Canada · Case study
A commercial glazing business owner reviewed how to allocate $100,000 a year between permanent insurance and flexible corporate investments.
The owner of a commercial glazing drafting and engineering business had approximately $600,000 in gross annual revenue and paid more than $100,000 in taxes. According to Christian Jaehn-Kreibaum, the owner had no coordinated plan and had received little useful direction from his bank advisor.
An insurance proposal was already on the table: commit $100,000 every year to a whole life policy. The owner needed to understand how that commitment fit the business and what it would leave available for other priorities.
Christian began with a detailed needs analysis. He reviewed revenue, income streams, employees, corporate expenses and tax considerations. He also asked about the owner's concerns and what he wanted the plan to accomplish. That assessment became the basis for deciding how much to commit to insurance and how much to keep available for investing.
Christian recommended an Empire Life participating whole life policy with an annual premium of $30,000. In his assessment, that policy adequately addressed the owner's permanent insurance and estate-planning objectives.
He recommended directing the remaining $70,000 annually—approximately $5,833 a month—to a corporate-class mutual fund portfolio held within the corporation. The owner could adjust, pause or redirect those investment contributions as circumstances changed.
The annual allocation therefore had two distinct purposes. The insurance commitment addressed a long-term protection need. The separate investment allocation gave the owner more flexibility over future contributions and access to corporate investment assets.
Christian reports that the owner appreciated understanding the options before making a decision. He was more comfortable committing $30,000 a year to insurance while retaining discretion over the remaining $70,000 than committing the full amount to the original insurance proposal.
The source describes a recommendation and the client's decision to proceed. The $70,000 is an annual allocation available for investing, not a tax saving or an investment return. The submission does not establish that the two insurance proposals provided identical coverage.
If a proposal commits a large share of your company's surplus to one strategy, ask how the recommended amount was determined. Which objectives does it address? What commitments continue each year? Which contributions can you change if the business needs more cash?
Here, the useful comparison was how the full $100,000 would be allocated and how much control the owner would retain over future funding.
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This case study describes one client’s circumstances and is provided for information only. Individual results vary and are not typical. Projected figures are illustrations based on the advisor’s own case design rather than booked results, and are neither a quote nor a projection of your outcome. Preserve Wealth Group is a referral and marketing platform, not a licensed financial, tax, or legal advisor. Independent licensed professionals implement every strategy described. No client identifying information has been disclosed.
Business owner (industry not specified)
Private business owner, industry not specified
Commodities brokerage
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