Health & Dental insurance
What does my government plan cover?
- Every province and territory have a different health plan. However, the following are usually not covered by government health insurance plans:
- Prescription drugs*
- Dental check-ups and treatment
- Hospital stays
- Specialized care, including speech therapists or pathologists, physical therapists, chiropractors, and many more
- Homecare and nursing
- Medical supplies and equipment
- Emergency medical health treatment for travelers
- Personal emergency response
- Hearing aids
- Accidental death and dismemberment
- Catastrophic coverage
What should i get health insurance if I am healthy?
No one likes to think about the possibility of having serious health issues. Unfortunately, if an accident or illness were to happen to you or a member of your family, the cost of medication, treatment and other expenses could add up to a considerable amount. Even treatment for common illnesses, like medication for back pain or therapy for a sprain, can be costly. Supplemental health insurance can help cover medical costs that may not be covered by your provincial health plan.
While critical illnesses such as cancer1, stroke and heart attacks2 are the serious causes of death in Canada, there are many common illnesses such as back problems, diabetes, epilepsy or high cholesterol that may also have significant financial consequences.
I have other financial priorities ,why should i get supplemental Health insurance?
Every year, you could pay thousands of dollars in unexpected medical and dental expenses if you don’t have a health plan. You could also be especially financially vulnerable in the event you suffer a serious illness or injury. Or you could end up having to use up your savings on private care, because your government health insurance plan, unfortunately, may only offer limited coverage for home nursing care and in-home assistance.
From just dollars a day, you can have comprehensive coverage that you and your family simply shouldn’t be without. And, if you’re self-employed or are an employee of your own business, health and dental premiums may be a non-taxable benefit and a tax-deductible expense. For others, the premiums may qualify as a medical expense and create a tax credit.
Are there other types of health insurance I may need?
There are four types of health insurance to consider:
- Personal health insurance, which covers eligible medical, dental and other healthcare expenses.
- Disability insurance, which replaces part of your income if you can’t work.
- Critical illness insurance, which covers eligible expenses related to a covered critical illness.
- Long-term care insurance, which covers the cost of your care when you can’t perform two or more activities of daily living. Or, when you need ongoing supervision because your mental abilities have weakened.
Should i really have supplemental health insurance when i ‘d only make a few claim a year?
Although the dental, drug and vision components of a health plan are typically the most used benefits, the long-term value lies in the comfort of knowing that you have supplemental health insurance that may help beyond what the government health system provides.
Do the Dental plans cover wisdom teeth removal?
Wisdom teeth removal falls under oral surgery (extensive services). Procedures related to oral surgery require x-rays and a treatment plan to be submitted to Manulife for assessment by your dentist before any work or treatment begins. You will then be advised of the eligibility of the treatment.
Do I have to answer a medical questionnaire?
Five of the eight plans require no medical questionnaire at the time of application. These plans include the Base Health and Dental Plan and the four Dental (with basic health) Plans. When you apply, your acceptance is guaranteed provided that you meet the eligibility criteria.
How do i make a health and dental insurance claim?
First, check to see if your provider has already submitted your claim. Often, you don’t have to submit a claim because many hospitals, pharmacies and dentists can submit your claim directly to us. There’s no online form or paperwork for you, and you only pay the amount your plan doesn’t cover.
If your provider hasn’t already submitted your claim, you can submit your claim on paper by mail.
How long do i have to make a health and dental insurance claim?
You have 12 months from the date you were charged for a health and dental service to submit your claim for reimbursement.
How quickly will my health and dental insurance claim be paid?
If your claim form is complete and accurate, you will generally receive payment within six business days. When information is missing, we may have to return the claim form to you. This delays processing and payment.
How do i submit my health and dental claims?
You can claim on paper by mail:
- Specify the currency if your claim is for services outside Canada
- Include original receipts and applicable supporting documentation
- Make sure you’ve signed your claim form
- Use the extended health claim form for all covered expenses except dental expenses
- Use the dental benefit claim form – must be completed by your dentist or dental specialist
How do I start homecare and nursing services?
if you are qualify for claim, Call to speak to a customer service professional. You must complete nursing approval forms before starting homecare and nursing services.
what information do my prescription drug receipts have to show?
Prescription drug receipts must be original receipts (not statements) and show:
- Name of drug
- Drug identification number (DIN)
- Date of service
- Prescription number
- Prescription strength and quantity
- Drug cost
- Dispensing fee (if applicable)
All other receipts must be original receipts on the printed letterhead of the person or company providing the service and show:
- Name of patient
- Date(s) of service
- Description of service
- Cost of each service
when do i need an estimate for other health and dental insurance services?
Get an estimate and send it to us before any major dental work. Ask your dentist to outline the proposed treatment plan and to include x-rays if available. We will let you know how much we will pay.
when do i need an estimate for other health and dental insurance services?
Dental claims?
How do I start homecare and nursing services?
What information do my prescription drug receipts have to show?
Patients will need to complete the Medical Marijuana Prior Authorization form with their doctor and submit it to Manulife for assessment. Please follow the instructions on the form carefully. If approved, the patient will receive a welcome call from the Shoppers Drug Mart Cannabis Care Centre. The pharmacist will review the patient’s needs, advising them on the different strains of medical marijuana and the different ways to take it. Based on this support, patients can choose the treatment that best meets their needs and is covered under their plan.
How is Manulife’s medical marijuana program unique?
Our program is the only one in the industry to offer:
- member referral to specially trained pharmacists at the Shoppers Drug Mart Cannabis Care Centre
- coverage guidance based on the approved formulary
- help with the coordination of medical marijuana distribution
- case management, which includes patient oversight and outreach for follow-up
- a support line that is available for continuous guidance throughout the process
What is travel insurance?
Is medical travel insurance necessary when traveling within Canada?
Government health insurance plans may have limits on the reimbursement of the emergency medical expenses incurred while in another province or territory. For example, air and ground ambulance costs, emergency dental treatment and prescription drugs might not be covered outside your province or territory of residence. For maximum protection, you can purchase additional medical coverage even while travelling within Canada.
Travel insurance helps protect you from unexpected costs while travelling. This can include emergency medical expenses, trip cancellation and trip interruption costs, delayed or lost baggage, and flight and travel accidents.
When is the best time to purchase travel insurance?
Many insurance plans may be purchased right up until the date of departure, however, if you are considering coverage for trip cancellation it is recommended to purchase insurance on the day your trip is booked.
What does travel insurance cover?
Travel insurance can include coverage for hospital and physician services, paramedical services, ambulance and emergency medical return home, and more. In addition, travel insurance can also help with unexpected costs from delayed or lost baggage, trip cancellation and trip interruption, and flight and travel accidents.
Does my provincial health insurance coverage travel abroad?
Provincial or territorial government health insurance plans may pay only a small portion of medical expenses incurred abroad. They might not pay for ambulance services, prescription drugs, fees charged by private hospitals or facilities or emergency dental treatment. In addition, many hospitals abroad may require immediate cash payment or proof of insurance, which our assistance center would help coordinate.
What happens if I’ve booked a trip and one of my family members becomes ill or passes away?
Trip Cancellation and Interruption insurance benefits may be payable in the event that any member of your immediate family develops a medical condition unexpectedly or passes away and you can no longer travel or you need to end your trip early.
Do you need travel insurance while travelling to the USA from Canada?
Although we share a border with the States, your provincial or territorial health plan may not cover your medical fees or may only cover a small portion when travelling outside of Canada. Whether you are planning a shorter trip or a longer stay, medical costs in the US can be very expensive and can add up quickly depending on the medical care required.
Do your travel insurance plans cover personal belongings?
All Inclusive plan contains Baggage Loss, Damage & Delay insurance. There are benefits available in the event that any item or set of items contained in your baggage is lost or damaged. Conditions, limitations, exclusions apply, please see the policy for full details.
Do your travel insurance plans cover theft of baggage?
All Inclusive plan contains Baggage Loss, Damage & Delay insurance. There are benefits available in the event of baggage theft or lost/stolen travel documentation (passport, driver’s license, visa). It is important in these instances to be prudent and report any losses to the authorities so full documentation of the situation is recorded. Conditions, limitations, exclusions apply, please see the policy for full details.
Do your travel insurance plans cover flight changes?
Any plan containing Trip Cancellation and Interruption insurance contains benefits for misconnection and travel disruptions resulting from common carrier schedule changes.
Do your travel insurance plans cover the cost if I need to cancel my accommodation?
If your hotel or accommodation needs to be cancelled due to a covered event, Trip Cancellation and Interruption insurance may pay up to the covered amount for the prepaid unused portion, that is non-refundable and non-transferable to another travel date.
Is travel insurance necessary for Europe?
When you travel to Europe, your government health insurance plan may only provide limited coverage, which can leave you with unexpected out-of-pocket expenses. Purchasing travel insurance can help ensure you have proper coverage in case of a medical emergency, trip cancellation or interruption.
Can I purchase travel insurance for an unaccompanied minor?
Travel insurance can be purchased for unaccompanied minors, given they meet the standard eligibility requirements. Please see the policy for full details.
How far in advance before my trip can I buy your travel insurance plans?
Any plan containing emergency medical insurance may be purchased 180 days prior to your departure date. Plans containing any other type of insurance may be purchased up to 365 days prior to departure.
Can I purchase your travel insurance plans after booking my trip?
Yes, most plans may be purchased up to and including the date of departure. For Trip Cancellation and Interruption protection, we recommend maximizing your length of coverage and purchasing as soon as possible, in the event you need to cancel your trip.
What is COVID-19 travel insurance?
COVID-19 travel insurance provides coverage in the event you experience unexpected costs in relation to the Coronavirus.
What does the COVID-19 Pandemic Travel Insurance plan cover?
The COVID-19 Pandemic Travel Insurance plan covers COVID-19 related emergency medical expenses, non COVID-19 related emergency medical benefits, and trip interruption coverage in the event you need to self-isolate or quarantine during your trip.
Visitors to Canada
What if I change my mind after I apply?
10-Day Free Look – If you notify us within 10 days of your purchase date, as indicated on your confirmation, that you are not completely satisfied with your policy, we will provide a full refund if you have not already departed on your trip and there is no claim in progress. Refunds are only available when Manulife receives your request for a refund before your departure date.
Critical illness Insurance
Who should purchase the critical Illness insurance plan?
The Critical Illness Insurance plan was designed for healthy individuals between the ages of 18 and 65 who want a basic amount of affordable critical illness coverage that can be obtained quickly, easily and without completing a medical questionnaire.
What are the definitions of the covered conditions?
How do you define “signs and/or symptoms” of critical illness?
How do you define “signs and/or symptoms” of heart disease?
How do you define “medical consultations” related to critical illness?
How do you define “abnormal tests” related to critical illness?
Am I eligible for Critical Illness Insurance if I have a history of high blood pressure?
Am I eligible for Critical Illness Insurance if I have a history of elevated cholesterol or triglycerides?
What is meant by “signs and/or symptoms” in the Health Declaration? What’s a pre-existing condition for Critical Illness Insurance?
Does Critical Illness Insurance cover all cancers?
I quit smoking but still use a patch, can I apply for non-smoker rates?
What happens if I change my mind after completing the application?
Does this Critical Illness coverage offer a “return of premium”?
We will pay a return of premium on the death benefit if you die while your policy is in force, and have not received, or are not eligible for, a Critical Illness Benefit payment, and provided that we receive the following at our office:
- A written request for the return of premium on the death benefit;
- proof, satisfactory to us, of your cause of death; and
- proof, satisfactory to us, of your birth date.
We may require additional medical information which must be provided, at no cost to us. We reserve the right to make the final decision on whether the above conditions have been met.
What are the definitions of the covered conditions?
Life-threatening cancer: A tumor characterized by the uncontrolled growth and spread of malignant cells and the invasion of tissue as confirmed by histological examination of tissue samples.
Heart attack (myocardial infarction): The death of a portion of the heart muscle due to atherosclerotic heart disease. The diagnosis must be based on all of the following criteria occurring at the same time:
- New episode of typical chest pain or equivalent symptoms; and resulting from the blockage of one or more coronary arteries; and
- New electrocardiographic changes indicative of myocardial infarction; and
- Biochemical evidence of myocardial necrosis including elevated cardiac enzymes and/or troponin.
Stroke: A cerebrovascular incident causing infarction of your brain tissue, due to intracranial hemorrhage, thrombosis or embolism, producing a new measurable permanent clinical neurological deficit persisting for at least thirty (30) days following the occurrence of the stroke.
Coronary artery bypass surgery: You have undergone heart surgery to correct the narrowing or blockage of one or more coronary arteries with bypass grafts.
Kidney failure: End stage renal disease, due to whatever cause or causes, as a result of which you are undergoing peritoneal dialysis or hemodialysis on a regular basis or have received a transplanted human kidney.
Major organ transplant: You have received a transplant of a human heart, liver, lung or human bone marrow, due to irreversible failure of such organ.
How do you define Signs and or symptoms of critical illness?
In the Critical Illness Insurance Health Declaration, “signs and/or symptoms” means any indication that a named condition may exist – for example:
- Presence of an undiagnosed breast lump
- Chronic cough
- Blood in urine
- Unexplained weight loss
- Chest pain
- Shortness of breath
- Difficulty speaking
- Numbness
- Paralysis
- Severe headache
- Sudden onset of blurred vision
If you have had any unusual signs or symptoms that have not yet been diagnosed by a doctor or if you have been diagnosed with a condition named in the Health Declaration, you are not eligible for Critical Illness Insurance coverage.
Critical illness insurance for Business and Executive
Can my company deduct Health Priorities – Business premiums for tax
purposes?
No, it can’t. According to the Canada Revenue Agency (CRA), the critical illness premiums paid by your company are not deductible for tax purposes because they aren’t incurred to gain or produce income from a business or a property.
Can I use the EHP with an Opco or a Holdco?
The EHP concept works with either an Opco (operating company) or a Holdco (holding company). If there’s just a Holdco, it may be harder to justify the need for a critical illness insurance.
If you only own shares in an Opco or are a key employee who is not a shareholder, then the Health Priorities – Business policy will be held jointly by you and the Opco. If you own shares in a Holdco and there’s also an Opco, it’s more complicated, because you need to determine whether it’s more beneficial to own the Health Priorities – Business policy jointly with the Opco or the Holdco.
JOINT OWNERSHIP WITH OPCO JOINT OWNERSHIP WITH HOLDCO
Ready access to the critical illness and death benefits to meet the Opco’s needs identified in the Business Needs Analysis.
You will need to have a procedure in place, in case of a critical illness or death, allowing the Opco to access the critical illness and death benefits to meet its insurance needs.
When a critical illness or death benefit has been paid to the corporation, this amount will be exposed to its creditors.
In addition to the shared ownership insurance agreement, if there are more than one shareholder, you need to make sure the Health Priorities – Business benefits are used how you intended by completing a shareholder agreement.
When a critical illness or death benefit is paid to the Holdco, it should be safe from the Opco’s creditors.
Since you control the Holdco, you alone decide how the benefits to be paid will be made available to the Opco and when.
If you are a key employee who is not a shareholder, you need to review your personal critical illness and life insurance needs as the critical illness and death benefits under the EHP will be paid to the company
What happens if I can’t afford the premiums?
Can I take a “premium holiday?”
Yes! If your company’s financial situation changes, you can take a 1-year “premium holiday” any time after the 5th policy year. Once you’re ready to start paying your premiums again, you’ll have to immediately catch up on the year’s worth of premium payments you missed—interest-free.
If you are a non-shareholder key employee, you need to discuss the “premium holiday” with the company to make sure that you will be able to pay your portion of the year’s worth of premiums once the “premium holiday” has ended.
What if I decide to only partially retire?
If you decide to cut back on your hours or if you start working part-time, you should contact your Life and health insurance advisor to reassess your business insurance needs.
You’ll have 3 options:
• If the company still needs the full coverage amount, no changes have to be made to the insurance or the shared ownership agreement.
• If the company doesn’t need as much coverage, your Life and health insurance advisor can ask for it to be reduced.
The policyowners (typically you and the company’s signing authority) have to sign the change request. Decreasing the coverage will trigger a health benefit payment.
It will also reduce the critical illness and death benefits your company
may receive in the future.
The premiums you and the company have to pay will also decrease. Once you fully retire and your company no longer needs critical illness coverage, you’ll be entitled to receive the health benefit based on the new premium and the initial policy issue date. Your Life and health insurance advisor will help you terminate the coverage
Once you and the company’s signing authority have signed the appropriate form, Desjardins Insurance will send you a cheque following the processing of your request.
• If a succession is already in place in the company and you no longer play a key role, the coverage would no longer be required. At that time, with the agreement of the company’s signing authority, you can either terminate the coverage and receive your health benefit in full or transfer the ownership of the contract to you personally.
We recommend you meet with your Life and health insurance advisor to update the Business Needs Analysis (BNA). An up-to-date BNA will be useful in the event that the tax authorities decide to review your file.
What if I decide to fully retire?
The coverage is then no longer required by the company, and, with the agreement of the company’s signing authority, you can either terminate the coverage and receive your full health benefit or transfer the ownership of the contract personally.
We recommend you meet with your Life and health insurance advisor to update the Business Needs Analysis (BNA), so you have a record that the coverage is no longer needed. An up-to-date BNA will be useful in the event that the tax authorities decide to review your file.
The health benefit starts at the end of year 4, so if you decide to fully retire earlier than originally planned, you could trigger the health benefit any time after year
The health benefit amount depends on when you retire. For example, if you retire after 10 years and you had initially selected the health benefit scale returning 100% of the premiums paid after 20 years in the Term to 100, you’d receive 50% of the health benefit.
You cannot receive the health benefit before the expiration of the coverage period without tax consequences if the company still needs it.
For a key employee who is not a shareholder, the Canada Revenue Agency (CRA) might be of the view that you have received a taxable benefit by virtue of your employment upon the payment of the health benefit. Since the determination of the value of the benefit is a question of fact, you should consult an independent taxation advisor in this regard.
What if I sell or wind up my company?
Plans for your company may change. The company may be wound up or amalgamated, a corporate restructuring may be done to add an Holdo, or you may sell your shares.
In either of these cases, you should keep these things in mind:
• Your legal and taxation advisors are aware you have a Health Priorities – Business policy. Together, you need to plan what has to be done if your circumstances change.
Once you sell your shares, the new shareholders will be entitled to direct what happens to the critical illness and death benefits, which means you might no longer be able to receive any portion of those amounts.
If you stay on as a key employee, the company will most likely still need the coverage. If the company no longer needs the coverage, the health benefit can be paid out or the company can transfer their ownership interest to you.
Either way, your Life and health insurance advisor will have to fully analyze the situation. A post-issue Critical Illness Insurance Needs Analysis may have to be done to determine whether the company is impoverished.
• Your original shared ownership insurance agreement addresses these situations so that you and your company are prepared if your plans change.
What if I am a key employee who is not a shareholder? Are there any special considerations for me to be aware of when I am talking with the company about an EHP?
Yes, there are some important differences when you are a key contributor to the company’s financial well-being but are not a shareholder. The main areas are:
Since the company will be the beneficiary of the critical illness and death benefits, it’s important to make sure that your personal needs will be met if you are diagnosed with a critical illness or die prematurely.
That’s why it’s important to conduct a review of your personal critical illness and life insurance needs when considering setting up an EHP.
Your Life and health insurance advisor can complete a Personal Insurance Needs Analysis and provide you with information about solutions to meet your needs and those of your loved ones and assist you in putting your personal risk management program in place.
As an employee, you and the company will need to review your compensation to determine the most advantageous method of ensuring that you will be able to afford your portion of the premiums under the shared ownership agreement.
The two key compensation methods are an increase in your salary or a bonus, both of which can be calculated so that your after-tax income will allow you to cover your portion of the premiums for the jointly owned critical illness insurance.
When it comes time for you to receive the health benefit while you are an employee, the CRA might be of the view that you have received a taxable benefit by virtue of your employment by the company.
Since the determination of the value of the benefit is a question of fact, you should consult an independent taxation advisor in this regard.
If you leave the company altogether, including on your retirement, then the critical illness coverage will no longer be required by the company.
With the agreement of the company’s signing authority, you can either terminate the coverage and receive your full health benefit or, under the terms of your shared ownership agreement, the company will transfer its interest in the contract to you personally.
Since the health benefit starts at the end of year 4, if you cease to be an employee or fully retire earlier than originally planned, you could trigger the health benefit any time after year.
The health benefit may be reduced to reflect it being taken earlier than the original health benefit period selected when the contract was issued.
We recommend you meet with your Life and health insurance advisor to update the Business Needs Analysis (BNA), so you have a record that the coverage is no longer needed. An up-to-date BNA will be useful in the event that the tax authorities decide to review your file.
This will also be an opportunity to review your personal critical illness insurance needs to keep your risk management plan up-to-date.
If you become a shareholder in the future, you and the company should have your legal and taxation advisors do a review of how this change in your status will affect the shared ownership agreement, including the potential taxation of the health benefit.
This change in your status should trigger a review and an updating of the shared ownership agreement to reflect your new status as a shareholder.
What if an EHP doesn’t make financial sense right now? What are my options?
Once you and your Life and health insurance advisor have completed the Business Needs Analysis and determined that your company could benefit from adding critical illness insurance to its risk management plan, you could choose to acquire a corporate-owned Health Priorities critical illness policy with a Return of Premium on Death rider as a cost-effective measure.
You or a key employee could be the insured individual. The company would be the sole owner of the critical illness insurance contract, pay the premiums and be the beneficiary.
The reason that this approach makes sense is that having the Return of Premium on Death rider will allow to convert the contract into an EHP in the future as your company’s cash flow increases.
In this scenario, we recommend you meet with your Life and health insurance advisor to update the Business Needs Analysis to verify that the coverage is still required and that an EHP is appropriate.
Since converting the contract would be a change in the ownership, your legal and taxation advisors should be consulted to do a comprehensive review of your individual circumstances to ensure that the change does not result in the company being impoverished and that a shared ownership agreement is prepared and signed.
This will ensure that you have the proper paperwork to provide to the CRA if they ever review your situation.
Why does Desjardins Insurance price Health Priorities – Business the way that it does? What’s the logic?
When Desjardins Insurance designed the concept of jointly owned critical illness insurance, we introduced the Business
Needs Analysis (BNA).
This form is essential (and mandatory in Quebec province) to determine how much and for how long the critical illness insurance is needed by the company.
Our goal is to split the premium between the company and the insured shareholder or key employee, and have each party
assume their fair share based on the benefits they’re entitled to.
To ensure there’s no impoverishment for the company,
it has to pay for the critical illness and death benefits for a pre-determined coverage period according to its need.
The shareholder or key employee must pay the portion of the premium corresponding to the selected coverage beyond the
company mandated coverage duration, if applicable, in addition to the health benefit premium.
For example, we never take for granted that if the Health Priorities – Business Term to 75 product is selected, the coverage is automatically needed until the shareholder or key employee turns 75, with the shareholder or key employee only paying for the health benefit (ROP).
Here’s how the premium would be split for a 45-year-old shareholder or key employee and a company that needs $1 million in coverage until the shareholder or key employee turns 65
For the Health Priorities – Business Term to 75 with a health benefit that’s equal to all the premiums paid after 15 years, the total premium is $28,100.
The premium is split, with the company paying $10,550 and the shareholder or key employee paying $17,550.
In that case, since the company needs the coverage until the shareholder or key employee turns 65, the premium that will be paid by the company is exactly the same as what it would be for the Health Priorities – Term to 65 with ROPD.
In other words, if the company had purchased a critical illness policy with the same benefits, independently from the shareholder or key employee, the company would disburse the same amount.
Splitting the costs between the parties based on how long the company needs the coverage minimizes the risk of inadvertently impoverishing the company when critical illness insurance is no longer needed, and payment of the health benefit is triggered.
For a key employee who is not a shareholder, the CRA might be of the view that you have received a taxable benefit by virtue of your employment upon the payment of the health benefit.
Since the determination of the value of the benefit is a question of fact, you should consult an independent taxation advisor in this regard.
Why are EHP beneficiary designations structured the way they are?
At Desjardins Insurance, we’ve structured the contract so that a beneficiary can be designated to receive the ROP option.
Over time, we’ve maintained the beneficiary designation feature for the shared ownership concept, following the regular review of the product made from a tax and legal perspective.
On the critical illness insurance application, a beneficiary can be designated for each of the following benefits: critical illness, death and health.
What are the benefits of the Business Needs Analysis (BNA)?
The BNA helps Life and health insurance advisors establish how much coverage a company needs if the insured shareholder or key employee is diagnosed with a critical illness. It’s also used to determine how long the company needs the coverage.
The BNA helps show Desjardins Insurance’s underwriters that you and the client have worked out a realistic amount for the insurance need.
Completing the BNA allows clients to systematically quantify—often for the first time—how much their company is worth.
It also helps them recognize and acknowledge the extent of the insurance need to adequately protect their company against a critical illness. In the case of a key employee who is not a shareholder, the BNA can show clients what the financial costs of replacing that employee could be and assigns a concrete figure to those costs.
This may be helpful if the shared ownership insurance agreement is questioned down the road by other advisors or, more importantly, by tax authorities.
How important is the shared ownership insurance agreement?
The shared ownership insurance agreement is an essential part of the paperwork that makes the entire EHP concept work so well. Desjardins Insurance provides a “bare bones” sample document for reference and discussion purposes only.
The sample document isn’t a professional advice. Desjardins Insurance doesn’t assume any liability for its potential use.
Clients need to ask a qualified legal advisor to draft a shared ownership agreement for them. These professionals will be able to address the client’s future planning considerations in the agreement.