• Small Business Planning
• Commercial Insurance
• Collateral Coverage
• Key Person Coverage
• Group Healthcare and Dental Care Benefits
• Group Retirement Plan
• Succession Planning
• Shareholder/Partnership Agreement Planning
• Corporate reorganization - Estate Freeze
• Professional Service Referrals

Collateral Coverage

The adage “you have to have money to make money” has held true for many years. Most of the small business owners use the following sources for start up capital:

• Self-Financing by the owner through cash, equity loan on his or her home, and or other assets.
• Loans from friends or relatives
• Personal savings
• Banks
• Credit Card debt

Owners are vital to their businesses and the loss of an owner, (such as death, disability and critical illness) could seriously harm the stability, cash flow and reputation of the company. In Order to protect your assets and your repayment ability, and to recover your capital, life, disability insurance and critical illness insurance for business owners are very important.

And the Lending institutions (like banks), often requires life insurance to be placed on the owner(s) to ensure the loan will be repaid in the event of death. Since this is a cost of doing business, all or a portion of life insurance premiums paid by the business may be tax deductible. There is certain requirement s for obtaining a deduction.

Talking to our advisors can help tailor a collateral insurance package to fit your needs.