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By: West Harbour Insurance  09-12-2011
Keywords: Insurance

New business owners are bombarded with start-up costs to no end.

From an insurance point of view, the government makes you insure your vehicles. The bank makes you carry property, business liability insurance and probably life insurance - to protect the bank`s interests if your assets are destroyed or if you die.

Often, unless a creditor demands it, life and disability insurance end up as an afterthought. However, when you think about it, where is the money going to come from to pay all the expenses and put food on the table if you are not working or die?

Businesses can have partners and key people to think of. Life and disability insurance can be an affordable way to fund a buy out or replacement fund if they should become sick or disabled.

As the business matures, some succession and estate planning is in order. This will enhance the value of your business, transfer it to the next generation and set you up with enough money for a good retirement.

If you life insure your loans and mortgage through a lending institution, this is for you.

The Problem:

If you take mortgage insurance coverage with the bank, the bank owns the policy and you pay the premium. If you die, the bank gets the money from the policy and it will pay out the balance of the mortgage. This will keep a roof over your family, but we have a better option for you.

The Solution:

The Problem:

How do your children that wish to farm have any assurance that they will ultimately receive the farm assets at an affordable cost? When will it occur? Will it be when one of the parents dies, or when the second parent dies? How do the parents transfer the ownership to the next generation at an affordable price and still have anything to live on in retirement? How do you deal with estate equalization for the non-farm children in a fair and equitable way? How do you maintain family harmony and unity at the end of the day?

The Solution:

Every farm and business solution is as different as the families and people involved with them. Open communication and planning is your greatest asset when you approach any big project on your farm, so this is no different.

We were dairy farm owners prior to becoming involved in the insurance business, so we bring first-hand knowledge and understanding of the special attachment that farmers have to their business. We also understand that it is not often obvious how you would approach transferring your assets to the next generation without putting them in economic distress but at the same time, providing you with a good retirement.

The Problem:

The bulk of your estate is tied up in a business held in partnership or has other shareholders. What happens if one of the shareholders passes away unexpectedly?

  • Does the business bring in the spouse of the deceased as their new partner? What will they be able to contribute to the business?
  • Will the bank lend any money to buy out the estate at this time of upheaval when a significant part of the productivity died with the deceased shareholder?
  • If there is a forced sale, what does your family live on during the months that it would take to do this?
  • How can you get a fair price for the business if it is a fire sale?

The Solution:

Save yourself time and effort by contacting us. We listen to your needs then offer sensible advice and easy to understand solutions. Now is the time to start "Insuring your success".

The Problem:

Every successful business has one or more key employees upon which the success of the business depends. It may be the president, sales manager, partner, inventor, designer, plant manager or any employee that makes an important difference to the bottom line.

The death or serious disability of a key person will bring a serious financial loss to the business not only because of the loss of expertise but also because of the high cost of securing and developing a competent successor. Not just anyone will do.

The Solution:

Some of the concepts of estate planning are useful with succession planning, but there are some differences. As a business owner, think of succession as planning your exit strategy from the business. Estate planning is what to do with your assets when you die.

Succession Planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players. Who is going to take over the operation and ultimately buy you out?

The Problem:

What if there are no suitable internal candidates available to replace the loss of a key person? It is not usual for an organization to insure the key people so that funds are available if she or he dies or becomes disabled. These tax-free funds are there for the business to cope with the problems while a suitable replacement is found or developed.

The Problem:

You or a key employee is hit with a prolonged life threatening illness with a lengthy convalescence period. How do you deal with the loss of productivity and the additional expenses associated with recovery?

The Solution:

A no strings attached tax free, lump sum payment 30 days after the diagnosis of a covered ailment. Critical Illness insurance can be used to replace wages, buy the shares of the disabled partner, modify the work environment or cover the unexpected costs of treatment etc. The choice is yours. This is one of the most beneficial products for business owners that we have to offer. If you develop a heart attack, stroke or cancer for instance, you would trigger the payout and it is up to you if you continue to work or not. With a typical disability policy, you would tend to be penalized for any time that you do go to work, and going to work is what a self-employed person does best.

You cannot buy home insurance when the house is already on fire and Critical Illness insurance is no different, we recommend that you place this coverage before you have any serious medical issues.

The Problem:

What if you or your partner suffers a long-term illness or injury, which makes it impossible to return to work? Where would the funds come from to buy out the disabled partner or to pay their wages and wages for their replacement?

The Solution:

The Problem:

When you travel outside of Canada or even outside of your home province, you may have medical emergencies not covered by your provincial health insurance plan. You could probably deal with the cost for treatment of food poisoning, but how would you deal with a serious illness or injury like a heart attack. That could cost thousands of dollars to treat if it occurred in the United States.

The Solution:

Buy Travel insurance to pay for:

  • Emergency hospital and doctor visits
  • Emergency assistance to co-ordinate and translate during insured emergencies
  • Transportation back home when a medical emergency requires
  • Return of a vehicle if you have to fly home
  • Plus a long list of other expenses

We can customize your travel insurance coverage to meet your needs, from annual policies with multiple trips per year, up to extended periods of travel outside of the country.

We can also cover your visitors to Canada who would not be eligible for provincial health insurance benefits for at least the first 3 months of their visit or students and business representatives living out of the country for extended periods.

Keywords: Insurance

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