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Ensure the survival of the company in case of death

Your business' financial health comes as a result of sound planning. Premature death can threaten business continuity and, hence, the survival of your company. Life insurance and a shareholder agreement can help you face the financial repercussions of death on your company, family and loved ones.

Keeping business operations running

Death of a sole proprietor

Upon a sole proprietor's death, the company is usually transferred to the deceased's succession, usually his or her family. If one of the children wants to take over the company, what happens to the other children's inheritance? Life insurance is the ideal solution to ensure fairness within the family, to allow the children who will not be taking over the business to be compensated by a life insurance benefit.

If there is no one in the family to take over the business, taking out life insurance on the owner's life can enable a key employee to obtain the funds required to buy out company assets left to the family.

Death of a key person

The death of a key person can severely compromise company operations. Taking out life insurance on this person's life can allow you to maintain company operations by giving you the opportunity to:

• hire a replacement until a successor is ready to take over the position
• compensate for any backlash due to loss of expertise
• cover operating costs

Meet your financial obligations

Whether you are self-employed, a partner or a business owner, credit insurance allows you to protect your business projects and look to the future with confidence in the event of death. Credit insurance (Loan Insurance and Line of Credit Insurance) covers you in the event of death, since it:

• ensures repayment of insured loan balance, removing this financial burden from the estate or business and easing the transfer of asset to your loved ones or a third party
• allows the succession to dispose of the entire inheritance, since it no longer has worry about paying off the loan

Facilitate business ownership transfer

The death of a business owner or partner can cause major upheaval in a company. To make business ownership transfer easier and help you maintain company operations Partner Death or Disability coverage give you the funds you need to:

• buy back a partner's shares
• increase the value of shares and ownership interests of remaining partners

To prevent potential conflicts, a shareholder agreement is an essential tool that can help you prevent or resolve problems that could arise, especially following the death of a shareholder.

Protect the financial security of your family

In the event of death, your succession could decide to keep the company, sell their shares or liquidate company assets. To be prepared for the unexpected, a guaranteed life insurance amount can:

• help pay any taxes due following liquidation of taxable assets
• help your family maintain its lifestyle by providing replacement income
• ensure fairness among all family members in the event of business ownership transfer
• finance the difference between the sale price of shares and their market value in the event of unfavourable economic conditions or fast sale

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	At a Desjardins Business Centre	Contact an account manager at a Desjardins Business Centre.