Taking Care of Business

What’s important to my business?

Partnership/Shareholder Agreements

Buy/Sell At Death Of Partner/Shareholder

Funding a Buy/Sell agreement with a Life Insurance Plans has long been the preferred method of businesses and corporations. Simply put, the business or corporation requires immediate liquidity to buy out a partner or shareholders interest at death. These arrangements can be structured many ways depending on the individual situation; Professional Assistance should always be sought prior to implementation.

Keyman Considerations

The most valuable resource that a business has is its’ people. The financial loss to a business at the death or disability of a key employee/owner can be harmful if not devastating to its continued success. Money is needed to provide a replacement for this individual or for the financial loss, which will be suffered by the business. The use of Life and Disability Plans provide the solution.


Loans & Creditor Protection – Should a business owner or shareholder die or become disabled it is vital to make provisions for debts of the business or corporation. Often the loss of a key person will dramatically affect the continued profitability, as well as, the ability to obtain or maintain credit. Banks, lending institutions and suppliers might be hesitant to continuing business with the company. The use of Life and Disability Insurance Plans to avoid this occurrence is advisable.

Succession Planning

Planning For A Successor

Whether a successor is a family member, partner/shareholder, or key employee proper planning is vital to the continued success of your business now and in the future. Early planning avoids the added strain caused by re-financing to buy out a retiring owner/shareholder. Universal and Whole Life plans are ideal financial tools for this application due to there ability to shelter funds on a tax-deferred basis.


Corporate Pension Augmentation – The advantage of tax-sheltered growth within a Universal or Whole Life plan allows corporations to structure pension augmentation for executives.


By over funding the insurance requirements the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.


Leveraging Strategies – Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages to these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit without having to pay personal income tax. In corporate arrangements the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Fair Vs Equal

In succession planning the question of Fair vs. Equal comes up in a large number of situations. If an owner/shareholder leaves a business asset or a company to one child; what is a fair treatment for a non-participating children? Death benefits from a life insurance plan can be used to provide a fair equalization solution. The amounts can be selected by the owner/shareholder, which would alleviate the added pressure, complications and financial burden to his or her successor.

Loans / Creditor Protection

Loans / Creditor Protection

Should a business owner or shareholder die or become disabled it is vital to make provisions for debts of the business or corporation. Often the loss of a key person will dramatically effect the continued profitability, as well as, the ability to obtain or maintain credit. Banks, lending institutions, and suppliers might be hesitant to continuing business with the company. The use of Life and Disability Insurance Plans to avoid this occurrence is advisable.

Business Taxation Strategies

Managing Tax Liabilities

Capital gains tax in Canada not only applies to shareholders while living but also at their death. Growth of business assets above the adjusted cost base becomes taxable at the capital gains rate. Over time these gains can become a significant hidden tax bill. Life Insurance plans can be designed to provide a solution.


Professional Assistance should be sought in determining the projected capital gains and the possible tax bill.

Trapped Corporate Surplus

Many privately held corporations in Canada accumulate income, which becomes trapped in the corporation. If this surplus is invested and gains are obtained they become taxable at a very high rate.


Shareholders and professionals can use Universal Life or Whole Life Insurance to avoid this annual taxation and provide liquidity for creditors and tax liabilities through the insurance proceeds. Cash values can accrue tax-deferred in a wide array of investment options. Pension augmentation or leveraging strategies can be implemented in the future to benefit the shareholders or professionals.

Corporate Pension Augmentation – The advantage of tax-sheltered growth within a Universal or Whole Life plan allows corporations to structure pension augmentation for executives.


By over funding the insurance requirements the cash value will accrue tax-deferred until retirement, at which time withdrawals can be made or leveraging can be implemented.


Leveraging Strategies – Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages of these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit without having to pay personal income tax. In corporate arrangements, the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax-deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Executive Compensation / Pension Augmentation

Income Sheltering

Universal Life has become a vital tool in tax planning strategies. In addition to providing liquidity with tax-free death benefits, Universal Life also offers tax-deferred accumulation with a wide array of investment options. Preferred tax treatment and flexibility allow for income sheltering and retirement augmentation.

Leveraging Concepts

Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages to these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit with out having to pay personal income tax. In corporate arrangements the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Retirement Settlements

Income Sheltering – Universal Life has become a vital tool in tax planning strategies. In addition to providing liquidity with tax-free death benefits, Universal Life also offers tax-deferred accumulation with a wide array of investment options. Preferred tax treatment and flexibility allow for income sheltering and retirement augmentation.


Leveraging Concepts – Cash Values from a Universal or Whole Life plan can be assigned to a bank, which in turn provides a line of credit to use for retirement income.


The advantages to these arrangements are that cash values within the plans continue to accrue without taxation. As well, individuals can access their line of credit with out having to pay personal income tax. In corporate arrangements the income is taxable to the retired shareholder. However in both cases, if structured properly the interest paid on the line of credit may be tax deductible. Professional Assistance should always be sought prior to implementing any of these arrangements.

Employee Group Benefit Plans

“Quality Benefits Do Not Have To Be Expensive”

M.E.F. Services Ltd. offers employers the maximum return on the dollars invested in the employee benefit program by:
  • providing benefits tailored to fit the needs of the employer and employees.
  • integrating benefits with government programs where appropriate.
  • providing benefits which are tax effective.
  • communicating the value of the benefit program to employees (meetings, booklets).
  • providing fast and efficient service.
Why group benefits make good sense for your business:

“Quality Benefits Do Not Have To Be Expensive”

For the Small Business – We deal with companies who specialize in providing benefits to this market. From one employee up, we can deliver an affordable package with all the quality you expect.

Larger Businesses – Will not have to wonder if they have the best package for them. We tender your plan to numerous Insurance Companies and provide an analysis and recommendations back to you.

Cost Containment…need not be a problem. Use our experience to assist you in designing a package that suits your business and employee needs. We have built our reputation by providing the utmost in service to our clientele. Our clients expect the best and so should you!

Benefits that are available:
  • Life Insurance
  • Dependent Life
  • Accidental Life
  • Dismemberment
  • Short & Long Term Disability
  • Critical Illness
  • Extended Health
  • Out-of-Country Health
  • Dental & Vision Coverage
  • Employee Retirement Savings Plans
  • Executive Plans designed just for you!