Life Insurance

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Life Insurance

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The partners in a business buy life insurance that is to help the company buy back the shares of a partner at his/her death. By doing so partners avoid having their heirs as new partners in the company. The insurance also serves as a protection of the family estate of the shareholders. – PowerPoint PPT presentation

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Title: Life Insurance


1
Life Insurance
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Buy-out agreement between partners
  • The partners in a business buy life insurance
    that is to help the company buy back the shares
    of a partner at his/her death. By doing so
    partners avoid having their heirs as new partners
    in the company. The insurance also serves as a
    protection of the family estate of the
    shareholders.

3
Corporate insurance retirement program
  • Undistributed profits of the company are invested
    in a corporate held life insurance contract where
    they grow tax free. At retirement the insured
    shareholder receives as pension supplement
    regular annual loans that are secured with the
    policy cash values.

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Overhead Expenses
  • The owner of the company insures all fixed
    expenses in the business with a disability
    coverage, so the business can survive periods of
    shareholders inability to work.

6
Key Employee Protection
  • The business insures key employee or a
    shareholder with life, disability and critical
    illness insurance to offset the financial impact
    of loosing the employee/shareholder.

7
Critical Illness Split Dollar
  • A tax strategy in which the the shareholder/key
    employee can personally receive reimbursement of
    insurance premiums paid by savings of the
    corporation.

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Corporate Estate Bond
  • The shareholders estate can receive the savings
    of the corporation as a tax-free dividend paid
    from the Capital Dividend Account, if the savings
    have been invested in a corporately held life
    insurance.

10
  • To Know More Information, Visit Us

http//iassure.ca/en/life-insurance-home/
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