Shared Ownership refers to a concept where more than one party owns an interest in an insurance policy. The most common of these arrangements is where the corporation is the owner and beneficiary of a life insurance benefit and the shareholder or key employee owns the fund value of the policy. The fund value component has a separate beneficiary usually a spouse and/or children.
There has been growing interest in applying this strategy to a Critical Illness policy. Although the CI policy does not have cash value, there is usually an option to have a Return of premium (ROP) for different situations.
Under this arrangement the company is protected against loss but should no claim occur, the shareholder/employee can receive a financial benefit.
Consider this*
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One in three Canadians will develop life threatening cancer;
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Half of all heart attack victims are under the age of 65;
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Each year 50,000 Canadians suffer a stroke with 75% of all victims being left with a disability.
*Source: RBC
Call me if you would like to explore whether this strategy will benefit you and your company.
