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Group Insurance

Is it possible to know the compensation level of my group insurance advisor

Yes. An advisor’s compensation level is part of the administrative cost of your group insurance plan. It is normal that you should want to estimate this cost like any other of your service providers.

Can I ask many group insurance advisors to carry out a market survey?

It is not advised to ask many group insurance brokers to carry out a market survey. The main reason is that insurance companies will only submit quotes to one broker at a time. Furthermore, a broker must be mandated by writing. It is recommended that you chose your broker based on his/her services offer before proceeding with a market study.

What are some of the selection criteria for a good group insurance broker?

There are many group insurance brokers, but not all are created equal! You must choose according to criteria such as: the amount of current premiums, the number of groups currently enrolled, years of experience, the advisor’s education and training, the services offered, the compensation level compared to the amount of work to be done.

How often do I have to do a market survey?

The answer resides with the group insurance advisor that has a thorough knowledge of your account. We can however assert with confidence that testing the market every three years is a sound policy. This being said, loyalty to your current group insurance most often pays off in the long run. Changing group insurance policy is a decision that must be well weighted and not to be taken lightly.

As an employer, can I contribute to the short term and long term group disability insurance plan?

Yes. The tax and financial impacts of such a decision must be first worked out precisely. It might be more advantageous that the employer first pays the disability insurance premiums. Contact us for more details.

Personal Insurance

Are my disability insurance premiums deductible as a business expense?

No. If the company pays the premium, this is not a deductible expense. The premium is then considered taxable. Please note however that a plan for two insured might be set up to make the premium tax-deductible for the company. Contact us to know if this strategy can work for you.

What are key employees?

A key employee is an employee or a partner/owner whose competencies and intellectual capital are so precious to the company that if he should die or become disabled, the company might experience major financial loss.

This person might possess knowledge, skills, or competencies that are uncommon. His professional area of expertise might be very specific or highly specialized (like design and research) and his specific skill combination might not be found elsewhere in the company.

These skills might be more a manifestation of personal qualities such as creativity, dispositions, and interest than the result of training and experience.

My tasks have changed, I have switched jobs, or I sold my company since I have bought my disability insurance plan. Is my policy still valid?

Generally, yes. However, there is a strong chance that your protection levels do not correspond to your present needs and that the policy premium could be adjusted downward if your current job has less disability risks.

Why is the insurer asking for my income tax form and financial statements when I am submitting my application for disability insurance?

One must understand that this is an income replacement program in the event of a disability. The maximum benefits paid out are relative to your earned income up to a maximum of 80 to 90%, depending on your insurer.

Is it better to apply for disability insurance or critical illness insurance?

There are two types of protection plans. The disability policy provides a monthly income replacement while the critical illness will pay a lump sum to offset financial consequences of such an illness. Many critical illnesses do not prevent you from working. In that case, you would not be able to file a disability insurance claim.

Disability insurance is generally a must for any self-employed, professional, and business owner to protect his/her most important financial asset: being able to earn an income!

I have accumulated substantial assets and I am wondering how to pass them on without any problem to my heirs?

This situation requires a good tax and estate planning strategy. As a result of this exercise, you will have a clearer picture of how you should proceed to meet your objectives. Have your situation assessed: You might even be eligible for a free analysis. Contact us to know the details.

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