- July 3, 2019
- Category: Life & Group
A Double Win for Business Owners: Split Dollar Critical Illness Protection (CI)
IF something valuable was soon no longer going to be offered, when would you want to know?
A CEO of a national life insurance company told me changes are coming.
The Canadian life insurance market represents 3% of global insurance sales. We have been left alone to date. Canada is one of the last countries in the world offering some of the life insurance benefits we enjoy.
This will soon change.
Example: Critical illness protection with 100% return of premium and guaranteed lifetime premiums.
Yes, you read that right; 100% return of premium.
Critical illness (CI) provides money to businesses when a life-threatening illness is diagnosed.
Benefits are paid in full with no restrictions on what the money is used for.
Coverage can be arranged on business owners and key employees.
There’s a way to structure plans so that business owners are the beneficiary of the return of premium.
The return of premium (ROP) is payable at expiry if there was never a claim on the policy.
Summing up critical illness is a 2 in 1 tool:
- Important protection while running your business
- Supplement to retirement income
These plans were available in the US and Europe but are no longer available. We have rising rates of critical illness and mounting health care costs, which makes these plans increasingly unprofitable for insurance companies.
A global insurance treaty will be signed in the next 1-2 years. There are many items on the agenda. One of them is a guaranteed price, 100% return of premium CI.
Plans set up before the changes will be grandfathered because they are contractual.
For more information contact me for a no-obligation quote.
Sub-Broker with Cluett Insurance