Comparing and Contrasting Insurance Plans

Insurance. Yup, I said it.

Shelley Bilodeau

Wealth Protection Specialist

Sustainable Wealth Management - Vancity

Overview

• Discuss how we determine insurance need • What is the effect of disability on your

pocketbook?• Statistics

• Benefit Plans• Employer liability and WCB• Types of plans available and their cost

• Benefit plans vs. a raise

• Buy-Sell agreements• Using insurance and a CDA to ensure continuity

Lifetime Insurance Need

Birth

School

Marri

age

Home Purchase

Childre

n

Post Se

c Ed

Debt Reducti

on

Retirement

Death0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

Temporary Need

Common Questions:

How much insurance do I need?

What type of insurances should I have?

What is Critical Illness Insurance?

Is my Disability insurance from work enough?

Common Objections:

I don’t believe in insurance…

I don’t think I’ll qualify…

Medical testing is too invasive…

I have insurance at work…

It’s too expensive…

The Business Cycle

Common Questions

What is the cost?

Does everyone have to enroll?

How much should I get?

Why isn’t Critical Illness insurance an option?

Do I need short AND long term disability?

Why do I need key person insurance?

What about my business overhead?

Is it taxable to my employees?

Should I pay for 100%?

Common Objections

Cost.

I don’t know if I can write it off…

Too much paperwork that I don’t understand…

The cost of disability

With approximately 4 million residents, BC would have seen 18,056 injuries and 336 vehicle related deaths in 2009.

That means that, on average,51 people would not have made it into work each and every day…

Think about that for a moment…

That‘s 1 death and nearly 50 injuries per day.

… and that’s only car accidents.

What kind of impact does that have on our economy?

Hurt at work

Options for your workers:

WCB

EI Disability/Medical Benefits

Employer liability?

Extended benefits including Short and Long

term disability plans

Hurt outside of work

WCB? … nope

EI Medical Leave – yes....

Short Term Disability? Maybe…

Long Term Disability? Depends…

Stealing from your retirement? Likely…

then what?

Buy-Sell Agreements

• Why do you want one if you’re in a partnership?

Partner A Partner B

Partner B’s Family Deceased

Who do you want to be in

business with?

• How will you fund the agreement when your business grows?

• Key Person Insurance• Using the CDA

My best advice will ALWAYS include having my clients consult their Accountant and Lawyer.

Audience Participation Section!

Questions?