Life Insurance Strategies & Corporate Financial Security

Our business insurance solutions help companies manage a wide range of risks and exposures encountered in today’s business environment.

For the most part, businesses (particularly incorporated businesses) buy life insurance for the same reasons that individuals buy life insurance:

• To discharge liabilities at death
• To permit survivors to keep operating after a death
• To assist the survivors with reaching long-term goals

In a corporate setting, the life to be insured could either be an owner of the business or a key employee of the business, whose services are vital to the profitability, possibly, even the survival, of the business.

Planning areas that deserve special attention from business owners with respect to the continuing operations of their businesses upon death include:

Business Succession and Continuation Planning
Buy-Sell Agreements
Key Person Insurance
Discharging Debt

Further Corporate Insurance Planning Considerations

Equally important to the corporate financial planning process is the use of disability and critical illness insurance to adequately protect the business owner(s) and key employees.  Disability and critical illness policies should be used with life insurance to adequately fund a buy-sell agreement, protect against the loss of key persons and discharge debt in the event of a debilitating disability and / or critical illness.  The implementation of these plans can be accomplished utilizing tax deductible premium payments.

Some strategies to consider are:

• The implementation of a buy-sell agreement utilizing disability and critical illness policies to fund the buy-sell
• The implementation of a Salary Continuation Plan – a fully tax-deductible disability and critical illness insurance plan for owner’s, executives and key employees
• Overhead Expense Coverage (see below)
• The implementation of a key-person disability and critical illness insurance plan

Office Overhead Expense Insurance Coverage

One of the prime dilemma facing a disabled business owner is how to cover the ordinary expenses of the business during a period of disability, so that the business can continue, and will still be viable when the disabled owner if ready to return to work.

Most closely held businesses resolve this problem by taking out an office overhead expense disability insurance policy on the owner(s) of the business, so that the regular expenses of the business attributable to a disabled owner will be paid for by the insurance benefits during a period of disability.

Ask your FC Financial security specialist about how to properly implement a full-tax deductible disability and critical illness insurance plan.

Group Benefits Plans

A benefit plan is definitely not a "one size fits all" solution. A group benefit plan can take on many different forms depending on the size of the group, the objectives of the plan sponsor and the benefit plan budget.

The characteristics and requirements of each group must be thoroughly analyzed and reviewed so that the benefit plan matches the objectives of the plan sponsor. Our goal is to provide clients with access to a wide range of group benefit programs which are suitable to their specific situation, while helping to manage rising costs.

The information provided is intended to outline some of the main features of each benefit, describe some of the plan design options available and identify to plan sponsors and administrators areas that should be given consideration when designing their benefit plans.

Our services include:

• Needs analysis
• Plan design
• Plan implementation
• Administrative support
• Claims resolution
• Renewal rate analysis
• Cost containment
• Plan marketing