Life Insurance for Business Owners
Unforeseen accidents and illnesses can significantly impact our finances and overall security. According to the Canadian Institute for Health Information, every minute sees five individuals admitted to hospitals across Canada, with an average hospitalization duration of seven days.
Amid unpredictable challenges, securing tailored disability insurance is crucial. This financial safeguard ensures income needs are met during incapacitation, allowing focus on recovery. Recognizing income as the greatest asset, this insurance preserves financial stability amid a disability’s impact.
Protecting income is vital for resilience and well-being, not just financially but also for stability in the face of life’s unexpected challenges.
A notable feature is the “Return of Premium” rider, which refunds 50% or more of all premiums if certain qualification criteria are met.
Note: Disability insurance policy features, riders, and qualification criteria differ among insurance providers.
Examples of Business Plans
Business Buy-Sell:
- Business Buy-Sell Life Insurance ensures smooth ownership transfer in case of an owner’s death. Each owner holds a policy on the lives of others. If an owner dies, the policy proceeds buy out their share, ensuring a seamless transition of ownership and financial security for the deceased owner’s beneficiaries.
Business Key Person:
- Business Key Person Life Insurance is a policy purchased by a business for a crucial individual. If they die, the policy pays the business, helping with expenses like hiring replacements, meeting creditor obligations, or offsetting revenue losses, ensuring business stability.
Business Loan:
- Business Loan Life Insurance covers outstanding business loans if a key individual responsible for the loan dies. If the insured individual passes away, the policy pays a lump sum to help repay the loan, maintaining financial stability for the business and safeguarding its assets from potential liquidation.
Business Growth Protection Rider
Business Growth Protection Rider:
- Business Growth Protection Rider offers the opportunity to secure additional coverage for the insured without requiring updated medical information. Accessible on predetermined option dates, contingent upon financial underwriting standards.