Permanent life insurance has several variations: whole life, universal life, variable life. All are designed to provide insurance protection for your entire lifetime, as long as you keep the policy in force.

Basic Features of Permanent Policies

Level premiums: Most permanent policies have premiums that remain level over the lifetime of the policy, even though the risk of death increases with age. To achieve this, the premiums charged in the initial years are higher than the risk you represent then and are invested to form policy reserves that subsidize the premiums paid in later years when you are older and the risk is higher.


Cash values: These reserves accumulate as a cash value, or cash surrender value. The cash value is available to you if you want to borrow against your policy or to cancel (surrender) it. (Usually, the cash value is not added to the face amount of the policy, which is paid out on your death.)


Non-forfeiture options: These are choices available to a policy holder if he or she discontinues premium payments on a policy. They allow the policyholder to keep the policy in force or to take a cash settlement.


Participating policies and policy “dividends”: A participating policy shares in the financial experience of the insurance company, and policy “dividends” are declared annually and paid to policyholders.

Premiums are based on conservative estimates of future expenses, death claims and interest or other investment earnings. When experience is more favorable than these estimates, a surplus is created, which allows the company to credit participating policyholders with dividends. Because dividends are based on future experience, such as costs and earnings, they are not guaranteed.

Variations of Permanent Insurance: Although every permanent insurance policy is designed to provide you with coverage for your entire life, the guarantees vary in different policies. This, in turn, affects the premium you pay.

Whole life: This is the traditional policy that fully guarantees the level of premiums you pay, the death benefit and the growing cash values within the policy.

Interest-rate sensitive policies: Unlike whole life policies, which use very long term interest rate assumptions, these policies use current interest rates, which can be adjusted periodically if interest rate levels change. This offers the policyholder the potential of getting more coverage for less premium, but it involves sharing some of the risk with the insurer. Premiums could be increased if interest rates decrease. On the other hand, premiums could be decreased if the reverse holds true.

Universal Life: The most popular and flexible of the interest-rate sensitive policies is universal life. It consists of two parts: life insurance and an investment account. You decide what to do with each part of the policy, and you can increase or decrease your premiums and your death benefit, within certain limitations. Earnings on the investment account may or may not be guaranteed, depending on the type of investment chosen. This is valuable to you because your circumstances change, and economic conditions change. For example, as a parent in a growing family, you may want more insurance coverage; as your family grows and becomes more independent, your focus may shift to investment as well as life insurance. 
 
Universal Life can be a way to accumulate wealth on a tax-sheltered basis*. If you like involvement and control over your finances, if you want life insurance that you can tailor to your changing needs over time, Universal Life may be best for you. One very attractive feature is the accumulation of investment returns that can be paid out to your beneficiary on a tax-sheltered basis at a later date.
Variable life: Here, the premiums usually are guaranteed, but the cash values vary according to the performance of an investment fund or other index. The death benefits may be guaranteed or may vary with the fund’s performance, subject to a minimum guarantee.

Term policies provide insurance coverage for a specified period (e.g., a fixed number of years, or to a set age) and then expire. A death benefit is paid only if you die during the term of the policy.

Term policies are commonly available for terms of one, five, 10 or 20 years, or to age 60 or age 65. The premiums usually remain level during the specified term but increase if that term is renewed (e.g., premiums would increase every five years on a five-year renewable term policy). They will also expire at a specific age that varies by company.

Most term policies are non-participating and do not include cash values or other non-forfeiture values. Hence, premium costs are lower than for permanent policies — at least when you’re younger.

TERM TO 100

Often categorized as a permanent plan, term to 100 policies provide life insurance coverage through to age 100.

Usually they don’t pay dividends or include cash values, though some may provide other non-forfeiture values. Accordingly, premiums are lower than for traditional whole life policies.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

We all deserve peace of mind when it comes to our health. But for those of us who don’t receive group health benefits through work, the out-of-pocket expenses that result from a lack of supplemental coverage can be a serious and ongoing concern.

Day-to-day expenses such as dental cleanings, filings, prescription eyewear and travel protection are just a few examples of health expenses not fully covered by government health insurance plans. They are expenses that can quickly add up, and still leave you vulnerable to the extra costs that may come as a result of an accident or unexpected illness.

We have a selection of Health and Dental Plans that offer increasing levels of comprehensive coverage for Prescription Drugs, Dental Services as well as core benefits such as vision care, accidental death and dismemberment, and hospital benefits.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

THE BENEFITS OF MORTGAGE INSURANCE:

Most people put a lot of effort into finding the right home, the right financing and the right home insurance, but spend almost no time thinking about how to protect this important asset in the event of an unexpected death or serious illness in the family. For some, it’s just easier to take the creditor insurance offered by their mortgage lender. For others, they may simply decline coverage because they haven’t been sold on the need. The key to mortgage insurance is: ELIMINATING MORTGAGE DEBT IN THE EVENT OF THE HOMEOWNER’S DEATH, and of HAVING EXTRA FUNDS AVAILABLE TO HELP COVER MORTGAGE PAYMENTS AT A TIME THE HOMEOWNER IS RECOVERING FROM A CRITICAL ILLNESS

Regular mortgage insurance will only pay off your mortgage if you die – the addition of Critical Illness will pay it off even if you get sick and DON’T die as this will eliminate the stress of the PAYMENT – what would you rather lose, your home or your mortgage?

MORTGAGE INSURANCE VS. BANK CREDITOR INSURANCE

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Sickness or injury can happen to anyone unexpectedly. Travel insurance provides assistance and security when you need it the most. Emergency medical costs outside Canada quickly add up to thousands and tens of thousands of dollars. Travel insurance protects your finances. Provincial medical plans don’t pay for much once you are outside Canada. Online Sign Up Here

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Everyone knows someone affected with a critical illness. You probably know colleagues, relatives, or friends you went to school with who have undergone chemotherapy or radiation treatment for cancer, or who have had heart surgery. They have survived the critical illness and may be working, traveling and enjoying life again. But their lives, and those of their families and business associates, have often been profoundly affected.

Critical Illness insurance is a form of protection that provides immediate funds to you upon diagnosis of a covered condition, like cancer, stroke, or a heart attack. Unlike other types of insurance that provide income replacement if you are seriously ill, critical illness insurance provides a lump sum tax-free benefit that can be used in any way you choose with no restrictions or claw-backs to benefits. When you survive 30 days following the diagnosis of a critical illness, critical illness insurance provides you with a lump sum tax free cash benefit.

Some Immediate Financial consequence when you suffer from a critical illness include:

Absence from work – You may be covered under disability insurance program and receive a portion of income each month you are not able to work. Disability insurance helps you to cover household expenses, but serious critical illness could be life altering. Receiving only a portion of your income may not be enough. Critical Illness can fill the gap.

The costs for home care during a period of illness and recovery – Your working spouse  may need to take a leave of absence to care for you or you may have to pay for private home care. With shorter hospital stays, you may find that home and private nursing care services are required to speed the recovery.

Treatment outside of Canada or other medical costs not fully covered under the provincial health plan – Critical Illness insurance can enable you to obtain treatment outside of Canada or pay for experimental treatment not covered under a health care plan.

Children’s education – A life altering illness can impact your ability to save for your children’s education. Critical illness insurance can fund your children’s education.

Early Retirement – If a critical illness results in early retirement or even a change in careers or reduced number of hours, your RSP savings may not be enough to support you

Critical Facts

• Age to Qualify Critical Illness insurance is available to individuals between the ages of 18 – 65
• Amounts Available Benefits range from $25,000 up to $2,000,000
• Who receives the Benefit? Most critical illness benefits are paid directly to the individuals insured under the plan and they decide how they wish to use the benefit. Payment of benefit is based on the medical diagnosis of a certified Canadian physician or specialist for the specific condition. Payment is not dependent on your inability to work
• Coverage Terms Most plans cover you until age 75, some companies also have plans available for coverage till age 100
• When are benefits payable? The Critical Illness Benefit is pay when you are diagnosed with a Covered Condition and you survive 30 days
• Other Information Other programs included in some Critical Illness Plans include: Best Doctors, and dialing living assistance

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Grouped Critical Illness insurance will allow the employer to put together a common plan whereby two or more employees are covered by individual Critical Illness policies. This is NOT a group insurance plan, as it does not consist of a single contract with several insured employees. As the employer, you are the owner of the plan and pay the premiums for the individual policies for your employees. These premiums are tax-deductible. Each employee is covered by a policy and is also the beneficiary. The premiums you pay are not taxable to the employee. The employer will determine the type of coverage and amount of the benefit received should an employee be diagnosed with one of the covered illnesses.

Advantages for the Employer and Employees:

Employer

• Premium deductible as an expense
• Way to reward current employees and attract new ones
• Opportunity to offer a product not widely offered through group insurance plans

Employee

• Non-taxable benefit where employer pays premium for employee; Should a claim be made, the benefit is not taxed
• If the employee changes employer, the employee can assume the policy by continuing to pay the premiums at the same cost and with no modifications to the policy

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Whether you own an individual disability insurance plan or have group disability insurance coverage, disability insurance is critical during working years. Disability, or income replacement insurance, is designed to replace your income if you are unable to work because of illness, or injury.

Typically, insurance will replace between 60% to two-thirds of your regular earned income. This disability income gap, as it’s called, is designed to encourage you to return to work and your full earning capacity as soon as possible. In most cases, coverage is sufficient to meet basic living expenses, but there may not be enough money to make regular RRSP contributions or save for your children’s education.  If you have any extraordinary disability expenses, or if your spouse has to take time off to care for you or the children, you may be forced to dip into your savings or borrow money to supplement your disability benefits.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

The Income Loss Replacement Plan is an arrangement between an employer and employees that provides the employees with an income during disability. This arrangement may be formal or informal. The employees are insured under individual contracts of disability insurance pursuant to a common plan. The ILRP is an alternative method of grouping individual disability income policies without the use of a Health and Welfare Trust. An ILRP may be established for as few as 2 employees.

The Basics of an ILRP:

• The employer is the owner of the individual disability contracts
• The premiums are paid by the employer and are deductible business expenses
• The premiums paid by the employer are NOT taxable benefits to the employees.
• The disability benefits under the policy will be paid directly to the employee.
• Any disability benefits received by the employee while a member of the plan will be taxable.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Attract and retain . . . attract and retain . . .

As HR professionals, it is a mantra that we are all too familiar with.  Our critical Labour shortage has created a climate where employers need to implement unique strategies to attract and retain key employees – one of the most important is benefit program enhancements.  Employees ranked compensation and benefits as the top two factors required for job satisfaction in a survey conducted this year by the Canadian Society For Human Resource Management.

As the trustees of their employees’ LTD programs, employers are adopting non-traditional benefit plans. These provide the stability and breadth to manage employee expectations and emerging demographic trends.

The baby boomers turned 60 this year and careful consideration is being given to the consequences on LTD premiums.  Companies are  losing  intellectual capital as the boomers start to retire; but with 75% of all LTD claims occurring between the ages of 55 and 65, companies are also faced with what are forecasted to be, unprecedented LTD premium increases.

“Combo” Long-Term Disability Plan Trends

Traditionally, employer sponsored benefits include a mandatory group LTD program.  These plans are subject to annual renewals whereby premiums are adjusted according to the group’s claims experience.  To manage demographic and critical illness incidence trends employers are implementing cost management tools such as integrated Long-Term Disability strategies.  
Combining individual LTD contracts with group programs (typically 50/50 policy split) allows employers to secure locked in premiums, guaranteed contract provisions, and higher non-medical maximums until an employee is 65.

Group LTD

Low cost without compromising quality.

Individual Disability offers enhanced product features:

• guarantees the contract provisions until age 65
• premium rates guaranteed to age 65 (not subject to annual renewal)
• fully portable

Working with specialized benefit providers to find creative solutions to these challenges will enable companies to contain costs, meet employee expectations and align with core business strategies.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

A Business Overhead Expense policy is designed for principals of closely held businesses or practices and owners of small businesses. It is an expense reimbursement policy that covers those fixed monthly business overhead expenses required to keep the business viable until the return of the owner, after a period of disability. This allows the business operations to continue until the insured either returns to work or makes a decision regarding the future of the business.

Premiums are tax-deductible as a business expense making the Business Overhead Expense policy a key component of any business owner’s financial security plan. Business Overhead Protection is vital in businesses and practices in which the owner’s ability to come to work makes the difference between the office being open or closed for business.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Funding of Buy/Sell Agreements (Disability, Life and Critical Illness coverage)

These policies are designed primarily for partnerships and professional corporations comprised of two to five principals. Consideration may also be given to corporations and partnerships with six to ten principals.

These agreements are most often found within:

• Accounting firms
• Advertising agencies
• Architectural firms
• High-tech and computer firms
• Medical practices and clinics
• Engineering firms
• Law practices
• Employment agencies
• Small manufacturers

Public corporations, husband-wife combinations, parent-child combinations and other relationships that do not meet the “arms length” test may be ineligible for Buy Sell insurance policies.

The business should be operating, or the partners associating, for at least three years. The business must also have a net worth of at least $50,000.

The owner of the policy may either be the corporation or partnership (entity purchase), or alternatively each owner can own a policy on each of the other owners (cross purchase). The entity purchase may be preferred when there are more than two owners involved as a means of reducing the number of issued policies. The existence of a formal buy sell agreement is highly recommended.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Business Loan Protection policy has been developed to make funds available to pay outstanding business loans and loan interest when the business owner becomes totally disabled.

The company must be a partnership, sole proprietorship or professional corporation which has been in business for at least three years with a net worth of $50,000. The insured must have at least a 25% ownership interest. Examples of eligible loans include loans for equipment, property and buildings used for the sole purpose of operating a business.

The lump sum plan also covers lines of credit and account overdrafts.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Key Person Protection is designed to provide coverage for a financial loss to an employer due to the disability of a key person.  A key person is an employee whose services are of such a nature that the owner would suffer substantial financial loss due to the employee’s total disability.

These employees offer their employer knowledge, skills or talent that few others can imitate or duplicate. The industry they work in or the nature of their work may be so specialized that there are few others with the skills needed. Many of these occupations have a component of design or research to them. Typically, the unique skills possessed by a key person are not totally acquired through education or even experience but are attributable in part to their own creativity, talents and interests.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

You, rely on the income you earn to cover personal living expenses and business expenses, but also to invest for retirement years. A sudden, unexpected accident or illness can dramatically affect your ability to earn an income and meet current financial obligations. A disability can also have a drastic impact on your ability to invest for the future.

In the event of disability, personal living and business expenses can be paid by benefits from income replacement and office overhead disability insurance. But what would happen to retirement savings? Not surprisingly, retirement savings are one of the first casualties of disability. Not only is funding curtailed, but you may even need to dip into the funds that had previously been set aside for the future.

In the past, many Canadians have been able to count on government benefits as their main source of income during retirement. However, as the population ages, most Canadians recognize that they must put aside funds for their own retirement years as they can no longer completely depend on publicly funded pension programs. The need for  protecting savings against the devastating affects of a disability has never been more important.

No financial plan is complete without guaranteed funding for retirement. You can do this by using a top quality disability plan designed for this purpose. A Retirement Protection Plan helps you maintain deposits to a retirement savings program while disabled.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Most people want to be able to make their own choices about the quality and type of care that they would receive, if they developed a chronic illness or cognitive impairment during their retirement or senior years. Quality care in a long-term care facility, or at home, is expensive. For example, a private long-term care facility can easily cost between $3,000 and $10,000 a month.

Long-term care insurance provides a daily benefit to cover the high costs of facility care. The daily benefit also could help provide specialized home health services from visiting nurse or therapists, which allows you to stay in your home and remain independent for as long as physically possible. You can buy long-term care coverage between age 40 to 80. This type of insurance is important during your final working years and throughout retirement. It assures you of quality care and could take away the fear of outliving your savings. It also can allow you to pass on your assets to your family.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Accidental Death & Dismemberment Insurance is generally offered in conjunction with Life Insurance coverage. The amount of coverage is usually equal to the amount of Life Insurance selected by the employer/employee. It provides employees and/or their families with additional benefits should the plan members die, lose a limb, become paralyzed, or lose their hearing, speech or sight as a result of an accident.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Under an ASO contract, an insurance company will offer all of the same administrative and claims services that would be provided under an insured arrangement, but the insurance company does not assume any financial risk or liability. The Client is fully responsible for payment of all benefits, claims and demands brought under the benefit plan or ASO contract. Plan administrators provide the following services:

Setup and maintain plan and financial records on administration systems.

• Issue and maintain the ASO contract, plan document and necessary financial documents to support the plan’s funding arrangements.
• Establish an operating account for the plan, which is credited with deposits and debited with paid claims, expense charges, pool charges, third party commissions (if any) and applicable taxes, and to which applicable interest is charged or credited.
• Provide preliminary training of plan administrators including an easy-to-follow administration kit.
• Regular bulletins and communications keep customers informed of issues that may affect their plan.
• Issue detailed monthly financial statements of all transactions in the operating account. These statements are issued about one week following the month-end.
• Provide medical underwriting services where applicable
• Offer benefit cost estimates and other similar actuarial services as needed to help customers understand the impact of plan design changes
• Our Web-based Group Benefits Reporting services offer a wide range of comprehensive claims and financial reports.
• Provide a comprehensive annual financial report within three months following the contract anniversary, showing claims and expenses incurred, deposits and interested credited for the year for each operating account, as well as combined results under the contract.
• Any surplus at year-end is discharged as directed by The Client. Any deficits are payable by The Client to the ASO provider within 30 days following our delivery of the annual financial report for the year.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Flex Plans

Flex benefits plans are growing in popularity in the Canadian workplace, because they offer both employers and employees a smarter and more dynamic way of addressing their insurance needs.

Flex insurance does more than just offer a diverse workforce greater freedom of choice in selecting benefits. With a well structured flex plan, employees can get the benefits they want and employers can still keep a handle on costs.

But the same things that make flex plans dynamic and smart can also make them more complicated. Employers and employees alike have to grapple not only with a new benefits scheme, but a whole new vocabulary. The results can be bewildering. Why use “flex credits” instead of dollars? Which level of coverage is best? What does tax efficiency mean, and how can one achieve it?

That’s why the right communications strategy is crucial to making a flex plan work. Employers have to make sure employees aren’t baffled or overwhelmed by the choices offered to them.

What counts is understanding what flex is and how it works.

What is a flexible benefits plan?

A flexible benefits plan is just what it says it is: a plan that lets employees choose the benefits and levels of coverage they want. But different flex plans offer different degrees of flexibility: some just allow employees broader benefits choices, while others actually allow employees to choose the way their employer’s money will be spent on benefits.

The advantages of flex plans

Flex plans offer a number of advantages to both employees and employers.

For employees:

• Flexible benefits allow employees to “customize” their benefits plan to better suit their individual or family needs.
• Employees can drop coverage they don’t need and bolster the coverage they do.

For employers:

• Employers can better contain costs over the long term, because they can better budget and control their benefit expenditures.
• For employers and employees:
• Flex plans also exploit tax efficiencies unavailable in traditional plans to the benefit of both employer and employee.

There are a number of reasons that employees and employers may want to consider flex insurance plans. Because flex plans make the most of resources, they are equally useful in a number of different situations:

• A company seeking to expand its benefits package with new money.
• A company shifting from a traditional to a flex plan can rearrange its current spending and introduce new benefits at no extra cost.
• If the current plan is richer than employees need, they can cut back to a core plus credits approach. Core plus credits can also be used to cut back on costs if the benefits package costs too much for the company to run, and can also be used to soften the blow in times of fiscal restraint.

Flexible Credits

For convenience the employer’s funds used to contribute to a flex plan are called flexible credits. They are usually worth a dollar. Flexible credits give more bang for the buck when it comes to paying for coverage.

When employees buy their coverage through payroll deductions, which come off their paycheque after tax has already been paid, they may have to earn $150 in order to buy $100 of benefits.

Flexible credits are different. They are not taxed until after they are spent, and the way they’re taxed depends on how the employee spends them. The bottom line is that an employee can purchase $100 of coverage with $100 worth of flex credits, which they can’t do with payroll deductions.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

We all need to maintain the health of our teeth and gums.  Dental care coverage will do just that. Examples of coverage are listed below.

Basic Coverage

Diagnostic Services

• Examinations
• X-rays

Preventative Services (prevent dental disease)

• Cleanings, Fluoride

Restoration Services (treatment of dental cavities)

• Fillings, Metal or Plastic Restorations

Periodontal Services (services required to treat the soft tissue and bone that support the teeth)

Endodontic Services

• Root Canals

Denture Repair Services

• Repair Broken Dentures, Rebase and Realign Dentures

Major Coverage

Crowns, Bridges, Dentures

Orthodontic Coverage

Exams, X-rays, Diagnostic

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Employees and their household members may use EAPs.  To help manage issues that could adversely impact their work and personal lives.  EAP counselors typically provide assessment, support, and if needed, referrals to additional resources. These programs are becoming increasingly more common in today’s work sites.  The issues for which EAPs provide support vary, but examples include

• substance abuse
• safe working environment
• emotional distress
• major life events, including births, accidents and deaths
• health care concerns
• financial or legal concerns
• family/personal relationship issues
• work relationship issues
• concerns about aging parents

Confidentiality is maintained in accordance with privacy laws and professional ethical standards. Employers do not know who is using their employee assistance programs; unless there are extenuating circumstances and the proper release forms have been signed. In some circumstances, an employee may be advised by management to seek EAP assistance due to job performance or behavioural problems. The goal of these supervisory referrals is to help the employee retain their job and get assistance for any problems or issues that may be impacting their performance.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Over the years, the pace of our lives has increased at a rapid rate. All employees, from executives to support staff, are faced with hectic lifestyles and plagued by constant deadlines and frequent travel. This has meant that employees have to constantly juggle their private lives around their busy work schedules.

The challenge for all companies today no matter what their size, is to assist employees in finding a balance in their work/life pressures. Firms are no longer rated solely on the basis of assets, profit or turnover, but also on how they treat their employees and what they provide to enhance the work environment.

To provide tools for employers to recruit, retain and retire high quality employees, while offering the lifestyle choices in demand in today’s workplace. The Small Business Financial Advisors provides the following benefit options for your company:

• Extended Health Care
• Dental care
• Critical Illness
• Long term disability and Short term disability
• Employee and dependent life insurance
• Accidental death and dismemberment

Alternative Benefit Plans

• Flex Plans
• Administrative Services Only Plans

Other Programs

• Employee Assistance Program
• Private Health Services Plans (Cost Plus)
• Funding Buy/Sell Agreements
• Key Person Insurance
• Group RSP/Pension
• Individual Pension Plan
• Business Continuation

How we work with you


The Employee Benefits Division is made up of experienced professional employee benefits specialists and service personnel dedicated to helping your firm get the most of every dollar directed to this form of compensation. We assist businesses to become employers of choice by implementing innovative compensation plans for their employees, utilizing cutting edge cost containment strategies and proven tax effective structures for effective benefit and compensation delivery.

The Need

In today’s modern competitive employment climate, employers are looking for innovative ways to attract and retain and retire the best people available to them and their firm. This has been proven again and again to not only increase the bottom line, but to also improve the environment within which to work.

The Solution

Successful businesses look to an Employee Benefits Specialist to assist them in the application of solutions to the problems of recruiting, retaining and retiring high quality employees. Employee Benefits are an effective way of compensating employees. These products and services add value to the employee’s situation, and do not usually increase their tax positions.

How Does It Work?

Employee health and dental benefits can be broken down into two major pricing models. Pooled benefits, and Experience Rated benefits.

Pooled benefits are characterized by all premiums being deposited into a general fund from which claims are paid for many different employers plans. These benefits usually are made up of Life Insurance, Accidental Death & Dismemberment, Dependent Life Insurance, Long Term Disability, and in some cases Short Term Disability.

Experience Rated benefits are different. These extended health and dental claims are essentially, only financed on behalf of the employer by the insurer.

The insurer and employer agree on a target of claims vs. premiums for the administrative service of adjudicating and paying of claims. This is a “Target Loss Ratio” or cost charged to the employers plan by the insurer to finance these claims on behalf of the employer and employee. If a plan allows for 70% of all dental premiums to be paid out in the form of claims, the plan has a 70% Target Loss Ratio, giving a total cost of 30% (or $0.30 per dollar) of dental premium charged.  These charges include administrative costs, profit for the insurance company and commissions.

Our Focus

To assist business owners in the recruitment , retention, and retiring of high quality employees, using tax effective compensation to deliver the most value to the employee, and business owner alike. We strive to provide the most effective benefit plans utilizing innovative plan designs, and tax effective strategies for benefit delivery. Through extended health and dental plans and pension type benefits, these goals can be realized.

Your Next Step

Your next step is to meet with one of our specialists, and discuss how we may be able to help you. We have assisted many corporations, some in very similar situations to your own. You can be the judge of our value by your reaction to the ideas that we bring to you that have helped other successful organizations.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Extended health care is a benefit you can turn to in times of sickness and injury.  This benefit will provide coverage above and beyond what is offered by your provincial medical plan.

Examples of coverage are listed below.

• Prescription Drugs
• Convalescence/home services
• Ambulance services
• Semi-private hospital room
• Private duty nursing
• Appliances and supplies
• wheelchair, oxygen, casts/splints/crutches
• orthopaedic
• diabetic supplies
• Accidental Dental
• Paramedical services
• chiropractic
• massage therapist
• naturopath
• osteopath
• physiotherapy
• podiatrist/chiropodist
• psych
• acupuncture
• speech therapist
• Vision care
• eye exam
• glasses, contacts
• laser eye surgery
• Travel Insurance (out-of-province)

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

Extended health care is a benefit you can turn to in times of sickness and injury.  This benefit will provide coverage above and beyond what is offered by your provincial medical plan.

Examples of coverage are listed below.

• Prescription Drugs
• Convalescence/home services
• Ambulance services
• Semi-private hospital room
• Private duty nursing
• Appliances and supplies
• wheelchair, oxygen, casts/splints/crutches
• orthopaedic
• diabetic supplies
• Accidental Dental
• Paramedical services
• chiropractic
• massage therapist
• naturopath
• osteopath
• physiotherapy
• podiatrist/chiropodist
• psych
• acupuncture
• speech therapist
• Vision care
• eye exam
• glasses, contacts
• laser eye surgery
• Travel Insurance (out-of-province)

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

The PHSP or the Cost Plus Program is an inexpensive way for incorporated employers to provide health and dental services for themselves, their employees and dependents. Through Equinox Insurance Services, the cost of these services are 100% tax deductible to the corporation or incorporated individuals, and are provided tax free to employees under the Plan. As there are no premiums, you never pay for coverage you do not want or use – you simply pay as you go.
This cost-effective program can be used as a stand-alone program, or in conjunction with traditional group plans, as it will pay for eligible health and wellness expenses not covered under existing employee benefit plans.


How it Works


The insured pays for the healthcare expenses, and then submits these receipts with the Claim Form to the employer. The employer submits a cheque covering the cost of the expenses to Equinox Insurance Services (the plan administrator), plus a 10% Service Fee, plus GST on the Service Fee. Both the cost of the expenses and the Service Fee are tax deductible. Equinox Insurance Services then provides the insured with a tax-free reimbursement of the expenses incurred.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca

When you unable to work for an extended length of time due to a disability, you lose the ability to earn an income.  This will greatly impact your ability to provide for yourself and your loved ones. Meanwhile, your living expenses continue-in fact, they’re likely to increase for a number of reasons. You could need help around the house or have higher medical expenses, for example. That’s where disability income insurance (STD and LTD) comes in. This protection is designed to help you maintain your standard of living when you cannot work.   Disability insurance provides you with income to cover your living costs and supplement your income until you can go back to work.

Disability income insurance is needed by just about everyone who earns a living. Surprisingly, single people often need it more than married couples because they don’t have a spouse’s income to fall back on if they are injured or become too sick to work. On the other hand, most married people have a hard time imagining what it would be like to live on one salary when they barely get by on two. And unfortunately, disability strikes more often than you may think.

A Long Term Disability can be very expensive.  For example: If a 40 year old person with a salary of $75,000/yr becomes totally disabled, the disability claim can result in a benefit of well over $1,000,000 in benefits paid to that individual.

For more information please contact us at 403.457.6221 or email info@smallbusinessfinancial.ca