EXECUTIVE HEALTH PLAN FOR BUSINESS OWNERS

The Executive Health Plan (EHP) allows you to own a critical illness policy jointly with your company. Your company will receive a lump-sum benefit if you are diagnosed with a covered critical illness, and if you remain healthy, you will get back up to 100% of the premiums paid by both you and your company.

In the event of a critical illness, your company can use the non-taxable lump-sum benefit to:

• Keep its financial plans on track
• Limit its financial losses by hiring qualified replacement personnel
• Repay debts, thereby reassuring its creditors, suppliers and customers
• Buy back your shares, or the shares of another shareholder who is ill or wishes to retire
• Help you get back on your feet by paying you a portion of this amount.

A solution for your business in the event of a critical illness

The Executive Health Plan (EHP) allows you to own a critical illness policy jointly with your company.

Your company will receive a lump-sum benefit if you are diagnosed with a covered critical illness, and if you remain healthy, you will get back up to 100% of the premiums paid by both you and your company.

In the event of a critical illness, your company can use the non-taxable lump-sum benefit to:

• Keep its financial plans on track
• Limit its financial losses by hiring qualified replacement personnel
• Repay debts, thereby reassuring its creditors, suppliers and customers
• Buy back your shares, or the shares of another shareholder who is ill or wishes to retire
• Help you get back on your feet by paying you a portion of this amount.

Setting up an EHP

1. Your company and you jointly purchase Health Priorities – Business critical illness insurance.
   – Your company pays the portion of the premiums for the critical illness and death benefits for the needed coverage period.
   -You pay the portion of the premiums for the health benefit.
2. Your legal advisor prepares a shared ownership insurance agreement.
3. At the first of the following events, a non-taxable benefit is paid if:
   – You are diagnosed with a covered illness, your company receives the critical illness benefit.
   – You die, your company receives the death benefit.
   – You remain healthy until the expiration of the coverage period needed by your company, you can claim the health benefit.

Shared ownership insurance agreement

This agreement sets out the rights and obligations for the parties involved in this insurance contract. It is established for a period of time equal to the coverage period needed by the company. It indicates the portion of the premiums assumed by your company and yourself.

How it works:

Defer your premiums for one year without interest

If your business experiences financial challenges that make it difficult to pay the EHP premiums, you have the option of deferring them for one year without paying interest. Please note that your EHP coverage must have been in-force for at least five years prior to requesting a deferment.

EHP is also for key employees

Long-term absence of a key employee can often create just as big of an impact on a business as the owner’s absence, you can also set up an EHP for your employees.

• Ensure the smooth running of your business in the event a key employee is away due to a critical illness.
• Show your appreciation to your most important contributors with the Health benefit.
• Make your employee’s recovery as worry-free as possible.

Long-term care (loss of independence)

If you are no longer able to perform at least two of the six activities of daily living on your own or if your mental capacity threatens your health or safety for 90 consecutive days, an advance payment for long-term care is paid to your company. This one-time advance is equal to 15% of the insurance amount, up to a maximum of $25,000.

If you recover from this condition, the remainder amount of insurance will be available in the event of another covered illness, other than temporary loss of independence. If you do not recover and there is no reasonable chance of recovery, the remaining balance of the insurance amount is paid in full.

24/7 Health support

The EHP includes complimentary assistance services for you and your family which are available at any time online or by phone, including:

• A health and well-being platform with reliable resources to help you make informed decisions
• 24/7 phone assistance services.
• Direct consultation with a doctor to answer your questions and connect with world-renowned specialists to confirm a diagnosis and determine an optimal treatment plan.
• Psychological counselling, as well as support from a health assistance team during recovery

CRITICAL ILLNESS INSURANCE V/S DISABILITY INSURANCE

Critical illness and disability insurance have some similarities that may help you and your family through turbulent times due to health problems, but they function differently and offer solutions for different financial needs.

Disability insurance provides monthly payments that replace part of your income if you are unable to work due to injury or illness. This insurance covers your living expenses and allows you to maintain your standard of living while you are disabled or for the period you choose with your insurance.

Acute illness can lead to unexpected expenses which can affect your long-term savings. Disability insurance only applies to meet your lifestyle expense. Critical illness insurance provides an immediate lump sum in case of diagnosis of one of the critical illness conditions covered by the insurance policy. A lump sum payment can be used at your convenience, such as medical expenses for illness or nursing care for family members.

Many ill people can continue to work but are not eligible for disability insurance benefits.