A buy-sell agreement is a written form of contract between two or more people wherein terms are set forth indicating how the assets of one or more person may be acquired by another or others in the event of sale of the company, death of one of the pincipals or his/her retirement.

The agreement could also set out the duties of each participant and their individual share compared to the others.

The terms can be very simple or may involve the services of an estate planner, accountant, and lawyer.

“Key Man” could be defined as the “significant person or persons” in a given business.

For example, Mr. A may be the idea man and Mr. B the promotion and sales person.
Without the full services of either, the business would suffer financially and may well fail before others can fill his/her position.

Both disability and life insurance would be placed on both parties so that in the event of their disability or death, the amount generated by the applicable policies would be payable to the company to both cushion the financial loss and to give the company the time to replace the “Key Person”.

This is only a very brief overview.

Disability income provides partial replacement of earnings or income in the event of an inability to work due to a covered illness or injury.

Policies are purchased with various “start date” options as well as maximum indemnity periods.

This is only a very brief overview. For a detailed description of all coverage, refer to an actual policy wording.

• employee life insurance - employee death benefit
• dependent life insurance - employee family death benefit
• accidental death & dismemberment insurance - employee death benefit for severe accidental bodily injury or accidental death
• short term disability insurance - benefit to the employee when unable to work due to illness or injury for 1 to 17 weeks
• long term disability insurance - benefit to the employee when unable to work due to illness or injury for long term to age 65 maximum
• healthcare insurance - supplemental coverage to the provincial healthcare plan for insured employees and their dependents -choice of Plan Options
• dental care insurance - dental services coverage for insured employees and their dependents - choice of plan options
• employee assistance program

• an employer sponsored Registered Retirement Savings Plan (RRSP)
• employees offered the convenience of regular contributions
• employees benefit from returns as members of a larger “group”
• includes an employer contribution schedule
• total yearly RRSP contributions are tax receipted to the employee