ONTARIO - A survey conducted on behalf of Imperial Life Insurance revealed that only 42 per cent of small business owners have implemented a continuation plan for retirement, disability, and death. Of those 42 per cent, 10 per cent could not identify what is in their continuation plan.

"Given that 67 per cent of all small businesses in Ontario are family-owned and that there are close to a million small businesses in Canada, the survey results indicate that a significant number of businesses are vulnerable to unexpected financial and physical setbacks," says David Machry, CFP, CLU, Senior Financial Advisor with Finactive, the online division of The Imperial Life Assurance Company of Canada.

Other findings of the survey found that:

• 55 per cent of Ontario small business owners or primary decision-makers have an estate plan and just over half of these people knew that an estate plan can minimize taxes arising at death
• 46 per cent have made the necessary arrangements to ensure their heirs are protected from paying taxes
• 74 per cent do not offer group insurance plans to employees

"Many respondents cited that they assumed they were not eligible for such plans due to their size, when in fact small group coverage is available on the market, while others admitted they have never considered group insurance as an option," says Machry.

For CanadaOne's article on HR benefits go to:
www.canadaone.com/ezine/nov01/benefit_plans.html

 

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