Canadian employers are generally familiar with dealing with employees with disabilities from the outset of a condition through to accommodation and helping them return to work successfully. But what happens to health and dental benefits when it’s not possible for an employee to return to work?
On December 4, 2016, I officially became a statistic. At age 39, I had a heart attack. How was this possible? I don’t fit the risk profile: I don’t smoke, I eat carefully, I’m not overweight, I rarely drink, there’s no family history, I go to the gym twice a week, I walk my kids to school nearly every day, and my Fitbit says I take 90,000 steps a week on average.
There’s a strategy used by some companies with their key personnel called (commonly) Split-Dollar Critical Illness Insurance. In theory, it provides key person critical illness protection for the business, as well as funding an asset transfer of some kind to that key individual in the future. The following article is a fairly technical look at the concept, along with the potential risks from a taxation standpoint. If you have any questions about whether this kind of strategy would be appropriate for your business, give me a call.