Does your Business Qualify for the Small Business Gains Exemption?

As a business owner, you may be aware that when you dispose of shares in your business you could receive an exemption on all or a portion of the capital gains that ordinarily would be taxable. This is due to the Lifetime Capital Gains Exemption which says that, for 2019, up to $866,9121 of capital gains is exempt from taxation.

The Lifetime Capital Gains Exemption (LCGE) is available to individuals who are disposing of or deemed to have disposed of:

  1. Qualified Small Business Corporation (QSBC) shares;

  2. Qualified farm property; or

  3. Qualified fishing property2.

For the shareholder of a small business corporation this valuable benefit could reduce or eliminate the tax bill that otherwise would be payable upon the sale or succession of the company. The important thing to understand, however, is that the exemption is not automatic.  There are some conditions that must be met.  In order for the business to be considered a QSBC and therefore qualify for the Small Business Gains Exemption (SBGE) there are two main rules:

Rule # 1 – Ownership of Shares

During the 24 months immediately preceding the disposition the shares must not have been owned by anyone other than the individual tax payer or a related person;

Rule # 2 – Use of Corporate Assets

Also, during this 24 month period;

  1. 50% or more of the fair market value of the corporate assets must have been used in an active business conducted primarily in Canada;

  2. At the time of the disposition (sale or upon death of shareholder), all or substantially all (defined as 90% by the CRA) of the fair market value of the assets must have been used to produce active business income. Some examples of corporate assets which could put a corporation offside with respect to its being a QSBC are cash, bonds, non-business related real estate and other investments.

In situations where corporations do not qualify for the SBGE due to failing to meet the 90% rule, remedies are sometimes available which may provide a solution.  This will usually involve a “purification” of the corporation to distribute or transfer the non-business related assets.  Some examples as to how this could be accomplished are:

  • Paying a taxable dividend to shareholders;

  • Paying down any bank debt or accounts payable;

  • Pre-paying corporate income tax installments;

  • Purchasing new assets which will be used in the business to produce active business income.

There is another area in which careful attention is warranted.  In order for a business to be a Qualified Small Business corporation it must first be a Canadian controlled private corporation (CCPC).  Should there be a sale of shares to either a non-resident or a public corporation, there may be a denial of the capital gains exemption as the corporation may no longer be a CCPC.  This could also be the case where a non-resident executor is named in the shareholder’s will and the shareholder dies.

The rules governing whether or not an individual who owns shares in a small business corporation receives a capital gains exemption are complex and often confusing.  It is important to obtain professional advice when undertaking the appropriate planning.

If I can be of assistance to you, please do not hesitate to contact me.  As always feel free to share this article by using the share buttons below.

Notes:

  • The 2013 federal budget increased the LCGE to $800,000 for 2014 with indexing commencing in 2015.  The indexed amount for 2019 is $866,912.

  • The 2015 federal budget increased the maximum LCGE for Qualified farm or fishing property to the greater of $1 million and the indexed LCGE realized on the disposition of qualified small business corporation shares.  When indexing increases the SBGE to $1 million then both SBC shares and farm and fishing property will enjoy the same LCGE.

The Need for Corporate Life Insurance

Life insurance is used for two general purposes in a private corporation – managing risk and creating opportunities.  The risk management function is satisfied as life insurance provides the corporation with a tax-free payment in the event of the death of an owner or someone vital to the success of the business.  As life insurance also allows for the tax-sheltered build up of cash value additional planning opportunities are additionally created.

The primary needs for corporate owned life insurance to satisfy the risk management purpose are as follows:

Key Person Life Insurance

Any prudent business would insure its company facilities and equipment that is used in creating revenue.  It follows then that the business should also insure the lives of the people that run the company and make the decisions which contribute to its profit.  Any owner, manager or employee whose death would impair the future growth and success of the company is a key person and should be insured as such.

The proper amount of key person life insurance should be determined through discussion with the company’s management, life insurance advisor and accounting professionals. This discussion would analyze and estimate the amount of the loss that could occur to the company should a key person die.

Funding the Shareholders or Partnership Agreement

When more than one person join together to own a company or partnership, it is common business practice that there be a Shareholder’s or Partnership Agreement.  These documents set forth the terms and conditions under which the parties co-exist in the business venture.  It also spells out the financial interest that each hold in the concern and how much would be owed to the heirs of a shareholder or partner should that individual die.  The use of life insurance owned by the corporation for this purpose guarantees that sufficient funds will be available to trigger the agreement.  If there was no life insurance in place and no agreement covering how those funds were to be used, the future existence of the company could be in jeopardy.

 To Repay Debt

Like an individual insuring debt to avoid burdening his or her family with outstanding liabilities in the event of death, a business owner should also consider providing life insurance to cover the corporation’s obligations.  This would ensure that the net value of the company is optimized when it passes either to the heirs and beneficiaries of the owner or to a successor owner which might be a family member.

One of the advantages of corporate owned life insurance to retire debt is the existence of the Capital Dividend Account.  Should the insured business owner die, the life insurance proceeds are received tax-free by the company.  The death benefit less the adjusted cost basis of the policy is credited to a notional account – the Capital Dividend Account (CDA).  Even if all the life insurance proceeds are paid by the company to the creditors to retire the outstanding debt obligations, the credit remaining in the CDA can still be paid tax-free to the surviving or successor shareholders.  This allows any surplus or future earnings to be received by the heirs as tax-free capital dividends up to the amount of the balance of the CDA subsequent to the death of the insured.

To Facilitate Business or Investment Financing

Often when a company borrows to invest or for business operations, the bank will require that the principal(s) of the corporation be insured.  In this case, if the life insurance is purchased as a condition of the bank loan being granted, part of the life insurance premiums become tax deductible to the corporation.  The reasons for providing life insurance to cover the bank loans are consistent with the reasons stated in repaying debt, but with the bank’s written requirement for life insurance, there is now a tax deduction available as well.

There also may be a situation where an investor would look favourably on the business owner being insured before he or she invests in the company.  While there would be no collateral insurance deduction in this case, it may create a comfort level for an investor.

To Assist Family Business Succession

With a family business there is often a desire to transition the ownership of the company to the next generation.  One of the common objectives of this transition is to ensure that the company is left financially sound when it is received by the next generation.  This can be accomplished by having life insurance on the first generation owner to guarantee that the company is left financially viable and debt-free should the succession occur as a result of the death of the business founder.

The above items are all situations where life insurance is used by a business for risk management purposes.  When life insurance is held in a corporation it also can result in attractive planning opportunities.  These opportunities include the following:

Estate Planning for the Business Owner

Owners of private corporations in Canada that are qualifying small businesses have the first $500,000 of annual corporate income taxed at a very favourable rate.  For example, in B.C. and Alberta it is 12%.  The low small business tax rate combined with the Capital Dividend explained above presents the business owner with an opportunity to place life insurance designated for estate planning purposes (e.g. paying taxes arising at death from capital gains), in the corporation.

Sheltering of Corporate Investment Income

While the income tax rate on active business income is quite low, the tax levied against corporate investment income is extremely high.  In some provinces, this tax is over 50%.  Using tax exempt life insurance policies to shelter this investment income can provide substantial opportunities to defer taxes which would otherwise be payable.  All the insurance opportunities for risk management itemized above can also be satisfied by using cash value tax-exempt life insurance.  As a result, there are significant planning opportunities available with corporate owned life insurance.

Protecting the Small Business Income Tax Rate

In addition to the above, once a corporation earns more than $50,000 of passive investment income it starts to erode its small business tax limit of $500,000.  Once the passive investment income reaches $150,000 it loses all of the small business limit for that tax year.  This can be avoided by investing in tax-exempt life insurance policies.  Combined with the previous comments not only does the investment grow tax sheltered, it will not impact the small business income limit.

These are the primary reasons why business life insurance is so important.  Not only does it help manage risk, it can also provide significant planning opportunities for the business owner.  I am available at any time, should you wish to discuss how these ideas could benefit you and your company.

If anything should happen to me…

Don and Kate were nervously anticipating Don’s upcoming life saving surgery.  Don was also concerned that, should he not survive, Kate might not know everything that needed to be done upon his death.  The night before his surgery he made this list for Kate of the things she should do if he didn’t make it through the operation: 

My Dearest Kate

Although I expect to make it through this surgery it has got me thinking that anything could happen to any of us at anytime and we are rarely prepared. 

So, if anything should happen……………. 

  1. Before you tell anyone that I didn’t make it– Clean out our safety deposit box and joint bank accounts. Everything is going to you anyhow and when the bank finds out I’m dead, they’re liable to close off all access to them until my will is probated.

  2. Call the funeral director– But go there with somebody who won’t be suckered into buying the fanciest coffin.  Just remember, the money you spend on my funeral won’t be available for the big wake I want you to throw for me!

  3. Gather up all my important papers– My will, life insurance, disability insurance, and general insurance policies, business agreements, banking information, notes receivable or payable, stock or bond certificates, real estate deeds, recent tax returns, marriage, birth and death certificates, military records, automobile registration forms and all recent contracts. Don’t throw away anything that looks official, even if it appears to be terminated.

  4. My passwords are in the bottom left hand drawer of my desk in a note book which should be a big help to you in managing those accounts.

  5. Call our life insurance agent– He’ll not only help you in collecting the money from my life insurance, but also in collecting the death benefits of my group insurance, company pension, social security, as well as the death benefits from my variable annuities.

  6. Call our accountant– He’ll be needed for the various tax returns that must be filed.

  7. Call our attorney– She’ll tell you what other stuff is needed and what must be done to settle my estate.  She’ll also tell you whether my will has to be probated (a process to prove my will is valid).  Our attorney will also advise you on whether there are any federal or state estate taxes. As far as state probate costs, I’ve tried to minimize them through joint ownership of most of our assets and naming beneficiaries where I could.

  8. Call the other executors– You know you are my primary executrix, and you know who the other two are, so call them.  Even though our lawyer will probably call them, it would be nice if they heard from you first.

  9. Call my business associates– My partner will want to know that our buy-sell agreement has just been triggered so he can collect the insurance money to buy my share of the business from you.  And call my assistant Marie in Admin to spread the word.  Ask her if there’s anything else coming to you such as unpaid expense accounts, ongoing group benefits, etc.

  10. DON’T PANIC! I picked my executors and the above-mentioned professionals to assist and advise you in this situation.  So let them do their jobs and help you.  And don’t rush into anything, like selling the house, or anything major, for at least a year.  With my life insurance and all the other benefits coming to you, you can take your time and make better decisions when the time is right.

Fortunately, Don survived his surgery and is on the road to recovery. Don decided that he would attach this list to his will for Kate to refer to in the future, because, well, you never know….

Life Insurance – Do You Buy, Rent, or Borrow?

Without a doubt, life insurance is valuable protection provided by your employee benefit plan, but should it be the only life insurance coverage you have? Probably not, if you want to ensure you have sufficient long term protection to cover all your family’s financial needs should you die unexpectedly.

In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance. Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract. This means that almost 40% rely solely on the life insurance provided by their employer. This can be problematic. The disadvantages of having your employee benefit plan as your only life insurance protection include the following:

It is probably not enough to pay off your mortgage and/or provide income for your spouse and family.

The amount of life insurance protection provided by group insurance in most cases is equal to only one or two times annual income. If this is not enough to do the job, the addition of individual life insurance should be considered.

If you lose your job, you may also lose your life insurance protection.

If you are currently employed in an industry or with a company that may be at risk due to economic conditions, you may find yourself with no life insurance at all.

Upon retirement, or if you leave your job, in most cases you will lose your group insurance. While group life insurance usually contains an option to convert to an individual plan, the plans that are offered are usually restrictive or very expensive.

What place should group life insurance hold in your planning?

To answer that question, let’s first look at the differences that individual life insurance has compared to group. Individual life insurance comes in two forms– term life insurance (which expires at a certain age) and permanent life insurance (e.g. Universal Life or Whole Life) which provides protection for one’s entire life and can also build savings through a cash value.

One can consider the specific type of life insurance, therefore, as being one of three categories:

• Permanent life insurance – the type you own. By paying your premiums each year you build up equity in your insurance. At some point in time, the policy may be fully paid up or self-supporting. You can even take advantage of your equity in the policy by borrowing – similar to borrowing against the equity in your home.

• Term life insurance – the type your rent. Term life insurance usually has a renewal period which could be ten years, twenty years, or even longer. At the end of this period, your “lease” renews for a higher premium (“rent”). When you rent a home you never build up any equity and this is the same with term insurance. After paying all those rental premiums the policy expires at a certain age with no cash value.

• Group life insurance – the type you borrow. You, the insured do not have a contract with the life insurance company as that arrangement rests with the employer. The employer and the insurance company retain the right to cancel the entire benefit plan. As a result, the analogy can be made that your employer is “lending” you the coverage.

In reviewing these three types of coverage, it is advisable that you should have a base or foundation of permanent coverage which would provide protection for life at a fixed cost. This also provides the added advantage of creating equity which could be borrowed against should a future need for cash arise.

You could then consider layering lower cost term insurance to protect a growing family and ensure that there would be enough capital to retire debt and provide for family income. With a family, there is a very high dependency period when the children are young, and the expenses are high. Low cost temporary insurance is used to provide adequate protection during this period. Term insurance also comes with the bonus of being convertible to permanent coverage should you become uninsurable with a far greater choice of options than those with a group life conversion.

Lastly, for those with group life insurance, this coverage can be looked upon as forming part of the term insurance needed or as a top up to provide for contingencies.

Give me a call if you would like to discuss restructuring your life insurance coverage to provide the maximum result. As always feel free to share this article with those you think would benefit from this information.

Get Your Corporate Dollars Doing Double Duty

Owners of very successful private corporations are well aware of the importance of cash flow. Many are protective of how they allocate corporate capital so that business ventures are adequately funded and investment opportunities are not missed.  

The Immediate Financing Arrangement offers an opportunity to provide life insurance coverage and accumulate wealth on a tax-advantaged basis without impairing corporate cash flow.

What is an Immediate Financing Arrangement (IFA)?

An IFA is a financial and estate planning strategy that:

·      Combines permanent, cash value life insurance with a conservative leverage program allowing the dollars allocated to the life insurance premiums to do double duty by still being available for business and investment purposes;

·      In the right circumstances and when structured properly so that all possible tax deductions are used, an improvement in cash flow could result.

Who should consider this strategy?

IFA`s are not for everyone. For those situations that best match the necessary criteria, however, significant results can be achieved. The best candidates for an IFA usually are:

·      Successful, affluent individuals who are active investors or owners of thriving privately held corporations who require permanent life insurance protection;

·      Of good health, non-smokers, and preferably under age 60;

·      Enjoying a steady cash flow exceeding lifestyle requirements;

·      Paying income tax at the highest rate and will continue to do so throughout their life.

How does it work?

·      An individual or company purchases a cash value permanent life insurance policy and contributes allowable maximum premiums;

·      The policy is assigned to a bank as collateral for a line of credit;

·      The business or individual uses the loan advances to replace cash used for insurance purchase and re-invests in business operations or to make investments to produce income. This is done annually;

·      The borrower pays interest only and can borrow back the interest at year end;

·      At the insured’s death the proceeds of the life insurance policy retire the outstanding line of credit with the balance going to the insured’s beneficiary;

·      If corporately owned, up to the entire amount of the life insurance death benefit is available for Capital Dividend Account purposes.

Proper planning and execution is essential for the Immediate Financing Arrangement. However, if you fit the appropriate profile, you could benefit substantially from this strategy.

If you wish to investigate this strategy and whether it can be of benefit to you, please contact me and I would be happy to discuss this with you. As always, feel free to use the sharing icons below to forward this to someone who might find this of interest.

Recover Your Long Term Care Costs

(Back to Back Long Term Care)

Will your family be affected by the costs of caring for an aging loved one?

Statistics Canada states that over 350,000 Canadians 65 or older and 30% of those older than 85 will reside in long term care facilities. With increasing poor health and decreased return on investments, the fear of facing financial instability in your declining years is real.

How will this impact your family?

Caring for an aging parent or spouse takes its toll emotionally and financially. Adult children with families and job pressures of their own are often torn between their obligations to their parents, children and careers. This often results in three generations feeling the impact of this care.

Is it important to you to have control over your level of care?

Consider this:

·      The cost of providing for long term care is on the rise

·      While many Canadians assume that full-time care in a long term care facility will be fully paid by government health programs; this simply is not the case. In fact, only a small part (if at all) of the costs of a residential care facility will be paid by government health care programs

·      28% of all Canadians over the age of 15 provide care to someone with long term health issues

·      For the senior generation, the prospect of the failing health of a spouse puts both their retirement funds and their children’s or grandchildren’s inheritance at risk 

·      Capital needed to provide $10,000 month benefit (care for both parents) for 10 years is $ 1,000,000 (if capital is invested at 4% after-tax)

Case Study

Norman (age 64) and Barbara (age 61) have three children, aged 32-39. While still in good health the family does have a concern for their future care.

To safeguard against failing health it was decided that they purchase Long Term Care Policies to protect their quality of care and a Joint Last to Die Term 100 Life Insurance Policy to recover the costs.

The Long Term Care policies would pay a benefit for facility care in the amount of $1,250 per week for each parent. The monthly premium for $10,000 per month Long Term Care for both Norman and Barbara is $544.17.

The Premium for a Joint Last to Die Term to Age 100 policy with a death benefit of $250,000 is $354.83 per month.

Upon the death of both parents $250,000 is paid to the beneficiaries (children) tax free from the life insurance policy, returning most if not all of the premiums paid.

 

Advantages of the Long Term Care Back to Back Strategy·      Shifts the financial risk of care to the insurance company

·      Allows for a comfortable risk free retirement

·     Preserves estate value for future generations

When is the best time to put this structure in place?

·      Remember, the older the insured, the higher the costs

·      Do it early while you are still insurable!

Please call me if you think your family would benefit from this strategy. Feel free to use the sharing icons below to forward this to someone who might find this of interest.

Should you wish to learn a little more about long term care, the Canadian Life and Health Insurance Association (CLHIA) has published a brochure which can be downloaded here

What the Wealthy Know about Life Insurance

If you have ever thought that life insurance was something you wouldn’t need after you reached a certain level of financial security, you might be interested in knowing why many wealthy individuals still carry large amounts of insurance. Consider the following:

·     A life insurance advisor in California recently placed a $201 million dollar life insurance policy on the life of a tech industry billionaire;

·     Well known music executive David Geffen was life insured for $100 million;

·     Malcolm Forbes, owner of Forbes Magazine, was insured at the time of his death in 1990 for $70 million.

While life insurance is most often looked upon as a vehicle to protect ones family or business, the question that springs to mind is why would individuals with wealth need life insurance? 

The most common factor connecting people of wealth is that they have a substantial amount of deferred income tax that must be paid upon death.   In addition, they often have a strong desire to make a substantial donation to a favourite charity or educational institution.

“Life insurance is an efficient way to transfer money to your heirs.” – Malcom Forbes

In Canada, individuals are deemed to have disposed of all their assets at fair market value when they die, which often results in taxable capital gains and other deferred taxes coming due. Paying premiums for insurance that will cover these taxes is almost always less expensive and more efficient than converting assets.

When allocating your investment dollars, it is helpful to understand what investments have the highest exposure to income tax.

Fully Tax Exposed

Investments which are taxed at the highest rate of income tax:

·     Interest bearing instruments such as bonds, savings accounts, guaranteed investment certificates;

·     Rents;

·     Withdrawals or income from registered plans such as RSP’s or RPP’s.

Tax Advantaged

Investments which are taxed at lower rates of income tax:

·     Investments which are taxed as a capital gain;

·     Dividends;

·     Flow through share programs;

·     Prescribed annuity income.

Tax Deferred

Investments on which income tax is deferred until the asset is disposed of or the investor dies:

·     Registered Savings Plans;

·     Individual and Registered Pension Plans

·     Investments producing deferred capital gains.

Registered plans, in addition to having the growth tax deferred also have the added advantage of the contributions being tax deductible.

Tax Free

Certain investment assets are totally free of income tax:

·     Principal residence;

·     Tax Free Savings Accounts;

·     Death benefit of life insurance policies.

Life Insurance as an Investment

While the death benefit of life insurance policies is tax free, it is important to recognize that this also includes the investment gains made on the cash value portion of the policy. With this in mind, many investors have discovered that by allocating a portion of long term investments to a Universal Life or Participating Whole Life policy, the results can be significant when compared to tax exposed or tax advantaged investments.

Life Insurance for Estate Planning

One of the main objectives of estate planning is to maximize the amount we leave to our families or bequeath to our favourite charities. What many wealthy families have learned is that one of the easiest ways to accomplish this is to reduce the portion of the estate which is lost to the government to pay taxes at death.

While this helps explain why many individuals of wealth maintain life insurance, it also underscores the advantages of life insurance to anyone who will have taxes or other liquidity needs at death. In addition, using life insurance as part of a charitable giving strategy can provide significant benefits to both the donor and the charity.  

As Malcolm Forbes alluded to, for providing capital to protect your family’s future financial security, paying taxes at death and creating a charitable legacy, nothing is more efficient or effective than life insurance. 

Please feel free to share this article with anyone who may find it of interest.

 

Charitable Gifting with Shared Ownership Universal Life Insurance

Many individuals have realized their charitable aspirations by donating a life insurance policy to the charity of their choice. In situations where that donation is a Universal Life policy, the use of a Shared Ownership strategy could prove to be a viable investment for the donor.

Shared Ownership refers to an arrangement involving cash value life insurance policies such as Universal Life. Universal Life combines life insurance with an investment fund which grows tax deferred until the cash value is withdrawn. If the cash value is paid out at death, the growth is tax free. 

Under Shared Ownership, the life insurance and the cash value would have different owners and beneficiaries and would be structured as follows:

·     The owner and beneficiary of the death benefit of the life insurance would be the charity. 

·     The owner of the investment portion would be the donor and the beneficiary would be his or her spouse of other family members. 

·     The donor would pay the cost of insurance on behalf of the charity and receive the donation receipt

·     Any investment deposits to the policy would grow tax sheltered for the benefit of the donor and his or her family.

Case Study

John is a 45 year old business owner who wishes to leave $1,000,000 at his death to his favourite charity. He arranges for the charity to purchase a $1,000,000 Universal Life policy on his life. John pays the annual premium on behalf of the charity ($11,724) and receives the charitable donation receipt.

As a result of a Shared Ownership Agreement between John and the charity, John owns the investment account of the Universal Life policy and deposits $10,000 per year for 10 years. His wife is beneficiary of the investment portion of the policy should he die. This deposit is in addition to the $11,724 cost of the insurance that he pays on behalf of the charity.

The cash value portion of the policy grows tax deferred, and if the cash value is paid out as a consequence of John’s death that growth is received by his beneficiary tax-free. If we assume that the investment account of the policy earns 5% per year and we compare that to an alternative investment earning 3% after tax (comparable to 5% before tax), the results are as follows:

With Shared Ownership, it is possible for both the charity and the donor to benefit. The unique tax advantages and flexible design of a Universal Life policy make this an ideal vehicle for this strategy.

Give me a call if you think this strategy will work for you. As always, please feel free to share this information with anyone you think will benefit from it.

* If John withdraws from the Universal Life policy while he is living he may be subject to tax. He does, however, have a much larger fund to borrow against than he would under the alternative investment fund. Should John die, his wife would receive the full amount of the investment fund tax free. 

Universal Life example illustrates Sun Life Universal Life II for a male age 45 non-smoker level cost of insurance with additional deposits of $10,000 per year for the first 10 years, projected at 5% for life.

Do You Need Individual Life Insurance?

Canadians may need to rethink their risk management 

In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance. Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract. 

In another study of middle class Canadians, Manulife reported that 79% had no individual disability insurance and 87% had no individual critical illness coverage. What both of these studies conclude is that most Canadians rely heavily on their group benefits for their family’s insurance protection.   

What’s the problem with that?  

  • Group insurance protection is tied to employment and if the company for any reason changes or cancels the coverage, the employee stands to lose valuable and necessary protection.  
  • If you are currently employed in an industry or with a company that you feel is at risk due to economic conditions, it may be time to reevaluate your insurance mix. You lose your job, you may lose your life insurance protection.
  • For many group plans, the maximum life coverage provided is only two times annual earnings. 
  • For those plans that provide critical illness coverage, the amount provided is very minimal.

What happens when you retire? 

Almost all group insurance plans cease upon retirement which for most Canadians is still age 65. To protect spouses and dependent children, some life coverage should be maintained after age 65. Converting group life coverage to an individual plan can be expensive as you get older. Individual coverage purchased earlier in life is the most cost effective way to protect your family in the long term.   

If you feel you may be at risk of being underinsured or in danger of losing your group insurance coverage it may be time to integrate some individual insurance protection into your portfolio. 

Give me a call if you would like to discuss this further and as always feel free to share this article with those you think would benefit from this information.