Protecting your family and your business

If you are a business owner, your focus is likely on the long-term viability of your business. Decisions you make today may impact your business tomorrow and thereafter. Think back to the last time you made a major purchase for your business. Before making that decision, you probably examined all your options and evaluated the costs and benefits of making the purchase.

When it comes to personal and business financial planning, the same forethought is warranted. Have you ever evaluated the costs to the business if you were no longer involved in it? A long term disability, diagnosis of an illness or death could have a devastating effect on your business, not to mention your family.

Putting your family first

If you have a spouse or children who depend on your income, you must consider what would happen if you were no longer able to run your business. Insurance provides a safety net that can help ensure your loved ones will retain a comfortable standard of living in the event of your death or disability or diagnosis of a critical illness.

Protecting against the loss of a key person

To maintain its success, your business relies on the leadership, experience or skills of one or more individuals. That person could be you, your business partners or a few key employees whose absence from your company could lead to its demise. Key person insurance can provide important financial assistance to your business after the loss of a crucial individual.

Funding for a buy-sell agreement

If you have business partners, you may have a buy-sell agreement in place. This document outlines what should be done in the event of the death, disability or retirement of one of the shareholders. If this agreement requires the partners to acquire the shares of a departed associate, how will they afford it? Insurance can provide a timely funding solution for buy-sell agreements.

Creating a succession plan

Your hard work and determination – coupled with your family’s support – has helped you build your business into the success it is today. If you want your family business to remain a family business after you’re gone, you need to address the impact of corporate and estate taxes on the value of your estate. Insurance can provide solutions to keep your success in the family.

Minimize tax

When setting up an insurance strategy, it pays to consider whether the policy should be personally or corporately owned. If your business qualifies, you may have the opportunity to pass the proceeds of a corporately-owned policy through the Capital dividend Account (CDA) on a tax-free basis.

The Butler / Laing Group has the knowledge, resources and team of experts to assess your insurance needs, and create a forward-looking strategy to protect your wealth today and tomorrow, giving you and your family greater peace of mind.  Contact us at (604) 535-4749, or use our contact page.