Protect Your Business with Corporate-Owned Life Insurance
Rogers Insurance will work with your business to create tailored corporate-owned life insurance solutions to ensure your company will continue to run smoothly even when tragedy strikes.
Areas We Serve
- Red Deer
- Fort McMurray
Understanding Corporate-Owned Life Insurance
Corporate-owned life insurance is a form of coverage that is designed to protect your company. This is different from employee group life insurance, which protects your staff and their beneficiaries.
Your business will be named the beneficiary (partial or total) of a corporate-owned life insurance policy, in which the listed insureds will be your key employees—an owner, partner, CEO, CFO or any other top employee. Tailored business insurance helps to keep your company up and running should one of the insured employees unexpectedly pass away or become injured.
Solutions we provide include:
Buy-sell funding agreement
Buy-sell funding that is covered by corporate-owned life insurance provides business partners with a financial security net in the event that one of the co-owners passes away. It is a legally binding contract that protects you, the business, and the deceased’s spouse and family.
Let’s say, for example, you were to pass away. Your surviving co-owner(s) would receive the policy death benefit, which they would then use buyout your business shares from your family.
A key benefit of buy-sell funding is that co-owners do not have to drain their personal or business assets to buyout the deceased’s partners interest in the business. It also guarantees the deceased’s family will be financially secure during this challenging time.
Key person insurance
The sudden death of a key employee can be devastating in many ways—including the loss of critical expertise, knowledge and relationships that your company relies on for success.
Key person insurance is a corporate-owned life insurance policy that helps your business minimize disruptions and financial damages in such a situation.
For example, the benefit can be used to cover the costs to find and train a suitable replacement as well as to offset the loss of any delayed or cancelled business projects that the key employee was involved in.
Or, if the business feels it cannot continue to effectively operate without the key employee, they can use the benefit to smoothly close the business, including paying debts, shareholders and severances.
Business loan protection insurance
Business loan protection insurance is another form of corporate-owned life insurance taken out on a key employee—typically a director or owner who is named the as the guarantor on the loan.
The unexpected death of the loan guarantor may cause creditors to demand immediate repayment of loans. Without the right protection, this may require your company to liquidate assets or even the business itself.
Fortunately, loan protection coverage can provide tax-free funds to repay debts and loans, protect the personal assets of the business and remaining partners, and ensure your company can continue to operate.
Corporate-Owned Life Insurance Can Keep Your Business Running
In Canada’s competitive marketplace, your business can’t afford to stop or slow down. Unfortunately, this is what can precisely happen if a key member of your organization is injured or unexpectedly passes away. Here is how corporate-owned life insurance can benefit your business:
Corporate-owned life insurance can provide the necessary funds needed to keep your business running should the owner, CEO or another integral employee suddenly pass away or become incapacitated. This could include coverage for business expenses and loan payments.
Corporate-owned life insurance can provide your business with funds, and therefore time, to find an adequate replacement in the wake of the unexpected death of the business owner, CEO or other critical team member.
Attract top talent
Business partners’ families depend on the company for their livelihood. A corporate-owned life insurance policy can help attract top talent by ensuring surviving family members will receive their share of the company upon the unexpected passing of a business partner.