What happens if I have no family capable or interested in taking over the business after my death? Do I still need to implement the Succession Accord®?

Yes. It is even more important to protect the value of your life’s work for the benefit of your family, particularly your spouse, and to have the resources to offset the decline in value caused by your death. Your spouse will have the time to hire the talent required to maximize the value of the company for sale. Also, the Succession Accord® will encourage you to communicate your intentions to your family in advance, helping to minimize disputes after your death.

Why do I need life insurance when I have sufficient liquidity to pay my estate costs at death and to deal with the challenges brought on by my death?

Death is always traumatic for a family, and when a family business is involved it becomes even more complex. This puts everyone under unnecessary financial stress and creates uncertainly that can impact value and cash flow. A well thought out plan and the resources to fund its execution can protect the wealth that the business owner created.

What happens if I plan to sell the business? Why would I need life insurance?

The insurance is not needed, but it will be important in creating permanent tax efficient wealth in the family for generations. If the business is sold, you still own the life insurance and it becomes the safe capital portion of a more diversified portfolio.

What makes the Succession Accord® unique?

There is no other product available that can provide financial security to your family by protecting the continuity of your business as well as confirm your plan for ensuring that family members or management capable of carrying on the business get ownership and those who are not get the financial resources to pursue their dreams. The cost of this product can be funded by reallocating passive assets inside the corporation from a taxable to a tax exempt environment.

So, The Succession Accord® isn't just a life insurance policy?

No. That's only one part. There is also a signature document template to organize tax and legal affairs to ensure the first key steps in family business succession are implemented immediately.

What are the unique benefits to this strategy versus keeping the money in cash or other guaranteed fixed instruments?

Aside from the obvious life insurance benefits of being able to create a sizable estate by paying only one premium, death proceeds in Canada are tax free and any growth inside the policy are tax sheltered. If the policy is corporate-owned and the beneficiary is the company, the life insurance proceeds flow into the company tax free, creating a significant capital dividend account and allowing value to be paid out tax free anytime in the future — unlike assets that are sitting in cash. The Canadian Succession Protection Company has the expertise from a tax and estate point of view to position the ownership and beneficiary designation for your benefit.

Why is the Canadian Succession Protection Company different?

It is the only life insurance agency in Canada focused exclusively on family succession issues from a protection point of view.