The Executive Health Plan (EHP) provides Canadian-owned incorporated business owners with the opportunity to hold critical illness coverage. The costs are shared with the company and so are the tax and financial benefits.
The success of a company depends largely on the contribution of key leaders, employees and partners. The sudden loss of one of these key contributors, even temporarily, can threaten the future of the company. The EHP helps hedge this risk to enable business leaders to protect against the economic risk caused by the serious illness of a shareholder or key employee.
And, if the key employee/shareholder remains healthy, he/she can claim the health benefit. The health benefit is the Return Of Premium (15 year or 20 year) which is 100% return of all premiums paid including those premiums paid by the Company. This potentially substantial benefit is an effective and innovative way to ensure the Business is protected in the event of a critical illness but also a very tax efficient way to transfer funds from the retained earnings of the Company to the shareholder/key employee at a pivotal point in time.
To learn more about EHP, please watch the Desjardins Minute video below.
Desjardins offers the best structured shared ownership CI in the industry and the most comprehensive advisor tool kit to help you market the EHP strategy to your clients.
