Quadrant Estate and Insurance

Quadrant Estate and Insurance Services (QEIS) supports Quadrant in providing innovative insurance based solutions to meet a client’s needs.

Insurance products and strategies have changed dramatically over the last number of years and now provide better investment disclosure and options than ever before. It is difficult to keep abreast of all these changes so QEIS has enlisted the support of independent insurance consultants who work with QEIS to ensure a client gets the right product.

QEIS has advised clients on many insurance strategies including:

  1. Shareholder Buy-out insurance. Structuring the funding of a buy-out requires reviewing tax as well as risk management issues. In certain situations, the insured may want capital gains treatment and in other cases dividend treatment. Attention must be paid to maximizing the capital dividend account. Risk management requires ensuring the insurance proceeds will be available to satisfy the buy-out and not be subject to creditor (including family) claims.
  2. Retirement Compensation Arrangements (RCA) using Split Dollar policies with the investment portion of a Universal Life in the RCA Trust and the face value of the policy held outside to access this tax-free. An RCA can provide a mechanism to remove funds from a corporation on a tax effective basis while providing creditor protection and pension like benefits. Using a Universal Life policy allows investments inside the policy to grow on a tax deferred basis.
  3. Leveraged Solutions such as:
    1. Accessing an Investment Credit Facility in a 9-7 (formerly 10-8) strategy for funding insurance with minimal after-tax cost;
    2. back-to-back policies with a loan facility (triple) to unlock retained earnings of a corporation upon the death of a parent or founder.
    In some cases, the insured has a need for significant insurance coverage but requires or wants to maintain an investment in a business or a portfolio. By accessing a credit facility (leverage) both the objectives of obtaining insurance and maintaining investments can be satisfied.
  4. Disability Policies for Management Buy-outs. In some cases there is a need to fund all or a portion of a buy-out on the disability of a shareholder or key employee. Quadrant will consider the use of disability buy-out policies as well as consider replacing or supplementing disability insurance with critical illness insurance.

QEIS provides advice on life and disability insurance and can access products of most life insurance companies. Its services are provided separate from Quadrant Asset Management. Murray Palay and Michael Susser are registered with the respective insurance councils in the provinces they transact insurance business.