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Many businesses are very busy and tend to put off reviewing their business financial security planning. Odds are you’re one of them.  

As a quick check to ensure you have not overlooked something that may be vitally important, please take 60 seconds now, not tomorrow, and review the checklist below. 

If there is anything you know you should take action on be sure to contact your advisor now.  If you don’t have an active advisor, or want a second opinion, be sure to contact me now. 

Business Planning 

  1. If you have a partner or shareholders, when is the last time you reviewed your shareholders agreement?  Its not uncommon for the answer to be years.
    a) Is it signed?
    b) Is insurance funding adequate to current business valuation?  Many are not. 
    c) Is it missing a page? Does it include death, disability, critical illness, retirement, shot gun, divorce?
    d) Any new partners or shareholders to insure?
    e) How does this provide you and family adequate guaranteed income independent of the business?
    f) If no agreement with partners or shareholders, why no agreement?
    g) What’s your exit plan?
  2. When is the last time you reviewed business loan protection requirements? Debt is a top reason many business fail.
  3. When is the last time you reviewed key person protection requirements?
    a) Should protection be increased to match current valuation?
    b) Any new key people?
  4. Does insurance coverage include return of premium?
  5. What is the tax grind on your surplus?
  6. When is the last time you reviewed your passive assets that may result in loss capital gains exemption? Ask us for our free information on passive asset and income strategies.
  7. Do you have any assets outside the business that a little planning would make a big difference?
  8. If there are family outside the business how are you equalizing?

Employee Benefit Plan

  1. If you are relying on your LTD coverage does it fully cover your income – salary and dividends? Is there a cap that discriminates against you and others?
  2. When is the last time you reviewed your Long-Term Disability (LTD) Non-Evidence Maximum (NEM)?
  3. When is the last time you advised your employees, they may be eligible for additional coverage so you’re not potentially liable?
  4. When is the last time you reviewed Traditional vs Health Spending Account for potential cost savings? If you don’t have a plan are you aware its much cheaper to have your business pay for your personal health expenses?
  5. When is the last time you reviewed your Group RRSP/pension? Are there potential cost savings? If you don’t have a plan should you consider?

If you have any deficiencies, we would love to hear from you!

13 Jun 2021

1-Minute Business Review

Many businesses are very busy and tend to put off reviewing their business financial security planning. Odds are you’re one of them. We've created this quick checklist to help you…

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