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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. We’ve created this quick checklist to help you ensure you have not overlooked something that may be vitally important.

Please take 60 seconds now,  and review the checklist below. If there is anything you know you should take action on, be sure to contact your advisor now. 

Business Planning

1.    If you have a partner or shareholders, when is the last time you reviewed your shareholder’s agreement?  

  • Is it signed?
  • Is insurance funding adequate to current business valuation? 
  • Is it missing a page? Does it include death, disability, critical illness, retirement, divorce? 
  • Any new partners or shareholders to insure? 
  • How does this provide you and your family adequate guaranteed income independent of the business? 
  • If no agreement with partners or shareholders, why no agreement? 
  • What’s your exit plan?

2.    When is the last time you reviewed business loan protection requirements?  Debt is a top reason many businesses fail.

3.    When is the last time you reviewed key person protection requirements?  

  • Should protection be increased to match the current valuation? 
  • Any new key people?

4.    Does insurance coverage include the 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?

7.    Do you have any assets outside the business where a little planning would make a big difference?  

8.    If there are family outside the business, how are you equalizing?

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Employee Benefit Plan 

1.    If you are relying on your Long-Term Disability (LTD) coverage, does it fully cover your income – salary and dividends? Is there a cap that discriminates against you and others?

2.    When was the last time you reviewed your LTD Non-Evidence Maximum (NEM)? 

3.    When was the last time you advised your employees that they may be eligible for additional coverage, so you’re not potentially liable?

4.    When was the last time you reviewed Traditional vs Health Spending Account for potential cost savings?  If you don’t have a plan, are you aware it’s 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 savings? If you don’t have a plan, should you consider it?

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At DO Financial, we can help Ontario business owners like you plan for the best outcomes and get the whole picture. If this checklist made you aware of some things that need to be reviewed in your business, we would love to help you. Schedule a free consultation with us by clicking here.

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