Business owners: What happens if your plans get interrupted?

If you’re a business owner, you know it takes plenty of time, work and effort, and you do whatever you can to be successful now, and in the future. For example, you want to protect your business today while making sure you plan for retirement and the legacy you’ll leave behind.Protect your Business with Insurance

But what happens if your plans get interrupted? What would happen if you:

  • Were seriously injured?
  • Battled an illness and wanted to spend more time with your family?
  • Died suddenly and the business had to go to someone else?

Of course these aren’t things we really want to think about, but part of running a successful business means dealing with tough issues – and preparing for the unexpected.

You’ve worked hard to grow your business and make it a success, that’s why protecting it is important.

Protect your business today

While your business may be running smoothly now, you need to be prepared in case the unexpected happens. There are a number of options you can consider as part of your financial security plan; insurance is one of them. The right insurance coverage can help you:

  • Protect your business, if you, or a key employee is suddenly unable to work
  • Pay off business loans
  • Provide you or your business partner with the funds to buy the other person’s share of the business
  • Cover expenses for you or your family

Ensure you have a smooth exit strategy

At some point, you may want to retire and pass on your business. That’s why it’s important to have a plan in place to ensure a smooth transition. Have you thought about your options?

Leave a legacy for those you care about

It’s important to think about what will happen to your wealth for your family in the future:

  • Do you have a plan in place to help take care of loved ones?
  • Are you growing your wealth in a tax-efficient way?
  • What about your estate? Will it be easy to split fairly between family members?

Insurance is one way to help maximize what you leave behind.

Plan to see the whole picture

You’ve worked hard to grow your business and make it a success, that’s why protecting it is important.

I can show you options that may work best for you, and how insurance and other options can help fund, or plan, for unexpected events.

Protect Your Business from the Loss of a Key Person

Like many smart business owners you’ve insured your assets from theft or damage.

What would happen if you or one of your key people died prematurely or suffered a life-threatening illness?

Every Company has Key PeopleKey Person Insurance

You probably don’t have to look far to identify people essential to your company’s success.

These are people with:

  • Proven ability to grow sales
  • Highly specialized technical skills
  • Personal relationships with valued customers
  • Responsibility for major projects

Whether it’s a valued employee, a business partner or yourself, each key person brings energy and expertise that can be difficult and costly to replace.

How would losing a key person impact your business financially?

Consider the effects of a key person’s critical illness or premature death.

  • Could it affect your short-term or long-term profits?
  • How much will it cost to replace the key person?
    • Recruiting $     ?
    • Training    $     ?
    • Relocation $     ?
  • Will creditors shorten payment terms or call in loans?

Insurance on you and your key people can help prevent an unexpected loss from financially harming – even destroying – the business you’ve worked so hard to build.

Key Person Protection – It’s Simply Good Business

Two proven building blocks for key person protection are life insurance and critical insurance.

Your business can use the insurance funds to:

  • Pay debts and expenses to help keep operations running
  • Find and train a suitable replacement
  • Increase cash flow to compensate for lost revenue
  • Assure creditors and suppliers that funds are available to meet commitments
  • Show customers that the business has the means to continue

Determine the value of your key people

Ask me how you can implement key person protection as part of your business plan. 519-860-4223

All-in-One Life Insurance Guide

What can life insurance do for you?

  • Protect the people who rely on you
  • Build value you can access during your lifetime

What types of life insurance are available?

  • Term life insurance
  • Permanent life insurance

Who needs life insurance?

  • People who are supporting others financially
  • Young and healthy people
  • Single people
  • People with assets or an estate to protect
  • People who want to leave something to charity
  • Parents who want to set up their children for success
  • Business owners

When should you buy insurance?

What about other types of life insurance?

  • Mortgage or creditor protection
  • Group life insurance

How do you select the right life insurance for you?

  • Professional advice

Read this guide, and talk things over with me to better understand the choices you have with life insurance. Making the right life insurance choice today can help both you and the people you care about most in the future.

Life Insurance Planning Solutions

Help protect the people who rely on you

Life insurance is one of the best ways to help protect the people who rely on you. Buying life insurance shows you are Life Insurance Guidecommitted to creating a positive future for your loved ones and can reassure them that they will be taken care of.

When someone dies, loved ones left behind have to make important – and often difficult – decisions at a stressful time. Life insurance provides options for the people you care about, allowing them the time and financial help needed to make decisions. Insurance proceeds can be received within days. This money can be used to cover funeral costs and other expenses, such as:

  • Legal fees
  • Taxes
  • Outstanding medical expenses
  • Mortgage payments
  • Loan payments
  • Credit card bills
  • Child care

Life insurance can also help replace the loss of your income and help fulfill your future plans in your absence, such as funding a child’s education or your spouse’s retirement plans.

Build value you can access during your lifetime

Permanent life insurance provides an opportunity to grow cash value over time. You can use it to help you achieve your big goals in life: to supplement your retirement income, to help pay for your children’s education, to go towards starting a business, or leave as a larger legacy to those you care about. **

You can access this cash value in your life insurance policy several ways**:

  • Take out a loan
  • Make a cash withdrawal
  • Use it as collateral to help obtain a bank loan

What types of life insurance are available?

Term life insurance is temporary, low-cost coverage where your payments stay the same for a set period of time. When that time’s up you can renew your coverage at a higher cost or convert it to permanent life insurance without having to answer further health questions.

Permanent life insurance provides you with more security because it lasts a lifetime, as long as payments are made. It costs more than term insurance, but can grow money tax-free inside your policy over time (called cash value), which you can access while you’re still alive.*

Who needs life insurance?

Life insurance can help you, no matter what stage of life you’re in.

People who are supporting others financially

Whether it’s your spouse, partner, children, another family member or a friend, life insurance is a great way to help provide for the people who rely on you.

Young and healthy people

You may not think you need to have insurance if you’re young and healthy, but there are many advantages to buying it at this stage of your life.

  • Your payments for insurance will be lower when you’re younger, meaning you can afford more coverage. And that means a larger legacy for loved ones, or a charity you choose.
  • With permanent life insurance, it means more time to build up cash value.
  • Buying life insurance when you’re young ensures you have coverage if you later develop health issues. Single people Life insurance is an important part of your financial security plan. During your lifetime
  • You can use permanent life insurance to supplement your retirement income or support your long term goals.** After death
  • Proceeds from a life insurance policy can take care of final expenses, unpaid bills and other debts, or be left as a gift to a friend or loved one.

As a parent, you want the best for your children, but sometimes big dreams come with big costs.

People with assets or an estate to protect

Life insurance can play a very important role in preserving the estate you’ve built over your lifetime and can help you leave the most assets possible to your heirs. But as your estate grows, so can the burden of taxes and fees that may have to be paid when you die. Life insurance can help cover these costs, allowing you to pass on your estate as planned.

People who want to leave something to charity

Life insurance gives you the opportunity to leave a personal contribution to your favourite charity or nonprofit organization.

Parents who want to set up their children for success

As a parent, you want the best for your children, but sometimes big dreams come with big costs. Imagine being able to say yes to your child buying a car, traveling, having a dream wedding or purchasing a home because you’ve bought them permanent life insurance today. **

  • Any cash value that grows within the policy can be accessed during your child’s lifetime** and if it isn’t needed right away, your child can use it later to supplement their own retirement income.**
  • Buying your children life insurance now can help provide a lifetime of protection.

Business owners

When you own a business, your most valuable asset is your ability to create revenue. But what would happen if you or one of your essential employees suddenly died, creating a risk to your business? The ripple effect could be significant, jeopardizing your lifestyle and even those of other employees.

Protecting your business means more than just protecting its physical assets—it also means thinking about what will happen after you die. Will your heirs and any surviving owners be able to work together? Will your heirs need to sell the business to cover capital gains, probate fees and other costs?

Insuring yourself and your key people can help protect the business you’ve worked so hard to build. * If the accumulation stays within prescribed limits, the cash value is only subject to income tax when it’s withdrawn. **Borrowing or withdrawing money from your policy will reduce the policy’s death benefit and cash value.

When should you buy insurance?

Whether you’re just starting your career, supporting a growing family or preparing for retirement, life insurance helps you meet different needs at different stages of your life.

In particular, there are some key times when you should be thinking about your insurance needs, such as when:

  • Purchasing your first home or cottage
  • A child or grandchild is born
  • Starting a business
  • Succession planning
  • Taking on a new job
  • Getting married or divorced
  • A parent or spouse dies
  • A child leaves home
  • You’re approaching retirement

Mortgage or creditor protection

These are types of term insurance offered by lending institutions as part of their mortgage loan or line of credit products. They provide simple, low-cost insurance to cover the balance owing if you die before the mortgage or line of credit is paid off.

However, there are some important differences between mortgage, creditor and individual life insurance. When it comes to mortgage or creditor insurance:

  • The lender or mortgage broker owns the policy
  • Your coverage typically decreases as your mortgage is paid down
  • The insurance money can only be used towards the balance of your mortgage
  • Often, you can’t make changes to your coverage as your needs change
  • Your coverage ends when your mortgage or debt is paid off

Group life insurance

If you’re working, there’s a good chance your employer offers group life insurance. You may also have group life insurance through an association, professional body, union or club.

While this form of insurance provides simple, low-cost coverage, there are some important differences between group and individual life insurance.

  • Group life insurance normally provides basic protection or benefits. Unless you get added coverage, your insurance could be significantly short of your actual needs
  • Group insurance benefits are pre-set and not personalized to your specific situation
  • You’re often only insured as long as you’re part of the group
  • Employers own their employees’ coverage and can change it at their discretion, based on an annual review

What about other types of life insurance?

Get professional advice

Life insurance is definitely not one-size-fits-all and buying coverage that meets your current and future needs can be complex. That’s why professional advice is essential. I can advise you by:

  • Take the time to understand your personal financial goals, insurance needs, risk tolerance, and how hands-on you want to be in managing your insurance
  • Help you evaluate your options and select the type of insurance that’s a good fit for you now, and in the future

Protect Your Family’s or Business Well-Being

Life is full of risks, and most we simply have to accept. But some we can do something about. Life insurance is an essential tool in protecting a family’s economic well-being if a partner or parent dies.

Life insurance is designed to pay loved ones a tax-free lump sum death benefit if you die. The benefit should be large enough to allow them to have the lifestyle and choices that your financial security plan set out to achieve.

  • Personal insurance policies represent an important part of prudent financial security planning.

The money from the death benefit can be used as needed. Some examples may be to help pay off debts, help ensure loved ones can afford to remain in the family home or pay for the children’s education. The benefit can also be used to help ensure the well-being of a sibling with special needs, or aging parents who lack adequate retirement savings.

Protect Your Family

Good business

Life insurance could also play an indispensable role in protecting a business. If you and a business partner start a company, you should each have a life insurance policy. The reasons make pure business sense.

The death of one business partner may have a significant impact on the company’s operations and life insurance can help the surviving partner manage through the resulting challenges. Life insurance can provide funds to allow the surviving partner to buy out the deceased partner’s share in the company without having to sell assets. Moreover, the deceased partner’s family receives the full amount they deserve from selling their share of the company.

Research tools

There are many online resources and calculators to help you learn about the different life insurance options and coverage needs. The large variety of options allows you to customize a policy to fit your needs, and that may include the flexibility to increase coverage as needed.

Professional counsel

Once you have done some primary research, you can consult me. Life insurance may play a starring role in your financial security planning.

Value of Participating Life Insurance

Here is more information on the key components that determine the value of your participating life insurance policy.

Policy cash values

The cash value of your policy is composed of guaranteed cash values, as stated in your policy, plus non-guaranteed cash values generated by dividends credited to your policy. If you surrender your policy, you receive the total cash value, less any indebtedness.

Investment performance for the long term

Participating life insurance is, first and foremost, life insurance. However, the investment performance of the participating account is an important component in the long-term value of your policy. The participating account assets are managed by London Life’s investment division. This is the experienced group of professionals who manages assets for London Life. The assets in the participating account include publicly traded government and corporate bonds, residential and commercial mortgages, corporate lending, real estate, equity-related investments, short-term investments and policy loans. The investment returns associated with the participating account are reflected in the dividend scale through the dividend scale interest rate. Historically, even during times of rapid economic change, the participating account’s dividend scale interest rate has been relatively stable.

The high quality of investments, and the long-term investment strategy help stabilize the variation in the investment returns used to determine policyowner dividends.


If you’re looking for life insurance built on a foundation of guaranteed values with an established history of proven performance, London Life participating life insurance may be right for you.

London Life participating life insurance policies have an excellent track record of
investment performance.

As with any financial vehicle, a small change in investment returns can have a significant long-term impact on the dividends, values and features in your policy. To better understand this sensitivity for your specific policy, refer to the policy illustration your financial security advisor gave you and compare the reduced example to the primary example.

For more information on the investment returns of the participating account, ask your financial security advisor for a copy of London Life participating life insurance financial facts.

Increasing life expectancy

This is a unique feature of participating life insurance. As people live longer, positive mortality experience is passed to policyowners through dividends. In general, every decade of the last century has shown continuous mortality improvement based on data from Statistics Canada. Each year we review our mortality experience and take it into account in determining policyowner dividends.

Expense management

London Life has the largest Canadian participating account, as measured by assets. This provides economies of scale for expenses and investments. Expense management focuses on controlling expenses for the benefit of participating policyowners and shareholders.


One of the unique benefits of participating life insurance is the opportunity to earn policyowner dividends. As a participating policyowner, you benefit from the success of the pool of participating policies, through the receipt of policyowner dividends. Dividends are not guaranteed and vary up or down from those illustrated, depending on future dividend scales. The dividend scale is affected by investment returns, mortality experience, expenses, taxes and other factors associated with the participating account.

The dividends credited to your policy have a cash value. Once credited, this cash value is vested and cannot be reduced or used in any way without your authorization, other than to pay premiums. Before the first dividend is credited, the premium due on the first policy anniversary must be paid. A policy loan, including a premium loan, doesn’t reduce your dividend. Your policy continues to receive dividends as if the loan didn’t exist. Any outstanding loan, including interest, is repaid from the cash value if you surrender the policy, or from the death benefit when the insured person dies. When determining the net cost of your policy, you should consider both the premiums charged and the dividends returned over time. The philosophy behind London Life participating life insurance is to provide participating policyowners with life insurance at a cost that takes into account the long-term performance of the participating account.

Strength of London Life

Life insurance is a promise that may not be put to the test for 30, 40, 50 years or more. This means the long-term financial strength and claims-paying ability of your insurance company are vitally important.

  • London Life – a vital Canadian business since 1874
  • London Life has helped Canadians meet their financial security needs since 1874.
  • London Life has distributed policyowner dividends, providing value to its participating policyowners, every year since 1886. The participating account has experienced more than a century of sound management, and that dependable management approach still applies.

London Life is a subsidiary of The Great-West Life Assurance Company. Together, Great-West Life and its subsidiaries, London Life and Canada Life, serve the financial security needs of more than 12 million people across Canada. Great-West Life, London Life and Canada Life are members of the Power Financial Corporation group of companies.

Maximizing and Protecting Your Wealth

Life can be complicated. Maximizing and protecting your wealth doesn’t have to be.

Integrated advice will ensure your wealth is viewed from every angle. From tax advantages and protection against Protect Your Wealthmarket volatility to identifying opportunities to increase your portfolio, a sound financial security plan gives your wealth the attention it deserves.

Lean on our objective advice. You should feel confident about the decisions you make about your wealth, your legacy, and your future generations.

You know how to build your business. Let me help you build your wealth with a financial security plan that can help you:

  • Increase returns
  • Take advantage of tax-efficient strategies
  • Make the best use of your cash flow and capital
  • Protect your business from volatility
  • Prepare for transition

Like a regular health check-up, scheduled regular reviews can help ensure the health of your plan, and help you grow your wealth. Give me a call 519-860-4223.