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Helping Companies Navigate ChangeWescan Insurance Brokers offers sustainable Employee
Benefits strategies to help businesses innovate, reduce
costs by 20%-30% & manage their Employee Benefits in
a hands-off manner. -
Thought LeadershipWescan Insurance offers real world Employee Benefit concepts,
ideas and cutting edge technology from our partner carriers. -
Customized Plan designWescan Insurance helps businesses customize plan design
depending on the unique Employer & Employee needs. We
have the ability to consult with multiple carriers and come
with the best possible solution for our clients More about our
Group Insurance Benefits Plans Calgary AB
Corporate Life Insurance
Corporate owned life insurance on the life of an owner-manager can be an effective planning tool for Canadian- Controlled Private Corporations. The receipt of life insurance proceeds by a corporation can be used to: fund the buy out of a deceased shareholder’s interest; fund the tax liability owed by a deceased shareholder’s estate; or, offset the economic loss as a result of the death of a key employee. In addition, corporate owned life insurance may assist in securing bank financing.
There are many benefits associated with corporate ownership of life insurance. These benefits include the death benefit being received tax-free by the corporation, as well as the death benefit being credited to the capital dividend account, and using tax-deferred funds in the holding company to fund premiums.
Using Corporate Funds to Fund Life Insurance Premiums
One of the key advantages to having a life insurance policy owned by one’s holding or operating company is that these entities are taxed at a lower rate than individuals.
If the corporate earnings are paid out to the shareholder by way of a dividend, the shareholder will pay tax on those dividends. If the company retains its earnings, it then may invest these tax-deferred funds prior to paying them out as a dividend to the shareholder. If the company uses the tax-deferred funds to pay the premiums for life insurance on the shareholder, then the funds will accumulate exempt from tax in the policy. When the shareholder dies, the company receives a tax-free death benefit, and all or a large percentage of those proceeds are credited to its capital dividend account. The amount credited to the CDA can then be paid tax-free to the beneficiaries of the shareholder, thereby eliminating a tax liability that would have otherwise arisen if he/she had withdrawn the funds from the holding company by way of a taxable dividend.
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Employee Benefits Calgary
Wescan Insurance Brokers is an independent brokerage based in Calgary, Alberta. We specialize in Employee Benefits for small/ medium businesses & Group Benefits in Calgary AB. The challenge today for the Employer or, the Plan Sponsor in the small/medium business segment of the market is the escalating cost and reducing benefits for their Employees.
Wescan Insurance Brokers has the knowledge and experience in implementing various strategies, which can be applied to your current plan , so that we make it more cost-effective and sustainable.
Why do you need Employee Benefits?
Although expensive, there are many intrinsic benefits to providing your employees with a comprehensive benefit plan. For most, it is the ability to find and keep highly qualified staff that is the key driver. With the sector being highly competitive and the number of new employees entering the workforce dwindling, employers are challenged to become even more creative and responsive in the design, timing and generosity of their benefit plans. The more progressive the organization, the more flexible the structure is in response to today’s challenges: i.e. like having four different generations of employees working side by side. Employers who continue to provide the more traditional and limited program, may find it more difficult to find and keep different types of employees.
The insurance broker in Calgary Here are just a few of the advantages of offering benefits to your employees:
For Employers:
- By providing increased access and flexibility in employee benefits, employers can not only recruit but retain qualified employees
- Providing benefits to employees is seen as managing high-risk coverage at low costs and easing the company’s financial burden
- Employee benefits have been proven to improve productivity because employees are more effective when they are assured of security for themselves and their families
- Premiums are tax deductible as corporation expense, which means savings for the organization
For Employees:
- Employees can experience a peace of mind which leads to increased productivity and satisfaction by being assured that they are their families are protected in any mishap
- Employees with personal life and disability insurance can enjoy additional protection including income replacement in the event of serious illness or disability
- Employees can feel a sense of pride in their employer if they are satisfied with the coverage they receive
As an Employer / Plan sponsor, if your Employees can feel a sense of pride and satisfaction with their Benefits package that is a major accomplishment of providing Employee Benefits. We offer strategies and processes to achieve the end goal of making your Employees, feel that sense of pride and satisfaction working for you.
Contact Us
Looking for the best group benefits plans and customized coverage for your small business? Contact Wescan Insurance Brokers for a free consultation and let our team help you find the best coverage at the most competitive rates.
📞 Call us today at 403-903-2898 | 587-430-0516
📧 Email us at info@wescaninsurance.ca