Here Are 6 Reasons Why Prudent Business Owners Use Life Insurance

Number 1. For estate taxes, on the deemed disposition of assets on the second to die of a husband and wife. Your 10-million-dollar net worth might only be worth 6 and a half million dollars because of tax. Wouldn’t it be more beneficial to pay those taxes at a discount instead of full price?

Number 2. For estate equalization. Mum and dad started a business, they might have three kids with one of them in the business and the other two out of it. They want to be fair and equal. Wouldn’t it be beneficial to create a guaranteed buyer to make sure that the kids out of the business get their fair share and, ultimately, maintain family harmony?

Number 3. To fund shareholders agreements or buy sell agreements between partners in a business. Are you so madly in love with your business partner’s spouse and their lawyer that you want them as your new partner? Wouldn’t it make sense to get your sweat equity out of the business at full price?

Number 4. To protect the brains of your operation. What happens if they go bye bye? Do you have an heir apparent in place? Wouldn’t you want to have a lot of money available to find the biggest rock star out there to acquire them to continue to help you run the business?

Number 5. To maximize and keep more of your retained earnings. If there were a way you could move forever taxed corporate savings from an always taxed pocket to a tax-exempt pocket, how much would you want to move every year?

And finally, Number 6. To take care of the people and organizations that matter to you. They say you live once and die twice – once when you physically expire and second when people stop talking about you. What if you could put a big asterix beside your name and mark your spot in life by converting taxes into charity?

You don’t have to like life insurance to love what it can do for you.

If you’d like to see what this could look like for your situation, contact me when you’re ready.

🌐 www.sunlife.ca/andy.kovacs ☎️: (289)-818-1741 📧: andy.kovacs@sunlife.com  

Andy Kovacs

President, Moments of Truth Insurance Services | Sun Life