Every company has valuable assets and valuable people who need financial protection suited to their business needs.
We at Drover Financial are Independent Brokers who provide services to large corporations, middle market and small businesses. We are here to help each corporate client achieve their financial goals and objectives.
Business Term offers flexibility term insurance designed to meet the long and short-term needs of businesses and business owners.
Term-to-100 policies are often seen as Permanent Insurance but their main characteristics are similar to other Term Insurance policies. Most Term-to-100 plans don't build cash values or pay dividends. They provide a death benefit to age 100, if the policy is kept in force, and have level premiums, regardless of changes in age or health.
Basic Term Insurance policies are generally for a specified period, such as one, five, 10 or more years, or to a specified age. These contracts tend to have lower premiums while the life insured is young, but when renewed for an additional term period, the premiums can rise significantly. Term policies are ideal to cover large obligations over a short period when funds available for insurance are small. Most term policies can be converted to a permanent policy under certain conditions.
Universal Life is a permanent interest-sensitive policy that is more flexible and is divided into basic insurance and an investment account. You can decide how much goes into each and increase or decrease your premiums and the death benefits within some limitations. Premiums and benefits can be readjusted at specified times, depending on your insurance needs and on what choices you make in the investment side of the policy.
Variable Insurance contracts are another variation of Permanent Life Insurance. Premiums are usually guaranteed in these policies; however, the cash values vary based on the performance of an investment fund or other index. The death benefit consists of one part that is guaranteed and a second part that varies, depending on the fund's performance, subject to a guaranteed minimum.
Whole Life is a common permanent policy that provides a guaranteed death benefit, expressed as the face amount, for premiums that are usually guaranteed to remain level regardless of age or health changes throughout your life. Whole Life policies often pay dividends. These policies accumulate a cash value that may be borrowed against, used to continue coverage if premiums are missed, or withdrawn.
Because of the many options available in life insurance policies, a knowledgeable, trained Life Insurance Advisor from Drover Financial is invaluable in finding the right policy to meet your present and future needs most effectively.
Succession Transfer: In referring to a board or an organization, it is to ensure that people are identified and prepared to replace key players as their terms expire, recognized as good practice in considering the appointment of new members to ensure continuity and appropriate skills are maintained for the entity as its role evolves.
Buy-Sell Agreements: protecting your business is an essential part of preserving your estate. When an active shareholder in a business can no longer participate in the business, it's important that the other shareholders have a plan in place to continue the business. A Buy-Sell agreement ensures that money is available to buy a deceased partner's share of the business, using life insurance as the vehicle to fund this purchase.
Key Person Coverage: Key person life insurance protects a business from the untimely death (or disability) of a key member of the management team. Often in a small business, there are a handful of owner/partners without whom the business would fail. In the case of many home-based businesses, the entire company is one person. Key person life insurance protects the business, and the stakeholders of the business, from the loss of these key players.
Key person life insurance is simply a life insurance policy where the beneficiary of the policy is the business, not the family of the deceased. As such, it is a business expense for the company and fully tax deductible. If the person should pass away, the insurance company would pay the business the face amount of the insurance policy.
Salary Continuation Program: The probability you or your employees will experience a disability may be higher than you think. And, the odds increase the more people you employ. If disability strikes, are you prepared to continue to pay the disabled employee? Could you afford a replacement? A salary continuation program can help answer these questions.
A salary continuation program is a formal program for continuing the wages of a disabled employee. The program may be self-funded or insured. Without a formal program in place at the time of disability, salary paid to a disabled employee is not deductible by the employer. By establishing a formal program, benefits paid to a disabled employee or the payment of insurance premiums qualify as "necessary business expenses" and are tax deductible to your business. To qualify, the program must be adopted prior to the disability.
Disability income insurance is the preferred way to fund the program and avoid potential problems of self-insuring the risk. The costs of insuring the program are relatively small, and the employer avoids unexpected payments at a time when the business may be suffering from the financial strain of having an absent key employee.
Benefits of an Insured Salary Continuation Program:
- Increases employee loyalty.
- Attracts and retains employees.
- Provides payments exactly when needed.
- Saves significant dollars from unnecessary taxation.
- Relieves management of decision to whether or not an employee is disabled
The information contained throughout our website is for Canadian residents only and does not consititute an offer to sell or a solicitation in any foreign jursidiction, or in any Canadian jurisdiction where Drover Financial Representative's are not licensed to sell.
