Living Benefits
Living Benefits for Business Owners:Protect Your Health, Wealth, and Legacy
As a business owner, your greatest asset isn’t your office building, your brand, or even your team—it’s your ability to earn and lead. If a serious illness, injury, or health crisis hit tomorrow, would your business and family be financially secure?
That’s why successful business owners prioritize Living Benefits. These strategic protections cover you during your lifetime, not just at death—ensuring continuity, minimizing financial disruption, and maximizing tax efficiency.
That’s why successful business owners prioritize Living Benefits. These strategic protections cover you during your lifetime, not just at death—ensuring continuity, minimizing financial disruption, and maximizing tax efficiency.
The Risks of Ignoring Living Benefits
Many business owners have life insurance, yet overlook protection for illnesses or disability. But the reality is stark:
- You’re 5 times more likely to become disabled or critically ill before age 65 than to die prematurely.
- An unexpected health crisis can lead to loss of revenue, forced asset sales, or business insolvency.
- Long-term illness and healthcare costs can significantly erode your personal and corporate wealth.
Core Living Benefits to Protect Your Business & Family
Here’s what every business owner should consider:
Critical Illness Insurance (CI)
A lump-sum payout upon diagnosis of serious illnesses like cancer, heart attack, or stroke.
Business advantage
- Provides liquidity to maintain business operations or fund succession plans.
- Covers debt obligations, replacing lost revenue, or providing flexibility to step away temporarily.
Return of Premium (ROP)
- If you never claim, the premiums paid can be fully refunded at the end of your policy term—making coverage effectively cost-neutral.
Disability Insurance (DI)
Replaces a portion of your income if illness or injury prevents you from working.
Business advantage:
- Ensures continuity of your income stream, protecting personal lifestyle and business expenses.
- Premiums may be structured tax-efficiently (potentially deductible when corporately owned).
Long-Term Care Coverage (LTC)
Pays for care expenses if you need support due to aging, chronic illness, or permanent disability.
Business advantage
- Protects your business and personal wealth from erosion due to significant long-term care costs.
- Ensures dignity, choice, and control over your care and financial assets.
Best Doctors / International Health Access
A specialized benefit connecting you to the world’s leading medical specialists for second opinions and advanced treatments.
Business advantage
- Fast, expert answers can significantly reduce downtime and uncertainty.
- Enhances your health decisions, providing critical peace of mind.
Health Care Spending Account (HCSA)
A corporately funded, tax-efficient account allowing coverage of medical expenses not covered by traditional plans.
Business advantage
- 100% deductible to your corporation, tax-free benefit to employees (including owners).
- Highly flexible; covers health expenses tailored to your unique needs.
Making Coverage Cost-Neutral with Return of Premium (ROP)
Business owners appreciate value. With Critical Illness Insurance especially, many plans offer Return of Premium (ROP)
- At policy maturity (e.g., after 15–20 years) if no claims are made, you may receive 100% of your premiums back.
- Your cost becomes only the opportunity cost of funds, making protection effectively “no net cost.”
This means you’re not just paying another bill—you’re creating a safety net that might never actually cost you a dime.
Why Smart Business Owners Use Living Benefits Strategically
- Protect your business from financial crisis due to health issues.
- Maximize corporate tax efficiency by owning benefits corporately.
- Provide tax-efficient employee retention and key-person incentives.
- Secure your legacy, ensuring your family and business remain strong regardless of health setbacks.
🔑 Your Next Move
You insure your building, vehicles, and equipment—why wouldn’t you insure your greatest asset: you?
Let’s build a customized living benefits plan that protects your business, enhances tax efficiency, and safeguards your future—while potentially refunding your premiums if unused.
Smart planning today means peace of mind tomorrow.