Ensure the Future Growth of Your Business is Protected

For the business owner, it is important not only to insure their business for current needs, but also make sure the future growth of their business is protected. The purchase of life insurance on a business owner is an important part of succession planning. All too often the future growth of the business is difficult to predict and is left to be taken care of in the future as needed. Unfortunately health issues can make it can make it difficult and costly to add more life insurance protection in the future to keep pace with the growth in the value of the business.

A guaranteed insurability rider or a business growth protection rider included in a life insurance policy enables a client to obtain the protection they need today and also keep pace with the future growth of their business. Business owners, shareholders, partners or sole proprietors have the option to purchase additional life insurance without providing further medical evidence of insurability.

Corporate owned life insurance is life insurance owned by a company on a key employee, shareholder or partner. The life insurance is used to fund purchase agreements between shareholders/partners at death, disability and retirement.

The Corporate Insured Retirement Plan is a vehicle to accumulate tax sheltered investment in a life insurance contract to later fund an “after tax income” for the individual business owner, shareholder or partner. When compared to a traditional investment owned by a corporation, the Corporate Insured Retirement Plan far outperforms the traditional investment even if the investment in both cases is a GIC/term deposit.

Businesses must protect their equity and growth by having all agreements legally documented and funded by the corporate insurance plan. It is often said that businesses don’t plan to fail, they fail to plan.