I had the opportunity to lunch with a member of the Alberta Insurance Council this week. Being in the business of advising buisness owners, Work Matters always puts forward the requriements for Key Person insurance as smart business practice. But as the people we have worked with over the years become more high net worth clients, the needs are evolving. How do we protect the family business, the assets, both personal and business. Upon death, there are taxes to be paid. What has to be sold to cover the expense of dying? Liquidating an asset upon the loss of a family member or business partner can set the business back years when you look at the larger numbers. This is where a great insurance broker comes in. That's right, just like a mortgage broker, you can seek out the advice of a life insurance broker that wholesales in many financial instruments and many insitutions.
Why invest in a permanent life insurance policy? How is it even an investment? Well first of all, I have learned that not only are the premiums you pay a type of savings (investment) that you retain, but the premium also pays for the life insurance aspect that pays your beneficiary at the time of death. That death benefit can be used to pay the tax bill that comes due as a result of capital gains, therefore saving the business or the family from having to liquidate (sell) an asset. Now if you are talking high net worth numbers this becomes essential as the numbers can go into the millions. So whether you have a professional corporation, or a string of deli shops or you are a professional athelete, there is good sense in diversifying your portfolio to include permanent life insurance. Many financial managers wish to keep all the allocated investments 'in house', but I think you need to add another professional to your quiver of arrows, and that is a good life insurance broker. Work Matters can give you peer referrals if you need someone. No cost or referral taken. It's our priviledge to help.