Access Retained Earnings Tax-Free with the Executive Health Plan (EHP)
The Executive Health Plan (EHP) enables business owners to utilize retained earnings tax-efficiently while securing critical illness coverage, ensuring both financial growth and health protection.
Safe Pacific’s EHP allows incorporated professionals to share ownership of a critical illness insurance policy with their company. The corporation pays for the critical illness coverage, while the individual funds the return of premium benefit. If a critical illness occurs, the company receives a tax-free lump-sum benefit; if no claims are made, the individual can receive up to 100% of the premiums paid.
A Strategy for Health and Financial Security
The EHP provides critical illness protection for both the business and the individual, offering a tax-efficient method to access retained earnings and ensuring financial stability in the event of serious illness.
What is the Executive Health Plan?
The Executive Health Plan (EHP), also known as Shared Ownership Critical Illness Insurance, is a strategic solution for Canadian business owners and professionals to access retained earnings tax-efficiently while securing critical illness coverage. In this arrangement, the corporation and the individual share ownership of a critical illness insurance policy.
The company pays the premiums for the critical illness benefit, protecting itself against financial loss if the insured suffers a covered illness. The individual pays for the return of premium benefit, allowing them to receive up to 100% of the premiums paid if no claims are made. This strategy not only safeguards the business but also offers a risk-free return on investment for the individual.
How it Works
The Executive Health Plan utilizes shared ownership of a critical illness insurance policy to provide tax-efficient access to retained earnings and comprehensive health protection for both the business and the individual.
Establish Shared Ownership Agreement
A legal agreement is created between the corporation and the individual, outlining shared ownership of a critical illness insurance policy.
Premium Allocation
The corporation pays for the critical illness coverage; the individual funds the return of premium benefit.
Critical Illness Occurrence
If diagnosed with a covered critical illness, the corporation receives a tax-free lump-sum benefit to mitigate financial losses and maintain business continuity.
Return of Premium
If no critical illness occurs during the policy term, the individual can receive up to 100% of the premiums paid, providing a tax-efficient return on investment.
Benefits of the Executive Health Plan
Access retained earnings tax-efficiently while securing critical illness coverage.
Tax-Efficient Access
Utilize retained earnings without triggering additional taxes, optimizing financial resources.
Health Protection
Provides critical illness coverage, ensuring financial stability for both the business and the individual during health crises.
Return of Premium
Offers up to 100% return of premiums paid if no claims are made, serving as a risk-free investment.
Tax-Efficient Growth
Policy cash value grows tax-deferred, maximizing savings and ensuring efficient wealth transfer.
Ready to Access Retained Earnings Tax-Free with the EHP?
If you’re ready to access your retained earnings tax-free while securing your health and financial future, let’s talk. Contact us today to explore how the EHP can maximize your wealth and protect your business.
Book a ConsultationComparing the EHP to Traditional Critical Illness Insurance
The EHP offers tax-free access to retained earnings and investment growth, surpassing traditional critical illness insurance.
Advantages of Traditional Critical Illness Insurance
Traditional CI insurance provides lump-sum payouts upon diagnosis but lacks tax-efficient savings and access to retained earnings.
Advantages of the Executive Health Plan
- The EHP offers tax-free growth.
- Access to retained earnings if no claims are made.
- The option for a tax-free return of premiums—ensuring both health protection and efficient wealth management for business owners.
Real Numbers
Consider a 45-year-old business owner who allocates $50,000 annually into an EHP. After 10 years, they access the return of premiums tax-free if no claims are made, effectively converting retained earnings into a tax-free payout.
A Legacy for Generations
The EHP secures a tax-free return of premiums for business owners if no claims are made, ensuring a lasting financial legacy and maximizing retained earnings for future generations.
The EHP is a specialized strategy rarely promoted by traditional banks. It’s offered by expert advisors who understand its tax-free growth, health protection, and legacy benefits—making it a powerful but lesser-known strategy.
They say the best time to plant a tree was yesterday, and the second best time is today. The same goes for financial planning—you may need time for your plan to grow, but the sooner you start, the better. Taking action now gives you more opportunities to build wealth, protect your assets, and secure your future. The key to long-term success is starting as early as possible.
Client Testimonials
See how our strategies have been successful from our clients.
"We worked specifically with Jordan who was knowledgeable, thorough, and patient."
We worked with Safe Pacific Financial to help us find the right life Insurance policy for us, and we are very happy with the service they provided. We worked specifically with Jordan who was knowledgeable, thorough, and patient with our many questions. We would certainly work with Safe Pacific Financial again and would recommend them to friends and family.
"Jordan was amazing to work with!"
Jordan was amazing to work with! He was patient and understanding when it came to answering all my questions and concerns. I highly recommend Jordan for any financial needs!
"Jordan was able to explain them in a simple and digestible manner."
My wife Brooke and I had a great experience working with Safe Pacific and their team. Although some of the insurance industry and the investment products can be complex, Jordan was able to explain them in a simple and digestible manner which really helped us to understand the long term value. I would highly recommend the Safe Pacific team and we look forward to working with them more in the future.
"Had a great experience with Safe Pacific."
Had a great experience with Safe Pacific. As someone who doesn't understand the business of insurance, I was not stressed at all with the process and Jordan and his team made it smooth and explained the entire process. They were responsive in a timely manner and helped me get a great deal on my disability insurance. Would highly recommend!
"Would highly recommend their services and support."
Jordan and Megan were very helpful in helping my partner and I secure term insurance and CI insurance. We talked with both of them about our current situation and context, and Jordan was able to walk us through the options and clearly laid out his recommendation. He answered all of our questions and followed up promptly as we moved along with the selection and registration process. Would highly recommend their services and support.
"They always make me feel like a priority."
The great thing about working with Safe Pacific is the personal touch they add to the service and how they always make me feel like a priority. Thanks Laurent and Rob for taking care of me.
"I highly recommend them to my colleagues."
I have worked with Robert Trasolini and Laurent Munier several times and I find them extremely helpful when it comes to Life, Critical illness and Disability insurance. They are able to explain things clearly and are really great guys to work with. I highly recommend them to my colleagues, clients and friends.
"Every step of the process."
Robert recently helped me acquire life and critical illness insurance. Not only did he explain every step of the process and walk me through it in a thorough and detailed manner, but Rob is great at taking complex terms and concepts and explaining them in simple, easy to understand manner.
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At Safe Pacific, we’ve spent over a decade helping Canadian families implement innovative wealth-building strategies like the Waterfall Concept. Contact us today to learn how this approach can work for your family’s unique financial goals.
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