CORPORATE PLANNING


Having a game plan for your financial future is as important as the blue print in building your dream home. Our goal at Insure Wealth is to help plan your insurance and investment needs to best fit you, your family, or your business

Your Business. Your Plan. Your Options.

A carefully planned corporate insurance strategy can have a great impact on your company. Our team has solutions to not only protect your business and loved ones, but to also lighten your tax load.

PROTECT EMPLOYEES AND GROW PROFITS WITH INSURE WEALTH

Using Insurance for Wealth Protection & Growth:

You have built a successful business, but can you access your corporate capital without a large tax bill?
Would your family be able to properly sell or liquidate your shares and business?
Are your shares protected if something happens to your business partner?
Corporate Insurance plans can be set up to accumulate wealth for retirement, or used to draw money from your corporation tax efficiently. The insurance policy holds additional tax-deferred investments inside the plan.

Benefits of our review:

  • protect your business from financial hardship in the event of death of a key shareholder
  • enjoy the benefit of additional tax-deferred investments for the key shareholders to accumulate wealth for retirement
  • the ability to remove money from your company tax-efficiently

First, we need to determine your need for life insurance and the amount of coverage you require. We will then conclude your insurability through the underwriting process. Once a face amount and a funding level are determined, the owner of the policy pays the premiums. Surplus money is invested into the investment options of your choice. The investment options range from index funds, managed funds, to guaranteed investments. The excess cash grows with interest, tax-deferred.
Additional features of the insurance policy are premium holidays, partial withdrawals, quick payment options (10, 15, or 20 years), and guaranteed cash values.

IFA:

For business owners who are well-established (have a steady-cash flow exceeding lifestyle requirements) and have large assets, such as a mortgage-free residence.

An Immediate Finance Arrangement allows you to deposit extra funds into a life insurance policy. The extra funds are held within an investment and grow inside the policy tax-deferred. The policy is then assigned to a bank as collateral for a line of credit, along with other personal collateral, which can be used to invest in a business, property, or to produce income for the owner.

Each year, you pay the interest expense on the line of credit and claim both the interest expense and the collateral insurance deduction as a tax deduction from your declared income. Although you must pay the interest expense each year, the tax savings that result from the deduction help to offset the cost. At death, the insurance proceeds repay the outstanding line of credit balance. Any excess amount is paid to the beneficiary you had named.

Shared Ownership:

For business owners and key executives looking for more flexibility in accessing the extra funds in their corporation

The Shared Ownership strategy allows you to jointly own your life insurance policy with your company. The insured person owns the cash value and the company owns the death benefit. By depositing extra corporate funds into the policy, you can access the cash through a collateral loan for personal use and pay less tax.

Why Shared Ownership?

  • you are a business owner and would like to make good use of your Corporate Life Insurance Plan and maximize your retirement income tax efficiently
  • traditional investments such as RRSP’s may not work for you
  • you want to leave money in your corporation
  • you want to offer an executive plan for your Key Person

Health Trust:

A flexible Health and Dental Plan that makes expenses 100% tax deductible. A Health Trust helps business owners reduce taxes and makes health, dental, and wellness affordable for their employees. There are no monthly premiums.

Succession Planning

Succession planning for your business is important. As a business owner, you have a number of people that rely on your company (family, partners, customers, employees) and who are invested in your business. Proper succession planning is crucial to alleviate the loss of an owner and to mitigate the financial impact. Corporate Insurance Strategies help protect the continuity of your business against the loss of an owner or key person. Furthermore, the strategy helps to preserve the personal wealth and business assets you have worked so hard to build.

Buy-Sell Life Insurance

Protect your business and your family against the loss of a key shareholder. Planning for the loss of a business owner or partner is crucial to ensure that the continuity of your business is protected, as well as the financial security of your family and the families of each partner. By implementing a buy-sell agreement, you can specify what will happen if a partner were to die. Life insurance can be used to buy-out and provide the families of each partner a secure source of funds for the value of their interest. There are many other ways to structure a buy-sell and the insurance funding should be tailored to the objectives of the business owners.

Key Person Life Insurance

Protect the continuity of your business against the loss of a key person. Does your business include someone whose contribution is vital to your business? If yes, then life insurance is a crucial component of your business continuity and succession plan, especially if you are a small business owner. If an insured key person were to die, their life insurance provides a tax-free cash payment that your business can use as working capital to manage issues related to the person’s death such as recruiting, hiring or training another employee; paying off debt; reassuring customers, employees, or investors that the business will continue operating; the list goes on.

Your Financial Future's In Good Hands

Our goal at Insure Wealth is to help your insurance and investment needs to best fit you, your family, or your business.