At BizON we believe that our members should have acess to a resourceful marketplace in order to maximize their buy/sell experience. We are happy to say that we continuously developing relationships and partnerships with industry leaders in order to provide our members with advice from every angle. This week we feature an article from one of our partners, Cornerstone Insurance, written by Steve Kark.
Top 6 Reasons Why You Need Corporate Owned Life Insurance
We all understand the benefits of life insurance. We purchase it to take care of our loved ones in the unfortuate (but unavoidable) event of our deaths. Life insurance gives us peace of mind, knowing that no matter what happens, our families are protected. Did you know that Life Insurance can be purchased by your company to cover the multitude of costs in the event of your (or a key employee’s) demise?
As a business owner, purchasing Corporate Owned Life Insurance (COLI) is one of the smartest moves you can make for the longevity and financial future of your business.
COLI can provide funds/financial assistance for:
1. Estate debts and taxes on capital gains – funds are provided to cover the costs, as well as provide a sum of money independent of the risks and hazards of private business.
2. Debts of the corporation – funds can be used to pay creditors so that the business can continue on a profitable basis or sold at a maximum price.
3. Fulfilling the terms of a buy/sell agreement.
4. Economic loss of a key employee – losing an employee is very difficult, but losing a leader can be devastating to a business. It takes time and financial investment to hire, promote, and/or train new leaders.
5. Death benefits – the amount paid to the insured’s widow/widower is deductible to the corporation.
6. Your overall bottom line – where the policy has cash values, these appear as an asset on the corporate balance sheet. The cash value can be utilized as additional collateral or emergency funds during an insured lifetime. During their accumulation period, the increases in cash values are tax sheltered.
Want to know more? Cornerstone Insurance Brokers has been working with some of Canada’s leading businesses for more than 30 years. Contact them at 1-888-768-8001, email them at email@example.com, or visit them online www.csib.org
From The Desk of BizON