Customplan Financial

Business Coverage

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Grouped Critical Illness

Grouped Critical Illness insurance will allow the employer to put together a common plan whereby two or more employees are covered by individual Critical Illness policies. This is NOT a group insurance plan, as it does not consist of a single contract with several insured employees. As the employer, you are the owner of the plan and pay the premiums for the individual policies for your employees. These premiums are tax-deductible. Each employee is covered by a policy and is also the beneficiary. The premiums you pay are not taxable to the employee. The employer will determine the type of coverage and amount of the benefit received should an employee be diagnosed with one of the covered illnesses.

  Advantages for the Employer and Employees:  

Employer
  • Premium deductible as an expense
  • Way to award current employees and attract new ones
  • Opportunity to offer a product not widely offered through group insurance plans
Employee
  • Non-taxable benefit where employer pays premium for employee
  • Should a claim be made, the benefit is not taxed
  • If the employee changes employer, the employee can assume the policy by continuing to pay the premiums at the same cost and with no modifications to the policy
The above is meant to give a brief overview of Critical Illness coverage. For more information please contact us at (604) 687-7773 or email us at solutions@customplanfinancial.com

Life Insurance

Life Insurance provides you with assurance that your families will be taken care of should you die suddenly or after a prolonged illness. The Life Insurance benefit can be either a flat rate or based on a multiple of the plan member's earnings.

In addition to basic amounts of Life Insurance, Optional and Dependent Life Insurance are available. Medical evidence of insurability may be required for some coverage. This will be based on amounts requested and the number of individuals in our company.

For more information please contact us at (604) 687-7773 or email us at solutions@customplanfinancial.com

Disability Buy/Sell

These policies are designed primarily for partnerships and professional corporations comprised of two to five principals. Consideration may also be given to corporations and partnerships with six to ten principals.

These agreements are most often found within:
  • Accounting firms
  • Advertising agencies
  • Architectural firms
  • High-tech and computer firms
  • Medical practices and clinics
  • Engineering firms
  • Law practices
  • Employment agencies
  • Small manufacturers
Public corporations, husband-wife combinations, parent-child combinations and other relationships that do not meet the “arms length” test may be ineligible for Buy Sell insurance policies.

The business should be operating, or the partners associating, for at least three years. The business must also have a net worth of at least $50,000.

The owner of the policy may either be the corporation or partnership (entity purchase), or alternatively each owner can own a policy on each of the other owners (cross purchase). The entity purchase may be preferred when there are more than two owners involved as a means of reducing the number of issued policies. The existence of a formal buy sell agreement is highly recommended.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Business Overhead Protection

A Business Overhead Expense policy is designed for principals of closely held businesses or practices and owners of small businesses. It is an expense reimbursement policy that covers those fixed monthly business overhead expenses required to keep the business viable until the return of the owner, after a period of disability. This allows the business operations to continue until the insured either returns to work or makes a decision regarding the future of the business.

It is most vital with businesses and practices in which the owner’s ability to come to work makes the difference between the office being open or closed for business. Ideal prospects are physicians, lawyers, accountants, engineers and other individuals who own firms that depend on the owner’s ability to generate income to pay the bills.

All of these features, plus the fact that premiums are tax-deductible as a business expense, make the Business Overhead Expense policy a key component of any business owner’s financial security plan. It ensures that business continues when a disability occurs.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Key Person Protection

Key Person Protection is designed to provide coverage for a financial loss to an employer due to the disability of a key person.

A key person is an employee whose services are of such a nature that the owner would suffer substantial financial loss due to the employee’s total disability.

These employees offer their employer knowledge, skills or talent that few others can imitate or duplicate. The industry they work in or the nature of their work may be so specialized that there are few others with the skills needed. Many of these occupations have a component of design or research to them. Typically, the unique skills possessed by a key person are not totally acquired through education or even experience but are attributable in part to their own creativity, talents and interests.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Disability Business Loan Protection

Business Loan Protection policy has been developed to make funds available to pay outstanding business loans and loan interest when the business owner becomes totally disabled.

The company must be a partnership, sole proprietorship or professional corporation which has been in business for at least three years with a net worth of $50,000. The insured must have at least a 25% ownership interest. Examples of eligible loans include loans for equipment, property and buildings used for the sole purpose of operating a business.

The lump sum plan also covers lines of credit and account overdrafts.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com

Income Loss Replacement Plan (ILRP)

The Income Loss Replacement Plan is an arrangement between an employer and employees that provides the employees with an income during disability. This arrangement may be formal or informal. The employees are insured under individual contracts of disability insurance pursuant to a common plan. The ILRP is an alternative method of grouping individual disability income policies without the use of a Health and Welfare Trust. An ILRP may be established for as few as 2 employees.

The Basics of an ILRP:
  • The employer is the owner of the individual disability contracts
  • The premiums are paid by the employer and are deductible business expenses
  • The premiums paid by the employer are NOT taxable benefits to the employees.
  • The disability benefits under the policy will be paid directly to the employee.
  • Any disability benefits received by the employee while a member of the plan will be taxable.

For more information please contact us at at (604) 687-7773 or email solutions@customplanfinancial.com