Your overall business plan is designed to ensure that:
- Tax savings opportunities are realized
- You, your family and your business are protected
- You have an estate plan in place
Business Continuation Planning
Business continuation planning is the process of identifying issues that may put the business at risk such as death or disability of a key employee and adopting risk management strategies or transfer these risks.
The loss of key human capital represents potential threats to the business such as loss in productivity, restriction or withdrawal of credit, call of business loans, increased cost of debt service, etc.
In such cases, businesses choose to transfer the risk through the purchase of life disability and CI insurance, the proceeds of which ensure immediate injection of liquid capital in the business.
The same issues apply when a business has multiple owners. The death of a co-owner could have serious impact on the business. It requires advanced planning including a shareholder's agreement funded with life insurance.