Corporate Actuarial Insurance Review (CAIR)
If your Shareholders Agreement has flaws, how would you know? You won't see visible symptoms like a fever or rash. If something is wrong, you may not be able to make changes. What's written takes precedence over what's intended.
A well-written Shareholders Agreement has provisions for:
- buyout on disability
- buyout on retirement
- buyout on death
Insurance is often used for the funding. There are usually changes needed, ranging from minor to major.
What Goes Wrong
We're in a complex world. The insurance provisions require careful review to ensure they are still optimal and consistent with evolving best practices.
Get a Corporate Actuarial Insurance Review (CAIR).
This includes two elements:
- a review of the provisions in the Shareholders Agreement that pertain to insurance by a lawyer
- a review of the corporately-owned insurance policies by an actuary
Shareholders have families and the Family Actuarial Insurance Review (FAIR) addresses their additional issues. The charge for this optional service may be included in the price for a family-owned business.
The process has three steps and takes two meetings.
1. What do you want? [Meeting 1]
What are your goals? These can be immediate, short term or long term (or a combination). You decide. Set aside 75 minutes for the discussions, which can take place at your office or other location of your choosing. You'll talk about your situation and concerns. You'll also be asked basic questions about
- your age and health
- your spouse's age and health
- your children
- your current life and health insurance
Relax. This is not a financial plan. You're not treated as a puzzle. That approach requires the collection of many pieces of your personal information and a preconceived image of the final result. Who wants to share such detail with a near-stranger?
The Actuarial Insurance Review treats you as a mystery. Only a few crucial clues are needed. This is much less intrusive and (almost) enjoyable. The skill comes from asking the right questions.
2. Where are you now?
You bring copies of your current life insurance and health insurance policies. You can also bring legal documents like Wills and other information you feel is relevant. This shows your current situation.
Afterwards, the Taxevity team compares what you have with what you need to achieve your goals. If the analysis uncovers gaps or shortcomings, proposals are prepared.
3. Your Next Steps [Meeting 2]
In 2-3 weeks, you have a second meeting to review the findings. Set aside 75 minutes. You'll get a high level summary tailored to your situation. You'll get back any documents you provided in Step 2.
You'll see different ways to provide for your insurance needs, with pros and cons for each. You'll also receive recommendations to consider. This is your chance to ask lots of questions and decide what to do next. This is also when you pay for the review.
You can fill the prescription with your current advisor or use Taxevity as your pharmacy. Your choice.
By law, insurance products sell at list price to protect you from the nine sources of advisor misconduct. Since you'll pay the same price for the same product wherever you go, you save the hassle of comparison shopping. You also protect your privacy by limiting who has personal information about you.
The review costs $925 + tax.1
Your satisfaction matters. When you receive the results of your review, decide if they meet your expectations. If you are not satisfied, simply return the findings in that meeting.
If you are satisfied, this is when you pay.
The Actuarial Insurance Review is not for everyone. To benefit,
- you need the ability to make decisions and implement the ones you accept. Otherwise, you won't achieve financial peace of mind. Here are reasons to act now.
- you live in the Greater Toronto Area
Ideally, you're healthy, wealthy and wise.