Professional Corporations

In British Columbia many professionals, such as doctors, lawyers and accountants, are allowed to form a professional corporation.  This does not limit their professional liability but it allows them to leave money in the corporation at a lower tax rate and to income split with family members.

Insurance Solutions

Disability insurance for professionals is crucial.  If a doctor, lawyer or accountant is disabled, they may unable to do their duties.  If they cannot work then they will have no income.  It is important to review the coverage every couple of years so that as income increases so does the coverage.

Critical illness insurance for professionals is to be recommended.  Most do not have pension plans and therefore will have significant assets in RRSP’s for retirement.  The lump sum that is paid 31 days after diagnosis of a covered critical illness will give them money to get the best treatment.