Business Insurance, Estate and Succession Planning

Business Insurance, estate and succession planning advice for business owners.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Team Blogs
    Team Blogs Find your favorite team blogs here.
  • Login
    Login Login form
Recent blog posts

One simple strategy to reduce employee stress

Posted by on in Employee Benefits

One simple strategy to reduce employee stress

 

Many business owners are unaware that one minor change to their employee benefit plan can result in happier, less stressed, more productive and engaged employees.

 

Here's what financial stress sounds like.

 

...
Continue reading
Hits: 319 0 Comments
0

What is a "hybrid" group benefit plan?

Posted by on in Business Insurance

Unbundling group benefits for savings and happier employees


Many organizations are looking at a new group benefit plan design that not only is better at engaging their employees but also saves money, money that can be re-directed into their bottom line. The plan design, called a “hybrid” group benefit plan, is a combination of traditional insured benefits and a healthcare spending account. Employers do not need to switch insurance companies, a hybrid plan is simply a re-design of the one they already have. The savings can be significant and are in the 10-20% range depending on the number of employees and the current plan design.


Most of the cost of a group benefits plan is in the medical, drug and dental side of the plan. However, large portions of these benefits are not being utilized by employees. Simply put, the return on investment (ROI), isn’t there. Dental plans and the coverage for medical practitioners such as chiropractic care, dieticians and podiatrists are underappreciated but paid in full by the company. Unbundling the plan and putting these dollars in an employee’s healthcare spending account allows the employee more flexibility and choice as to where they spend their healthcare spending account dollars.


The savings are found in two ways. First, the administration fee of a healthcare spending account is half the cost of the fee being charged by the insurance company for the traditional plan. Second, is that most employees will not use 100% of their healthcare spending account allocation, in fact many healthcare spending accounts operate at a 75% utilisation rate.


For example, if a company had 25 employees and they gave them each a notional healthcare spending account balance of $1000 the total liability to the business would be $25,000 annually, however history shows us that the actual utilization rate is closer to 75% or $18,750. Unlike an insured plan a healthcare spending account only pays for costs that are actually incurred.


The insurance portion, life, disability and critical illness, called the “pooled” portion of the plan, generally only represents 10-20% of the premium. A hybrid plan leaves the drug plan, major medical and supplies, and the pooled benefits, with the insurance company.

...
Continue reading
Hits: 391 0 Comments
0

Which is better mortgage insurance or life insurance?

Posted by on in Term Life Insurance

Which is better mortgage insurance or life insurance?

 

I feel like Rick Mercer when I hop up on my soap box and tell clients what a lousy product mortgage insurance is, I get quite animated and I wish Rick would do a public service televised rant because this product is really bad.

 

I got myself in a bit of a lather this week talking to new clients about mortgage insurance and the value of independent advice. If your financial advisor is not telling you about all the options available in the market place, even those they can’t sell, then you are not getting independent advice, beware, you are talking to a salesperson who can only offer you their company’s products.

 

...
Continue reading
Hits: 886 0 Comments
0

Estate planning and Segregated Funds

Posted by on in Estate Planning

Planning one’s estate is important because it helps minimize taxation and makes certain that your assets got to you family and friends, or charitable organisation in accordance with you wishes thereby avoiding headaches and problems for those left to settle your estate.

 

There has been much talk in the media regarding probate fees and new rules and liabilities that face an executor in Ontario. For many older Canadians, there is a great interest in estate planning.

 

Probate fees in Ontario are the highest in the country and will cost an estate approximately 1.5% of the estate’s value.

...
Continue reading
Hits: 703 0 Comments
0

Probate fees in Ontario

Posted by on in Estate Planning

Probate Fees in Ontario

 

I get many questions about probate fees at the estate planning seminars that I run at Toronto seniors’ residences. As an insurance broker and estate planning advisor I am quick to point out that I cannot give legal or accounting advice but I am able to educate people about the issues, recognise the red flags and direct people to seek additional advice when needed.

 

Planning one’s estate is important because it helps minimize fees and taxation and makes certain that your assets go to your family, friends or charitable organisation in accordance with your wishes thereby avoiding headaches and problems for those left to settle your estate.

 

...
Continue reading
Hits: 836 0 Comments
0

Life insurance for SCUBA divers

Posted by on in Family Protection

Life insurance for SCUBA divers.

 

Most traditional life insurance companies treat SCUBA diving as a risky sport. Scuba diving is lumped in with other “hazardous sports and hobbies” such as hang gliding, skydiving, motor racing and mountain climbing.

 

If a scuba diver is applying for life insurance with a traditional, fully underwritten, life insurance company they will be asked to complete an additional questionnaire related to their diving activities. The answers to these additional questions may result in limitations to their coverage or an out-right decline of coverage.

 

...
Continue reading
Hits: 803 1 Comment
0
Recent comment in this post - Show all comments
  • eric van haaften
    eric van haaften says #
    The rates scuba divers pay for life insurance in Canada may be different then in the United States. There are four different consi

Reverse Mortgage - a cash-flow solution

Posted by on in Estate Planning

Reverse Mortgage - a cash-flow solution

 

Many older Canadians have much of their wealth tied up in their homes, and some have poor cash-flow.

 

I recently met a woman at one my estate planning seminars in Toronto who told me that she was seriously looking at borrowing money to improve her cash-flow by using a CHIP reverse mortgage.

 

...
Continue reading
Hits: 821 0 Comments
0

Term Life Insurance - the second important feature most people forget - Convertibility

Posted by on in Business Insurance

The second important feature of most term life insurance policies is that it is convertible to a permanent, level premium policy without providing any medical evidence of insurability.

 

This is a great feature because as we age our health changes. The big three health issues are cancer, stroke and heart attack but there are lots of other health issues that develop as we age.

 

Once you own a term life insurance policy you have locked in your protection and your insurability. If you develop a health problem and are facing a big increase in your term life insurance you can convert some, or all of the protection to a level premium permanent policy.

...
Continue reading
Hits: 865 0 Comments
0

Term Life Insurance - Two important features most people forget

Posted by on in Family Protection

I wanted to remind you of two important features of term life insurance.

 

Term life insurance policies are typically both renewable and convertible and these nifty features are built in to most term life insurance contracts.

 

Let’s first talk about what makes the insurance protection renewable.  Term life insurance increases in cost at the end of each term. The terms are typically 10 and 20 years terms. The premium changes are written in the policy and are guaranteed. This means that with a ten year term policy that the premium will increase in the 11th year and on the 21st year if you have a twenty year term. Each time the premium increases we call it a “renewal”.  

...
Continue reading
Hits: 775 0 Comments
0

It takes a team to help a business owner.

Posted by on in Business Exit and Transition

ProInsure has developed a multi-disciplinary, client centric approach to helping business owners build value and develop business efficiencies as they plan for the day they will change ownership of their business.

 

Most advisors do not understand all the needs of the business owner and if they do, they cannot possibly have all the skills needed to solve the problems. Furthermore, most advisors attempt to build a wall of control around the client. This wall keeps other disciplines and important information and real value away from the owner and only serves the needs of the advisor. An advisor that works as a member of an inter-disciplinary team is of far greater value to the owner.

 

There are four main areas in where advisors help business owners.

...
Continue reading
Hits: 767 0 Comments
0

Every Successful Business Needs "Plan B"

Posted by on in Business Exit and Transition

Are you ready to sell your business and is your business ready to be sold?

I am going to stick my neck out here and say no – to both questions. You are not ready to sell your business and as a result, it is not ready for sale.


You are not ready to sell your business because you aren’t ready to retire, you don’t want to retire, you don’t know what to do if you were to retire and let’s face it, you like what you do.


Building your business gives your life purpose and (for the most part) it is fun to build. Because you are not finished building it, plus the fact you aren’t sure what you would do if you did sell it means that it is not ready to be sold.


Daniel H. Pink says in his book Drive: The Surprising Truth About What Motivates Us, that the secret to high performance and satisfaction—at work, at school, and at home—is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world.


As a self-employed entrepreneur I love directing my own life, learning new things and having purpose to my life. I am not ready to sell my business either but, just like most business owners I recognise the need to have a backup plan - “Plan B” – in writing.

...
Continue reading
Hits: 1086 0 Comments
0

Don’t Wait Too Long to Convert Your Term Insurance

Posted by on in Term Life Insurance

Don’t Wait Too Long to Convert Your Term Insurance

Don'twait

 

Many of us purchase large amounts of low cost term insurance to cover our needs while we are raising our families or growing our businesses.  However, as the saying goes, “there is no free lunch”.  Eventually this low cost term insurance starts to become expensive and other options should be considered.  If you are unable to qualify for a new permanent insurance policy don’t worry, your safety net is the conversion option in your existing policy.


Most term life insurance contracts include two important features. The first is that the coverage is contractually renewable and the second is that it is convertible.
Renewable means that the coverage will continue, at rates that are guaranteed in the contract in accordance with the term. If you own 10 year term coverage the premium will increase every ten years.

 

The other feature is convertibility. This means that you can change your increasing term contract to a level premium permanent contract any time without having go through a medical.

...
Continue reading
Hits: 857 0 Comments
0

What is your succession plan?

Posted by on in Business Exit and Transition

Do you have a succession plan for your business?

If you are like over 87% of most business owners are too busy running your business to find the time to write a succession plan.

Having a plan in place, even if you have no immediate interest in selling or retiring, is good business.

How long would the business last without you?

An unexpected accident or illness will have your people wondering what to do next. A plan, in writing, keeps employees from panicking and the business keeps running as usual.

We help business owners put on paper the plans that are in their heads and prepare the business for the day it will transition to new owners, internal management or family members.

Our plans:

  • minimize taxes
  • maximize and protect shareholder values
  • clear up or head-off shareholder issues
  • create contingencies plans
  • prepare a smooth transition to new ownership
  • fund a full and meaningful retirement


It takes two to five years to implement this type of plan, so the need to start planning may come sooner than you think!

Please watch The Role of Business Advisors by Dr. Tom Deans



Call or email us to learn more about how we can help you pay less tax and fund a full and meaningful retirement.

Nick Godfrey | 905-815-7186 | Nick@ProInsure.ca

Hits: 989 0 Comments
0

Selling a Business? Make it more attractive to buyers with key man insurance.

Posted by on in Business Insurance

Buyers are more comfortable when the sellers have insured themselves properly. It shows the buyer that they are serious about selling the business.

 

There are many unforeseen events that can put a business sale at risk. Some are easier to manage than others. Key man insurance is a relatively easy and inexpensive way to take risk off the table.

 

Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business; the ones whose absence would sink the company. These are the people the buyer wants to see insured.

...
Continue reading
Hits: 1334 0 Comments
0

Shareholder agreements and Buy-Sell Funding

Posted by on in Partnership problems

Buy/sell agreements provide for the transfer of the ownership of the business in different circumstances ­ death, disability, retirement or disagreement. At death or disability, for example, the remaining owners may not want to be in business with the deceased owner's heirs or the non-active disabled owner. As well, the heirs or disabled owner may prefer to receive the value of the deceased owner's share of the business in cash. If an owner retires, an agreement paves the way for business as usual. If owners have a falling out, a buy/sell agreement will enable the business to continue or be "wound up" in an orderly fashion. 

 

A buy/sell agreement should deal with:

  • Who will buy the shares;
  • What the terms of the sale will be;
  • When the sale will take place;
  • Where the money to buy the shares will come from; and,
  • How much the purchase price of the shares will be.

 

 

...
Continue reading
Hits: 1262 1 Comment
0
Recent comment in this post - Show all comments
  • Smithd67
    Smithd67 says #
    Only wanna tell that this is very useful , Thanks for taking your time to write this. fdedabefdefkdgba

Preparing your business for sale

Posted by on in Business Exit and Transition

Do you need a business speaker for your next event?

 

We have developed an entertaining and informative presentation entitled, “Preparing your business for sale.”

 

We deliver a presentation that is of interest to all stages of business from small start-ups to large mature businesses.  Business people, self-employed persons, business owners and others who may be thinking of starting their own business will all have something to take away from this presentation. (It is not a sales pitch for products or services.)

...
Continue reading
Hits: 1333 0 Comments
0

Parents of children with disabilities should look at a Henson Trust

Posted by on in Estate Planning

Parents want to protect their children. For the parents of children with a disabilities, this is especially important, as their child may not have the financial means or the capacity for financial independence. When estate planning, one option these parents have is to set up a Henson Trust.

 

The Henson Trust was first created in Guelph, Ontario, in 1989, when the Henson family wanted to set up a trust for their disabled daughter. A Henson Trust protects a disabled child’s disability benefits.

 

The following is information about the Trust, as published by Tax, Retirement & Estate Planning Services at Manulife Financial. (Note: the Henson Trust may not be available in Alberta and Saskatchewan, and is at the discretion of the Social Ministry in Quebec).

...
Continue reading
Hits: 2520 0 Comments
0

Congenital heart disease no longer a barrier to life insurance

Posted by on in Non-medical life insurance

Life insurance and Congenital Heart Disease

 

Since I co-founded the Canadian Congenital Heart Alliance 10 years ago, one of the complaints I hear regularly from congenital heart patients is that they can’t get life insurance. Despite being in my 50s, stable, healthy and fit, the heart defect I’ve had since birth has blocked me from accessing life insurance through my work too. This is because all of us have a pre-existing condition – one that we were born with – that puts us at risk of medical problems and premature death. Insurance companies see us as a poor risk –and who can blame them? They are basing their calculations on historical statistics, when most of us didn’t reach our 20s! When I was born in 1962, the survival rate for someone with my heart defect (tetralogy of Fallot) was around 20%.

 

But this is 2014, and thanks to outstanding advancements in medical care, research, and interventions, now about 95% of congenital heart patients are surviving into adulthood, and many have a life expectancy on par with their healthy peers. There are people I know with my defect that are in their 70s (and likely some I don’t know in their 80s). In Canada, there are now more than 100,000 adults with congenital heart defects (and around 80,000 kids). And that number will increase as more and more kids survive into adulthood. Many of us will live normal lives with children of our own, and we require the occasional follow-up surgeries to repair leaky valves and patches. Some of us will require devices, like pacemakers and defibrillators, to control abnormal heart rhythms. And as in the general population, some of us won’t fare as well. But all in all we won’t be too unlike “healthy” Canadians.

 

...
Continue reading
Hits: 2571 3 Comments
0
Recent Comments - Show all comments
  • Anna
    Anna says #
    Nice post..
  • Nick Godfrey
    Nick Godfrey says #
    Hi Nick Godfrey here. The bank can only suggest that your husband life insurance the mortgage. They can't make him insure or make
  • Paola
    Paola says #
    Hello, My husband has a congenital heart disease (Noncompaction cardiomyopathy) and he has been refused life insurance in 2010. No

Health Spending Accounts

Posted by on in Health Spending Accounts

If you are a business owner you should think about opening a health spending account.

 

If your business is incorporated and you pay yourself a T4 income you can deduct dental, medical and prescription drug expenses as a business expense by setting up a Health Spending Account. Not only are the expenses a deductible business expense but the benefit is tax-free.

 

You, your dependents or other employees do not pay any tax on the benefits paid by the company – it’s a win-win!

...
Continue reading
Hits: 1440 0 Comments
0

Super Visa - visitors to Canada insurance

Posted by on in Visitors to Canada

The Super Visa is a 10 year visa which allows parents and grandparents stay for up to two years at a time.

 

 

“The launch of Canada Super Visa is aimed to bring considerable reductions in the long backlogs for parents and grandparents wanting to join their families in Canada. The federal government hopes it will bring down the current backlog of 165,000 down.”

 

The Super Visa application must include a copy of the receipt showing proof that the applicant has purchased one year coverage of visitors to Canada medical insurance with a protection amount of $100,000 minimum.

...
Continue reading
Hits: 1359 2 Comments
0
Recent Comments - Show all comments
  • Super Visa Insurance
    Super Visa Insurance says #
    Thank you for sharing this Info...
  • Super Visa Insurance
    Super Visa Insurance says #
    Thank you for sharing this Info...

Blog Archive

January
February
March
April
May
June
July
August
September
November
January
February
March
April
September
October
December

Blog List

Free Quotes - No obligation

Your Name
Please let us know your name.

Your Email
Please let us know your email address.

Message
Please let us know your message.

Spam control(*)
Spam control
Invalid Input

Copyright © 2017. ProInsure - Business Insurance, Employee Benefits and Succession Advisors. Designed by Shape5.com Joomla Templates