Business Owner Insurance

Owning and operating your own business can be rewarding. But ensuring its long-term success and protecting it from financial risks can be challenging.

Business life insurance can provide:
  • insurance for key persons, business owners and partners
  • Debt and collateral coverage
  • Buy/sell agreement funding
  • Business estate planning
  • Business succession planning
What's the best insurance for business owners?

It depends on where you see yourself in the future and at which stage of growth your business is in today. It also depends on your immediate priorities, as well as your long-term goals for yourself, your family and your business.

How will your business continue if you, a partner or other key employees cannot work due to a serious illness, disability or death? What strategies will you use to help build equity and manage business taxes? How will you provide the benefits that help attract and retain the best people for the job?

Whether your business is small, or large and complex, A.T Financial can help address your unique business planning needs and offset some of the risks you face.

Once your business is well established, a key priority for you is to develop a successful business succession plan or business continuation strategy. From a personal perspective, you want to ensure the future financial comfort for your family. Or perhaps you would like to give back to your community by supporting a charitable organization.

When dealing with your professional advisors, you place a high value on knowledge and expertise and expect value-added advice and support. As a business owner, you believe in long-term business relationships and expect a professional, planning-based approach focused on you and your business. You recognize the need for a team of expert advisors to work with you to help you assess your financial needs and ensure your plan will be tax effective, meeting your individual risk tolerance.

Our financial advisors and our Tax and Estate Planning consultants can help to create a solution that's right for you - they're a team known throughout the industry as the experts in individual and business insurance solutions.

As a business owner, what are your needs?
Your Need Solutions
Financial need
You’re looking to cover a temporary financial need, such as a mortgage or business loan.
  • You can plan to meet more of your personal and business needs in the event of death with personal life insurance.
  • With a personally owned life insurance policy, not a lender’s mortgage insurance, you have the option to switch your business loan or mortgage to another lending institution without jeopardizing your life insurance coverage. Also, your coverage isn’t reduced by a decline in your loan or mortgage balance.
Key employees
You want to protect your business in the event of the death of a key employee. You want to retain your key employees and ensure you continue to attract desirable employees.
  • The unexpected loss of a key person, may create numerous problems that threaten the viability of your business. Creditors may restrict or withdraw credit, suppliers might tighten payment terms and customers might re-think their purchase and employees may question the future of the company.
  • Key-person insurance can reduce the financial impact by ensuring there is an injection of liquid capital to allow family or management staff time to find a suitable replacement or recover the cost to the business of the lost person.
Business partner buy out
You would like to ensure you have the funds to buy a business partner’s interest at their death or retirement.
  • Life insurance coverage is a great way to fund future succession plans or to fund business continuation plans.
  • Life insurance can also be used in conjunction with an estate freeze to fund future capital gains taxes, or redemption of the shares, as well as provide a means for estate equalization.
Retirement income
You’d like a tax-effective way of supplementing retirement income for you and your spouse.
  • Life insurance coverage can be used as a strategy for tax-advantaged cash value accumulation (within legislated limits) to complement your current retirement income program and increase your estate values.
Family protection
You’d like to ensure your spouse’s lifestyle is protected.
  • Life insurance can protect your spouse’s lifestyle by replacing your future income in the event of your unexpected death.
Reduce taxes
You’d like to ensure taxes owing on your estate are paid, leaving your assets intact for your heirs.
  • Life insurance coverage is a great way to ensure your estate has the liquidity needed to pay final taxes.
Leave a legacy
You would like to leave a legacy for your heirs or a favourite charity.
  • A carefully arranged planned gift can be tax effective, and at the same time balance your final needs and the needs of your family. You can provide your favourite charity with stable funding over the long term, without reducing the estate available to your heirs or jeopardizing your future financial independence.
Providing for your children
You’d like to provide your child(ren) with financial resources for the future – whether or not they’re actively involved in your business.
  • Life insurance coverage creates a financial foundation for your family’s future. It can provide a flexible asset that grows along with your child.
Long-term care
You’d like to provide an income for long-term care or home care for you or a family member.
  • Life insurance coverage can be used as a strategy for tax-advantaged cash value accumulation (within legislated limits) to complement your current savings program and increase your estate values.
  • There are several ways to gain access to policy cash values to meet your need for additional income.

Type of life insurance – suitable to your needs
Term life insurance Permanent life insurance
  • Can cover most debt in a cost-effective way and is an inexpensive way to create a financial foundation of life insurance.
  • Can work very well when you expect to have an ongoing need for life insurance after the debt is paid off.
  • Can cover business loans in a cost-effective way or provide much needed income replacement..
  • Can be used to structure key employee incentive programs to purchase the business.
  • May be used to structure supplementary retirement programs for key employees or to provide funding to attract replacement/new key employees, or to fund the purchase of a business by a key employee in the event the current owner retires or dies.
  • Benefit plans can also be customized for senior executives or key employees using permanent life insurance.
  • Can provide short-term insurance protection for business succession plans. Provides flexibility to convert to a permanent policy.
  • an provide funding to finance a business opportunity or to buy out a partner’s interest upon retirement.
  • Possible to fund permanent policies to ensure a growing death benefit, which can address the growing share value of a business.
  • The death benefit could be used to buy out your partner’s interest or to fund a business continuation plan.
 
  • May be used in two ways to supplement your retirement income: cash value can be accessed to provide a retirement income through a policy loan or partial surrender, or you may be able to use the policy as collateral for a consumer loan at a third-party lending institution.
  • The combination of a single-life annuity pension and a permanent life insurance policy can maximize your pension income while living and provide funds for a surviving spouse after your death.
  • Refer to the Accessing the cash values in your life insurance policy brochure from Canada Life for more information
  • Well suited to meeting high, short-term protection needs for the lowest initial cost. Provides flexibility to convert to a permanent policy.
  • Offers considerable flexibility and options during your life.
  • Great way to lock in insurability and rates while you are healthy, as well as accumulate tax-advantaged savings for the future.
  • Cash value may be used to help finance a business opportunity or retirement.
 
  • Proceeds from a permanent life insurance policy can provide your heirs or estate with the liquidity needed to pay final taxes, capital gains and settlement costs, preserving your estate for your heirs.
  • Refer to the Preserve your wealth brochure from Canada Life for more information.
 
  • An ideal way to create a tax-advantaged asset while you are alive and leave a meaningful gift, outside of your estate, to your heirs or a favourite charity.
  • Many different methods of structuring a planned gift using life insurance.
  • Life insurance products are key to helping donors and charities achieve their goals.
  • Consult your advisor to learn more about Canada Life’s Planned giving using life insurance strategy.
  • An inexpensive way to put a foundation of life insurance in place for your child.
  • You can choose an option that guarantees your child the right to buy additional life insurance in the future, regardless of the state of their health.
  • Provides a flexible asset that grows along with your child.
  • The relatively low, level premium that starts your child’s life insurance program can be maintained throughout adulthood.
  • Can help protect your child’s ability to enhance his or her life insurance program by including an option in the policy that guarantees them the right to buy additional life insurance in the future, regardless of their state of health.
  • When your child takes control of his or her own financial security planning, ownership of the policy can be transferred to them on a tax-deferred basis, creating potential tax advantages as well.
 
  • Policy may be used in two ways to supplement your retirement income.
  • Cash value can be accessed to provide additional income through a policy loan or partial surrender, or you may be able to use the policy as collateral for a consumer loan at a third-party lending institution.
  • Refer to the Accessing the cash values in your life insurance policy brochure from Canada Life for more information.
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