Essential Passive Income Concept (EPIC)

An integrated planning approach for business owners and incorporated professionals.

The Essential Passive Income Concept (EPIC) is a dynamic planning approach that will assist corporations address their long-term planning needs.

Available exclusively through Desjardins Insurance, EPIC will help differentiate advisors working in the corporate market. The goal of an EPIC strategy is to:

• Improve corporate risk management
• Enhance retirement planning options
• Address taxation issues brought on by the passive investment income rules

EPIC is a concept that brings together well-known solutions in a format that:

• Is client-friendly with a professional design
• Is concise yet robust enough to bring to the accountant
• Is customizable to the client’s specific needs
• Outlines the need for an ongoing planning relationship

• Helps reduce the impact on the corporation’s Small Business Deduction (SBD) due to the passive investment income rules
• Enhances corporate liquidity in the case of a shareholder’s death or critical illness, if insurance is part of the solution
• Reduces the corporation’s tax burden, resulting in significant cumulative tax savings
• Improves retirement planning opportunities if an Individual Pension Plan or Corporate Insured Retirement Income Plan is part of the solution
• Creates more planning flexibility for your client and their corporation, now and into the future

Insurance:

• Corporate-owned life insurance: term, permanent, participating whole life, universal life – Term 10, 20 and Term to 100
• Corporate-owned critical illness insurance: Health priorities – term and permanent
• Executive Health Plan (EHP): Health priorities – business

Investments:

• Guarantee Advantage^®

Retirement savings:

• Individual Pension Plan (IPP)

EPIC is designed for clients who are:

• Business owners or incorporated professionals (note: limitations exist for incorporated professionals in the province of Quebec)
• Canadian-controlled private corporation (CCPC)
• Established, stable operations that qualify for the Small Business Deduction (SBD)
• Invested retained earnings of more than $1,000,000, generating more than $50,000 in income
  • Invested retained earnings could be less than $1,000,000 if the corporation also has income from rents or royalties
• PIIIC analysis shows a current or developing problem with access to the SBD

1. Identify clients who have a current or developing problem with access to the SBD.
2. Contact your RSD to obtain an EPIC Questionnaire.
   1. Identify your client’s corporation and any associated corporations
   2. List active business income, passive investment income and other passive corporate income
   3. Identify solutions that are in place or being considered to address this issue
   4. Prepare illustrations for life and critical illness insurance needs
   5. Request the IPP quote from rri.ipp.act@dsf.ca (if applicable)
3. Once your EPIC Questionnaire has been completed, you can send it together with the PIIIC report, proposed planning solutions, life and CI insurance product illustrations and concept reports and IPP quote, if any, to epic@desjardins.com.
4. As a part of the EPIC service offer, a consultation with an EPIC specialist will be available to you as the report is being prepared. This will give you a first look at the EPIC tax savings projections and provide you with an opportunity to fine-tune the solutions with our EPIC specialist.
5. The EPIC specialist will then send the Epic report to you and your RSD.