Name: Wealth Growth
Address: North Vancouver, BC, CA
Telephone: +17789907417

Question 1

What financial strategies should business owners consider?

Accepted Answer

Business owners often benefit from looking at personal income protection, business continuity planning, and how corporate and personal savings interact. Because owners typically lack employer-provided benefits, personal disability and life insurance are commonly reviewed early. For businesses with partners, arrangements such as buy-sell agreements funded by insurance are worth exploring with legal counsel. On the savings side, understanding the tax implications of salary versus dividends, and how retained earnings might support retirement, generally involves both a financial advisor and an accountant working together rather than a single strategy applied uniformly.

Question 2

Why might a business owner need personal disability insurance?

Accepted Answer

Without an employer to provide group disability coverage, a business owner who becomes unable to work due to illness or injury may face a direct loss of income with no automatic safety net. Personal disability insurance can be structured to replace a portion of income during a covered period, which may help maintain personal expenses and support the business's operating costs while the owner recovers or arranges alternative management. The right coverage amount depends on how the business generates revenue and how dependent it is on the owner's active involvement.

Question 3

What is a buy-sell agreement and how does insurance relate to it?

Accepted Answer

A buy-sell agreement is a legal arrangement between business co-owners that outlines what happens to an owner's share of the business if they die, become disabled, or leave under certain conditions. Life insurance is often used to help fund the buyout, providing the remaining owner or owners with funds to purchase the departing owner's share without needing to liquidate business assets. Setting this up correctly involves legal drafting and coordination with a financial advisor to determine appropriate coverage amounts based on the business's value.

Question 4

How does corporately owned life insurance fit into a business plan?

Accepted Answer

Some incorporated business owners use corporately owned life insurance as part of managing retained earnings within the company, since certain policy structures can offer tax-related features under current rules. This is a specialized area where the appropriate strategy depends heavily on the business's financial structure, retained earnings, and the owner's broader goals. Because of the tax and legal complexity involved, this type of planning is generally done collaboratively with an accountant and legal advisor alongside a licensed insurance advisor, rather than as a standalone decision.

Financial Planning for Business Owners

Common planning priorities

Protecting income without an employer safety net

Planning for business continuity

Balancing personal and corporate savings

Preparing for eventual transition or sale

Questions worth asking an advisor

Questions from business owners

What financial strategies should business owners consider?

Why might a business owner need personal disability insurance?

What is a buy-sell agreement and how does insurance relate to it?

How does corporately owned life insurance fit into a business plan?

Let's start with a conversation.