Group Retirement Plans
We help design a retirement savings program to meet the needs of your organization. You can select different plan options such as:
- Group Registered Retirement Savings Plan (RRSP)
- Deferred Profit Sharing Plan (DPSP)
- Tax-Free Savings Account (TFSA)
- Defined Contribution Pension Plan (DCPP)
Our service is to include a wide variety of investment options and tools for the employees of the organization. Our strategy focuses on engaging the participants by using a variety of communication approaches to support and guide the value of a Group Retirement Savings solution.
HR Software Integration
Payroll integrated with health benefits leverages leading technology to streamline processes, mitigate accounting errors, ensure CRA compliance, and reduce costs associated with administration and production.
- new businesses, entrepreneurs or start-ups
- businesses struggling with benefits administration
- businesses with high-turnover
You have worked long and hard building and growing your business and the results are showing. But, what would happen if you couldn’t go to work tomorrow? Or ever?
You may survive but what about your finances and the business you created?
When two or more people are in business together there is often a buy/sell agreement in place. The agreement usually stipulates that in the event that one shareholder dies the others have to buy out their shares immediately. How does a company come up with that money quickly and efficiently? Do they have the liquidity? Can they get a loan from a bank? Insurance is an effective and cost efficient way to provide the needed funds in these types of scenarios.
What happens if the person who is driving the business suddenly dies, gets ill or becomes disabled? Will the company be able to survive the short term until it can find a replacement? Will they have the necessary funds to attract a replacement? Once again insurance is an invaluable tool to provide this funding at a much cheaper cost.
Tax Sheltering Profits
Clients with excess capital can benefit from sheltering this money inside of a permanent life insurance policy. The investment growth of this money is sheltered from tax and is eventually paid out to the client’s beneficiaries of choice tax-free. This can provide a significant gain for the clients heirs compared to traditional investment vehicles. In a corporate scenario the advantage is magnified as the life insurance proceeds (including investment dollars) can often be paid out of the corporation tax-free. This saves the heirs almost 40% in tax compared to other scenarios.
Health & Travel Insurance
Canadians love to travel, both out of the province and out of the country. Sometimes, accidents and illness can put a glitch in those plans.
As Canadians, we have access to world class healthcare and our provincial health plan covers many of the expenses associated with accessing that care. Unfortunately, provincial healthcare coverage covers only a small portion of medical expenses that may be incurred while travelling outside of Canada. Coverage outside of your home province may be subject to limits as well. Travel Health insurance purchased before you leave is there to help avoid unexpected medical expenses while away from home.
Government of Canada – Say Yes to Travel Insurance: http://travel.gc.ca/travelling/publications/insurance-factsheet
Provincial health insurance is good but does not necessarily cover expenses such as prescriptions, vision services and paramedical expenses. Private health insurance plans can help cover gaps in your government health insurance plan and to offset increasing medical costs.
You’ve planned for the future, created a plan and are following it. That plan likely does not include an unexpected death. Life insurance is an effective solution that helps navigate this unexpected situation, pay off debts, estate expenses and provide for the same security you had always envisioned. The purchase of life insurance is an important decision for both you and your family.
Some types of insurance.
Term insurance provides protection for a specified period of time and usually have expiry dates of age 75 or 80. There are many terms available such as 5, 10, 20 years or to a specified age such as 80 and “term” refers to the number of years the premium remains level. With the exception of term-age policies, the policy may renew at the end of each term and, although rates are generally low in the early years, premiums increase, sometimes substantially, at each term renewal. If you die while the policy is in force, the company will pay the face amount of the policy to your beneficiary. If you live beyond the expiry of the policy, no benefit is payable.
Permanent insurance is designed to provide coverage for your entire lifetime. The cost of insurance can be guaranteed level at issue and never increase. Depending on the type of policy, coverage may increase and there may a cash value associated with the coverage. For some polices, it is possible to deposit additional funds in order to take advantage of (tax-sheltered) growth within the policy. Permanent coverage affords estate and tax planning opportunities.
Types of permanent include Whole Life and Term to 100 and Universal Life.
What’s the risk?
Life has risks. Unexpected events such as illness, injury or even a death can derail the best laid plans.
For a male age 45, here are the risks:
- 31 % Disability before age 65
- 24 % Critical Illness before age 65
- 5 % Dying before age 65
- 46 % Probability of dying, becoming critically ill, or disabled before age 65 *
- The combined risk for a male age 45 and female age 45 increases to 68%*.
What would happen if you were unable to work due to a serious illness or injury? Would you or your family have the income that is needed to maintain your lifestyle? The risk of disability before age 65 can range between 30-56% depending on if you are single or married. With two people in a family unit, the risk that one person will become disabled before age 65 increases dramatically.
An individual disability policy can help protect against a loss of income in this event. If you are unable to work for longer than 90 days due to a significant illness or injury, individual disability insurance policies pay a tax-free monthly benefit that replaces your income until you get better or age 65 whichever is less.
If you are an employee, you likely feel that your group benefits provide you with the coverage you need. In our experience, most group plans have caps that limit the amount of income that will be covered. In this case, we add what is called top-up coverage to maximize your benefits during your period of disability.
If you are self-employed, you may not have any coverage or you may have coverage that you took out when you first started your business which no longer accurately reflects your current income situation. We, at Producers Group, Ltd, can assess your individual situation and make recommendations to adequately protect you.
Long Term Care (LTC) can have significant costs associated with it. These costs can seriously impact a client’s retirement and the value of their estate. Long Term Care is broken down into three broad categories: Home Care, Retirement Homes and Nursing Homes. There are some government subsidies available for this type of care but there are usually waiting lists and limitations on the type of care provided (ward room versus semi private or private).
If a client wants to remain independent for as long as possible in their own home, then Home Care is the choice they usually make. In the client’s home, they may require only a little bit of help with things like meal prep, cleaning, etc. all the way up to full time nursing care. The costs for this run between $32 and$100 per hour.