How to get Trudeau to pay for your insurance

I got a message on LinkedIn this week from an old school friend who happens to be CFO at a mid-sized oil operator in Calgary. 

“I have a crazy story and I need some help with a disability policy. Give me a call when you get a chance.” 

Turns out he had spine surgery about 12 months ago for a slipped disc, but they made a mistake. They didn’t fix the right disc and then lied and covered it up. 

Scandalous.

The surgery was done by a resident (when it wasn’t supposed to be) and they fixed the wrong disc. I’m not sure if it could be much worse.

But I’ve heard stories of people being sowed up with sponges inside them and all sorts of mistakes.

But that’s usually in the US and then they get sued into Kingdom Come, usually.

He’s ok, as he had another surgery to fix it, thankfully. Actually, that’s when the new surgeon told him all about the fraud committed mess up.

And for 9 months he needed a cane to walk.

He’s 42, by the way.

Generally healthy. Minus this whole botched surgery.

Suffice to say, he’s now back to it.

I then asked him about his group plan.

“We have a pretty basic one.”

 By the way, this is the CFO. He’s responsible for the group plan. 

“Which is why I bought this top-up of DI,” he tells me.

This is kind of funny but isn’t.

My friend knows the group plan he has is “basic”, as he put it. He knows he needs more coverage and gets it. But he also knows that the company should only buy:

Enough group to keep employees with the company. No less, no more. 

If you’re on this newsletter and sell group, you know what I’m talking about. 

I told my friend, that there is a strategy to get the good DI, but have the company pay for it.

And, it’s usually just done for the executive class. 

I told him he should propose this to the owners (of which he is one of them).

Here’s how it works:

All the executives get their own plans. The company owns and pays for them. The company gets a deduction.

The executive gets a very good DI plan (a form of compensation) with no tax.

Imagine for a second getting a tax-free raise in your income. That would be amazing.

Well, it’s possible with the Wage Loss Replacement Plan, otherwise known as grouped individual disability plans. There is really no easy way to say it, lol.

But it’s between 30-50% more tax effective than buying your own plan. 

When is it ever possible to have your company pay for your personal expenses and not get hit with a taxable benefit? 

I’m not sure how many there are, but this is one of them.

And most people don’t know about it. Others know about it, but have forgotten as its so rarely used and talked about these days.

But, it is a legitimate way to get more disability to your most important clients and then have Mr. JT, Justin Trudeau himself pay for it. 

As far as I can tell, the government wants you to buy health insurance. They have all sorts of incentives and special tax treatment to do it.

So be patriotic. Support your country.

Buy insurance.

One other note, because I know I’ll get questions on it.

Don’t add Return of Premium to these plans. Or, do it at your own risk. I definitely do not recommend it. It could taint the whole plan. 

And, yes, the benefits are taxable if the client claims. But, the insurance company will allow you to gross it up to take care of the tax issue.

Yes, this costs more premium.

But, no, it’s still cheaper to have the company pay for the whole thing. Tax rates being what they are these days.

And, the insurance company will also tack on an extra discount, because they know you are buying more insurance than you technically need or will get (because of the whole tax thing).

It’s a great strategy if people take salary.

If you have any cases, I’d recommend you engage your insurance partners. If that happens to be me, well, then engage me.

Happy Saturday Friends,

Andrew