Employee Retention

Insurance strategies provide an excellent way for small business owners to retain and reward employees that are key to the ongoing success of the business. As opposed to paying additional salary, thereby increasing Company EI, CPP and WSIB payments and seeing much of the benefit of that salary increase taxed away in the employee’s hands by progressively higher marginal tax rates, implementing insurance solutions can deliver more value to the key employee.

For instance, a key person life insurance policy could be arranged so that the key employee could also benefit by using it for tax deferred savings to either save for retirement or provide for their family should they unfortunately pass on. In addition, ownership of the policy could be transferred to the key employee at the time of their retirement for their personal use.

Similarly, key person critical illness insurance could be used to protect the Company and retain the key employee during their critical working years, with a return of premium benefit paid tax free to the key employee at retirement.

We will work with you to develop insurance strategies that will help you retain your key employees. Why pay more taxes through salary increases when strategic insurance benefit arrangements can provide much more value and provide incentive for your key employees to stay with the Company?

Previous Page Top Of Page