Shared Ownership Critical Illness Insurance With A Side Of Tax Exemption
Group Benefits Specialist in Chatham-Kent
Ken Bechard’s approach is all about building trust and getting all of the facts and details together to provide custom-tailored insurance solutions that fit the needs of his clients. With over 20 years’ experience in productivity, Ken Bechard commits to delivering excellent customer service and guaranteeing satisfaction throughout my interactions with the client.
Critical Illness Insurance allows a business to protect itself against financial hardship should a key employee be diagnosed with and survive a covered critical illness.
Combined with a Shared Ownership Strategy this CI policy also provides the employee/owner with an opportunity to realize the tax benefits of cashing in the critical illness insurance policy “tax exempt” if it is not used.
Here is how it works:
- The company pays the Critical Illness Insurance premium which protects the company with a predetermined amount of cash to recover from the absence of a “key employee” due to illness
- The individual employee/owner pays for a Return of Premium on Cancellation Rider on this policy that returns all the premiums direct to the employee/owner tax free if the CI policy is not used after a prescribed period of time.
Yes, that is correct, both the premiums payed out by the company and the rider premiums combined, are now considered by the CRA as a tax-exempt insurance payout.
Yes, that is correct, you have just moved retained earnings from your company to your personal account tax free.
I know I have done a good job explaining this when the next thing my client says is
“How much can I get?”
Call me for the details and I’ll run some numbers for you.
Our Services:
-
Shared Ownership Critical Illness Insurance
