Some insurance products are specifically designed to protect an incorporated company from the consequences of a critical illness striking a company owner or shareholder. Also available for key employees who may not be shareholders*, such products can provide coverage that offers both tax efficiency and financial benefits.
Here’s an overview of these “executive health plans.”
*Note: if the employee is not a shareholder, the tax authorities may deem the payment of the health benefit to be a taxable benefit received from employment. As the determination of the value of this benefit is a question of fact, clients should seek independent tax advice in this regard.