Group Benefits, Health Spending Account (HSA), Buy Sell Insurance, Key Person Insurance and more.

By offering your employees Group Benefits, Health Spending Account or setting up a Buy Sell Insurance or Key Person Insurance you can protect your employees and your business, maintain productivity, and attract and retain key talent in a tax efficient way.

Group Benefits plan – includes Health and Dental coverage, Life Insurance, Disability Insurance, Critical Illness and more. Plans are fully customized to meet your budget and needs.

Health Spending Account (HSA) – A HSA is an alternative for traditional health insurance. Individuals who have incorporated their business, such as consultants and professionals, often find that an HSA is an affordable and tax efficient way to provide health and dental coverage for themselves, their families and their employees.

The CRA indicates that the corporation needs to employ the services of a third party to manage the plan and process the claims. There is no initial fee to set up the account, an administration fee of 5% to 15% of the claim amount (plus taxes) is charged at time of claim.

The advantages of an HSA are that all the medical expenses listed by the CRA are covered in full, pre-existing conditions are included, dependents can be covered, benefits are not taxable to the employee, and all costs are tax-deductible to the corporation.

Buy Sell Insurance – an insurance policy purchased by the company to fund a Buy-Sell Agreement.

Planning for the loss or disability of business owners with a Buy-Sell Agreement and Buy-Sell Insurance is important for the continuity of the business and for protecting the financial interests of each owner’s family. A Buy-Sell Agreement specifies what will happen to the shares of an owner who passes away or becomes disabled. If a company’s Buy-Sell Agreement requires that the other owners purchase the deceased/disabled owner’s interests, the company can use Life or Disability Insurance, rather than personal funds or business assets, to fund the transaction.

Key Person Insurance – any employee or manager that is vital to the future growth and success of the company is a key person and should be insured.  If the key person dies or becomes disabled, the company could use the insurance benefits to help cover the costs of replacing him.