protect it. Losing the ability to earn that income or having to do a job for a lesser income is devastating, and it can have an extremely stressful effect on you and your family’s living situation.
Disability insurance is designed to pay you a monthly income to reflect the income you were earning prior to becoming ill or injured. This ensures that you will be able to cash flow all of your bills from month to month until you can return to work, or if it is a long-term disability, they pay you a monthly benefit to age 65.
Please note that all group insurance disability plans are not built equal. Many group disability insurance plans do not cover you for the maximum amount of disability insurance that you qualify for. We are more than happy to review your group insurance plan to determine if your disability insurance coverage can be topped up.
If you have not seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“Whether you are a young professional or entrepreneur, the dedication, commitment, and hard work has been unrelenting. We acknowledge the sleepless nights you have spent studying, and the endless hours you have spent in the start-up phases of your business or practice. We have faith that your perseverance will generate a comfortable income and the accumulation of wealth. We want to help you protect those things.”
You have a long and successful career ahead of you; however, be mindful that accidents happen. God forbid you or a partner were to pass away, nobody wants to be burdened with outstanding business debt. Ensuring your business debt is fundamental, and we want to help you protect it properly.
Let us simplify your debt protection by covering all your business debt with a term life insurance policy and put the control of your life insurance back in your hands. Remember, you control the terms of a life insurance policy purchased to protect your debt, and with it comes options and features. When you rely on creditor insurance from your lender, you control nothing.
Please, if your business debt is insured with your lender’s creditor insurance product, realize how expensive this creditor insurance is as opposed to the insurance products you can access through us. Understand that all creditor products are underwritten upon the time of death, and that’s scary. The last thing your loved ones or business partners need is to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your banker’s office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive.
If you are involved in a family business, the debt risk should be shifting to your generation so that the older generation can refocus their life insurance needs on permanent life insurance solutions to solve tax issues or to create inheritances for your non-business affiliated siblings.
Losing a business partner is emotional and never easy to deal with. The last thing you need is the burden of having to come up with the cash to purchase the shares or assets from your deceased partner’s spouse or family members. We always recommend that you ensure your business partners’ life for the value of their shares and that they ensure your life for the same. This ensures that there are adequate funds to buy back the shares or assets and retain control of the business.
This strategy is usually implemented with term life insurance policies. However, if it is obvious that you are going to be in business with your existing partners for a long-term period, you may want to consider purchasing permanent life insurance on each other, especially if you or your partner do not have children that are active in the business. At some point in time, whoever has the children who are successors to the business are going to have to come up with a solution to buy the shares or assets from the non-active partners’ estate, and life insurance proceeds can help facilitate this transaction.
Whether you are stepping into a family-owned business, starting your own business, or affiliated with a professional practice, you need to understand the future implications of capital gains taxes, whether it pertains to yours, your parents, or partners’ shares. Neither you nor they have the luxury of deferring capital gains taxes.
The question then becomes, what are the plans if you or other partners or shareholders do not have enough capital gains exemption to cover capital gains taxes? Does this tax issue get left to the estate, or do we integrate planning beforehand?
No one enjoys tax bills looming over us, so it is human nature for us to want to pay taxes off as quickly as they’re owed, regardless of whether they are immediately owed or payable upon death or disposition. This psychological reaction leads people to make ineffective financial decisions, like drawing excess corporate cash to pay capital gains tax bills.
If you, your parents, or partners are actively paying down the capital gains tax, we recommend reconsidering strategies. If you or they are insurable, then explore the option of paying the capital gains tax bill with life insurance proceeds. No tax tool or mechanism comes even close to being as tax-effective or cost-effective as corporate-owned life insurance.
When non-business affiliated individuals inherit shares or business assets, it can create unintended issues. We can provide strategies that help navigate you away from situations like this.
The ideal situation is when non-business affiliated siblings or family members get personal assets or cash, but these do not always exist. It is typical for a business or professional corporation to continue reinvesting, deferring, and growing the operation, which results in little to no liquid cash to facilitate inheritances for the non-business affiliated.
Life insurance is such a simple solution to what is usually viewed as a complex and stressful problem. Sit down with your family members, agree to an amount required to create the inheritance for the non-business affiliated, purchase the policy, and you’re done. No more worrying about how this is going to be handled in the future. Let us customize a policy to take care of this problem so that you can focus on more important things, like growing your business.
At your age, you need to start educating yourself on advanced corporate tax strategies so that you can identify and forecast when they need to be implemented ahead of time.
We see it repeatedly where shareholders let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of a tax liability.
We want you to know that passive investments do not have to sit in taxable corporate investment vehicles. We also want to remind you that it is not likely that your bank, wealth, or investment advisor is going to advise you to move your passive income out of their management and into the tax-sheltered investment account within a life policy. We’ll let you draw conclusions as to why.
We can structure life insurance policies to completely deplete taxable corporate capital and/or overfund the policy so that the corporations’ passive investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death, as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-business affiliated children, to pay down capital gains taxes, or to simply enhance the value of their trapped wealth.
If you are insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
As humans, the risks of us breaking down are no different than the tangible assets our business uses to generate income.
It is important to understand that assets vital to the success of your business or practice should be insured. Premises are routinely covered for fire and/or theft; vehicles and equipment used to complete contracts, insured; machinery needed for manufacturing, also insured. Given that these tangible assets are instrumental in the success of the business, it makes good business sense that the business is protected in the event of a loss. But what about key employees? Many business owners overlook the impact on their business should a key employee die unexpectedly.
If your business or practices’ continued success is dependent on key people, it would be prudent to ensure all key personnel whose death or incapacity would negatively affect the profitability. Insuring against the death, disability, and critical illness of a key person are all important.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
You’re young, but don’t take your health for granted. Our health can be blindsided so quickly by illness or injury, and either can render you temporarily or permanently incapable of carrying on your business. The risks of being diagnosed with a critical illness or injury throughout your life as a professional or business owner are severe and should not be overlooked.
If you became critically ill or injured, does your business have the cash to continue paying your income and to maintain the daily costs of your operation? Would you need a way to cash flow the business bills and operational costs while you recover or seek private treatment or rehabilitation services?
If you are diagnosed with a covered illness or injury, Critical Illness insurance will pay you or the business a tax-free benefit that can be used to maintain your business’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your business or Professional Corporation. The professional or business corporation pays for, and benefits from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income. This means that if you decide to surrender the policy after it has matured, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Think of how much time and money you’ve spent on your education to earn the income you earn. Think of the endless hours and capital you have invested in your business to earn the income you earn. Now think about that income disappearing overnight in a bad car accident, or a diagnosis of a degenerative disease. You are too young to roll the dice with decades of lost income. You are too young to risk yours and your family’s financial security.
Hedge the risks of losing your income by allowing us to customize a disability plan that is right for you. This guarantees that if you cannot perform the essential duties of your occupation that you will receive a monthly benefit that reflects the income you and your family are accustom to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to turn your term policy into a permanent life insurance policy with no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they are no longer insurable and are now left with no options. We can facilitate your conversion option for you, if you require it.
“After years of commitment and dedication, your Professional Corporation or businesses are established. You have earned the right to create your wealth and to live comfortably with your income. Kindly remember that you are fundamental to the success of your business, and its future depends on you. So does your family’s standard of living. We want to help you protect these things.”
You are the Chief financial decision-maker, and you determine the financial risks associated with growing and expanding. God forbid you or a partner were to pass away, nobody wants to be burdened with outstanding business debt. Ensuring your business debt is fundamental, and we want to help you protect it properly.
Let us simplify your debt protection by covering all your business debt with a one-term life insurance policy and put the control of your life insurance back in your hands. Remember, you control the terms of a life insurance policy purchased to protect your debt, and with it comes options and features. When you rely on creditor insurance from your lender, you control nothing.
Please, if your business debt is insured with your lender’s creditor insurance product, realize how expensive this creditor insurance is versus the insurance products that we can provide you with. Understand that all creditor products are underwritten upon the time of death, and that’s scary. The last thing your loved ones or business partners need is to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your banker’s office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive.
If you are involved in a family business, the debt risk should be shifting to your generation so that the older generation can refocus their life insurance needs on permanent life insurance solutions to solve tax issues or to create inheritances for your non-business affiliated siblings.
Losing a business partner is emotional and never easy to deal with. The last thing you need is the burden of having to come up with the cash to purchase the shares or assets from your deceased partner’s spouse or family members. We recommend that you insure your business partners’ life for the value of their shares and that they insure your life for the same. This ensures that there are adequate funds for you to buy back the shares or assets and retain control of your business.
This strategy is usually implemented with term life insurance policies. However, if it is obvious that you are going to be in business with your existing partners for a long-term period, you may want to consider purchasing permanent life insurance on each other, especially if you or your partner do not have children that are active in the business. At some point in time, whoever has the children who are successors to the business are going to have to come up with a solution to buy the shares or assets from the non-active partners’ estate, and life insurance proceeds can help facilitate this transaction.
Whether you are involved in a family business, private business, or private professional practice, you need to understand the future implications of capital gains taxes, whether it pertains to yours, your parents, or partners’ shares. Neither you nor they have the luxury of deferring capital gains taxes.
The question then becomes, what are the plans if you or other partners or shareholders do not have enough capital gains exemption to cover capital gain taxes? Does this tax issue get left to the estate, or do we integrate planning beforehand?
No one enjoys tax bills looming over us, so it is human nature for us to want to pay taxes off as quickly as they’re owed, regardless of whether they are immediately owed or payable upon death or disposition. This psychological reaction leads people to make ineffective financial decisions, like drawing excess corporate cash to pay capital gains tax bills.
If you, your parents, or partners are actively paying down the capital gains tax, we recommend reconsidering strategies. If you or they are insurable, then explore the option of paying the capital gains tax bill with life insurance proceeds. No tax tool or mechanism comes even close to being as tax-effective or cost-effective as corporate-owned life insurance.
When non-business affiliated individuals inherit shares or business assets, it can create unintended issues. We can provide strategies that help navigate you away from situations like this.
The ideal situation is when non-business affiliated siblings or family members get personal assets or cash, but these do not always exist. It is typical for a business or professional corporation to continue reinvesting, deferring, and growing the operation, which results in little to no liquid cash to facilitate inheritances for the non-business affiliated.
Life insurance is such a simple solution to what is usually viewed as a complex and stressful problem. Sit down with your family members, agree to an amount required to create the inheritance for the non-business affiliated, purchase the policy, and you’re done. No more worrying about how this is going to be handled in the future.
With the utmost respect, it doesn’t matter how successful you are or how much wealth you have created. If you do not distribute it properly, it can have a devastating effect. Do not be known as the person who did no planning and has a family who no longer talks. Take the time, have the discussions, and leave the most meaningful legacy you possibly can.
Let us customize a policy to take care of this problem so that you can focus on more important things, like growing your business.
As you age, you start to accumulate trapped wealth within your business or professional corporation, and you need to educate yourself on advanced corporate tax strategies so that you have tools to address these potential tax liabilities.
We see it repeatedly where shareholders let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of a tax liability. We want you to know that passive investments do not have to sit in taxable corporate investment vehicles. We also want to remind you that it is not likely that your bank, wealth, or investment advisor is going to advise you to move your passive income out of their management and into the tax-sheltered investment account within a life policy. We’ll let you draw conclusions as to why.
We can structure life insurance policies to completely deplete taxable corporate capital and/or overfund the policy so that the corporations’ passive investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death, as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-business affiliated children, to pay down capital gains taxes, or to simply enhance the value or their trapped wealth.
If you are insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
As humans, the risks of us breaking down are no different than the tangible assets our business uses to generate income.
It is important to understand that assets vital to the success of your business or practice should be insured. Premises are routinely covered for fire and/or theft; vehicles and equipment used to complete contracts, insured; machinery needed for manufacturing, also insured. Given that these tangible assets are instrumental in the success of the business, it makes good business sense that the business is protected in the event of a loss. But what about key employees? Many business owners overlook the impact on their business should a key employee die unexpectedly.
If your business or practices’ continued success is dependent on key people, it would be prudent to ensure all key personnel whose death or incapacity would negatively affect profitability. Insuring against the death, disability, and critical illness of a key person are all important.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
You are at an age in your life where the chances of being blindsided by severe health issues become much greater. Your business, your family, and possible employees depend on you to lead, but how do you lead if an injury or illness renders you temporarily or permanently incapable of doing so? If you became critically ill or injured, does your business have the cash to continue paying your income and to maintain the daily costs of your operation? Would you need a way to cash flow the business bills and operational costs while you recover or seek private treatment or rehabilitation services?
If you are diagnosed with a covered illness or injury, Critical Illness insurance will pay you or the business a tax-free benefit that can be used to maintain your business’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your business or Professional Corporation. The professional or business corporation pays for, and benefits from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income. This means that if you decide to surrender the policy after it has matured, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Think of the blood, sweat, tears, and money that have been invested in your business or professional practice to earn the income that you earn today. Now, think about that income disappearing overnight in an unfortunate car accident, or a diagnosis of a degenerative disease. You are entering the years where your health can be taken from you in a split second. Being disabled or unable to work is stressful enough on its own, and it doesn’t need to be amplified by potentially losing decades of income and forcing you to spend emergency or retirement money.
Hedge the risks of losing your income by allowing us to customize a disability plan that is right for you. This guarantees that if you cannot perform the essential duties of your occupation that you will receive a monthly benefit that reflects the income you and your family are accustom to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to with the stroke of a pen and no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options.
“You have built a legacy after devoting your life to your profession or business. The blood, sweat, and tears are coming to an end as you eventually consider winding up or watching your family grow into the business that you have created. It is crucial that you begin the dialogue with the business and none business children so that your legacy lives on in the most inspiring manner possible. This is not an easy conversation to have, but we have them with businesses like yours all the time, and we are always here for advice. The quicker you plan, the more effective your transfer of wealth will be.”
Insuring your business debt with term life insurance will always remain the most cost-effective way for you to guarantee debt repayment if death were to occur. However, with age comes issues when you attempt to insure your debt with your lender. Beware that your option to insure loans with your lender usually ends at age 65, and if you have life insurance on your loans prior to age 65, then your coverage will likely expire at age 70. If protecting your debt is important, then you need to be proactive and start considering your options outside of business loan insurance before these issues occur.
Please, if your business debt is insured with your lenders’ creditor insurance product, realize how expensive this creditor insurance is versus the insurance products that we can provide you with. Understand that all creditor products are underwritten upon the time of death, and that’s scary. The last thing your loved ones or business partners need is to face scrutiny from an insurance company while trying to file a claim.
Purchase fully underwritten insurance products through us, and allow the insurance companies to ask medical questions and complete tests so that there is nothing to question when a claim is made. When you prove your health to an insurance company, they price your insurance accordingly. When you walk out of your banker’s office after answering a few questions, don’t expect that insurance to be cost-effective or comprehensive.
At this age, you should be shifting the business debt risk to the next generation, and you refocus your life insurance needs on estate and tax planning. Instead of paying big premiums to insure debt with term policies, you need to shift those premiums into permanent life insurance that is going to help you solve other issues like capital gains taxes and inheritances for non-business affiliated children.
Losing a business partner is emotional and never easy to deal with. The last thing you need is the burden of having to come up with the cash to purchase the shares or assets from your deceased partner’s spouse or family members. We recommend that you ensure your business partners’ life for the value of their shares and that they insure your life for the same. This ensures that there are adequate funds for you to buy back the shares or assets and retain control of your business.
This strategy is usually implemented with term life insurance policies. However, if it is obvious that you are going to be in business with your existing partners for a long-term period, you may want to consider purchasing permanent life insurance on each other, especially if you or your partner do not have children that are active in the business. At some point in time, whoever has the children who are successors to the business are going to have to come up with a solution to buy the shares or assets from the non-active partners’ estate, and life insurance proceeds can help facilitate this transaction.
Whether you are involved in a family business, private business, or private professional practice, you need to understand the future implications of capital gains taxes, whether it pertains to yours, your parents, or partners’ shares. You, nor they have the luxury of deferring capital gains taxes.
The question then becomes, what are the plans if you or other partners or shareholders do not have enough capital gains exemption to cover capital gains taxes? Does this tax issue get left to the estate, or do we integrate planning beforehand?
No one enjoys tax bills looming over us, so it is human nature for us to want to pay taxes off as quickly as they’re owed, regardless of whether they are immediately owed or payable upon death or disposition. This psychological reaction leads people to make ineffective financial decisions, like drawing excess corporate cash to pay capital gains tax bills.
If you, your parents, or partners are actively paying down the capital gains tax, we recommend reconsidering strategies. If you or they are insurable, then explore the option of paying the capital gains tax bill with life insurance proceeds. No tax tool or mechanism comes even close to being as tax-effective or cost-effective as corporate-owned life insurance.
When non-business affiliated children or family members inherit shares or business assets, it can create unintended issues. The ideal situation is when non-business affiliated siblings or family members get personal assets or cash, but these do not always exist. It is typical for a business or professional corporation to continue reinvesting, deferring, and growing the operation, which results in little to no liquid cash to facilitate inheritances for the non-business affiliated.
Life insurance is such a simple solution to what is usually viewed as a complex and stressful problem. Sit down with your children or family members, agree to an amount required to create the inheritance for the non-business affiliated, purchase the policy, and you’re done. No more worrying about how this is going to be handled in the future.
With the utmost respect, it doesn’t matter how successful you are or how much wealth you have created. If you do not distribute it properly, it can have a devastating effect. Do not be known as the person who did no planning and has family who no longer talk. Take the time, have the discussions, and leave the most meaningful legacy you possibly can.
Let us customize a policy to take care of this problem so that you can focus on more important things, like growing your business.
There is a possibility that you have accumulated trapped wealth within your business or professional corporation, and you need to educate yourself on advanced corporate tax strategies so that you have tools to address these potential tax liabilities.
We see it repeatedly where shareholders let large amounts of cash sit, earn passive income, and pay brutally high passive income tax rates. As this trapped capital grows, it becomes more and more of a tax liability. We want you to know that passive investments do not have to sit in taxable corporate investment vehicles. We also want to remind you that it is not likely that your bank, wealth, or investment advisor is going to advise you to move your passive income out of their management and into the tax-sheltered investment account within a life policy. We’ll let you draw conclusions as to why.
We can structure life insurance policies to completely deplete taxable corporate capital and/or overfund the policy so that the corporations’ passive investments grow within the policy tax-free.
We kindly remind you that corporate cash is taxable on death, as it has capital value, but life insurance does not. This is a perfect strategy to fund inheritances for non-business affiliated children, to pay down capital gains taxes, or to simply enhance the value or their trapped wealth.
If you are insurable, never die with cash stuck in your corporation. Let insurance be the vehicle that extracts it.
As humans, the risks of us breaking down are no different than the tangible assets our business uses to generate income.
It is important to understand that assets vital to the success of your business or practice should be insured. Premises are routinely covered for fire and/or theft; vehicles and equipment used to complete contracts, insured; machinery needed for manufacturing, also insured. Given that these tangible assets are instrumental in the success of the business, it makes good business sense that the business is protected in the event of a loss. But what about key employees? Many business owners overlook the impact on their business should a key employee die unexpectedly.
If your business or practices’ continued success is dependent on key people, it would be prudent to ensure all key personnel whose death or incapacity would negatively affect profitability. Insuring against the death, disability, and critical illness of a key person are all important.
45% of women and 49% of men in Canada will develop cancer in their lifetime. 9 in 10 Canadians have at least one risk factor for heart disease or stroke.
You are at an age in your life where the chances of being blindsided by severe health issues become much greater. Your business, your family, and possible employees depend on you to lead, but how do you lead if an injury or illness renders you temporarily or permanently incapable of doing so? If you became critically ill or injured, does your business have the cash to continue paying your income and to maintain the daily costs of your operation? Would you need a way to cash flow the business bills and operational costs while you recover or seek private treatment or rehabilitation services?
If you are diagnosed with a covered illness or injury, Critical Illness insurance will pay you or the business a tax-free benefit that can be used to maintain your business’s operation.
Shared-ownership critical illness allows you to own a critical illness policy jointly with your business or Professional Corporation. The professional or business corporation pays for, and benefits from a tax-free lump-sum benefit if you are diagnosed with a covered critical illness.
You, the shareholder, pay for the Return of Premium Rider with after-tax income. This means that if you decide to surrender the policy after it has matured, you receive a personal check for the amount paid by the corporation and the amount paid personally.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
This can add up to a substantial amount of money being liberated from the corporation and can be perfect for retirement planning.
1 in 3 Canadians will become disabled and unable to work for more than 90 days before age 65. In the event of a loss of income, half of Canadians would have to borrow money or move within six months.
Think of the blood, sweat, tears, and money that have been invested in your business or professional practice to earn the income that you earn today. Now think about that income disappearing overnight in an unfortunate car accident, or a diagnosis of a degenerative disease. You are entering the years where your health can be taken from you in a split second. Being disabled or unable to work is stressful enough on its own, and it doesn’t need to be amplified by potentially losing decades of income and forcing you to spend emergency or retirement money.
Hedge the risks of losing your income by allowing us to customize a disability plan that is right for you. This guarantees that if you cannot perform the essential duties of your occupation that you will receive a monthly benefit that reflects the income you and your family are accustom to.
If you haven’t seen your advisor in years and would like your policies reviewed, simply let us know. We can proxy review them online, or we can have an advisor come out to review them in person.
We want to remind you that almost every term policy comes with a conversion option, which allows you to with the stroke of a pen and no medical requirements. We encounter many individuals who cancel their term policies without knowing this to later find out that they’re no longer insurable and are now left with no options.
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