Long term care services address the health, social and personal care needs of individuals who have lost the ability to care for themselves. While a certain degree of public support is available, government programs are not comprehensive and long term care services can be costly. Long term care insurance (LTCI) helps to pay for the care of services that other plans don’t provide, or works to bridge the gap between what is provided and the extra care or services you might prefer. LTCI helps to cover the costs, meaning: You have more choices around the kind of care and amount of care you'll receive. Either professionals or family members can provide care. Your savings and investments can be preserved. There are many misconceptions about what the government provides and pays for, and what extended ...
Take a few minutes out of your busy day to really listen. Our own Deborah Wood introduces you to one of her longest standing, and most grateful clients.
www.SmallBizAdvisor.ca, brought to you by the editorial teams at Benefits Canada and the Advisor Group, goes live today. This one-stop destination for advisors with small businesses or entrepreneurs as clients addresses important issues surrounding the group benefits and retirement industries from the small business perspective. Featuring regular news articles and in-depth features on relevant small business topics written by Canada’s top experts in the group benefits and retirement markets, www.SmallBizAdvisor.ca is poised to become the go-to resource for Canadian small business advisors. Creative Planning Financial Group's president, Rob Franklin, and Darren Hanser provided www.SmallBizAdvisor.ca with two articles which can be found by following these links: Article 1: Introduction To Taxation Of Group Benefits Article 2: A Benefits Plan Or Larger Salary? Visit www.SmallBizAdvisor.ca today to read these and other stories.
We are constantly receiving information from the insurance and financial industry. We are going to now post a weekly summary of pages we feel will impact our clients. These may include updates from our partners at the insurance carriers, updates on tax related issues from industry associations, or just interesting thoughts from our peers. Here are some from the past week: 1. The results from the latest CPP Actuarial Report concludes that the current legislated contribution rate is sufficient to meet the CPP's future obligations: 25th Canada Pension Plan Actuarial Report 2. Women, as main caregivers, take a hit in retirement. This is a great article outlining the experience of when Dr. Amy D'Aprix, coincidently a gerontological social worker, spent a decade caring for both of her parents. Globe and Mail Article - "Women And Retirement" 3. In a special to the Globe And Mail, Preet Banerjee discusses the ...
Of course it is! Often quoted pension actuary, Malcolm Hamilton, finds in the Nov 27, 2009 Retirement Savings Research Program that for a 65 year old opposite-sex couple: at least one will live to approximately age 90; approximately 10% of couples will have one partner that lives 8 years beyond the normal life expectancy; approximately 1% of couples will have one survivor who lives 14 years beyond the normal life expectancy. That's impressive! What does this mean to you? Couples entering retirement at age 65 can expect to have at least one partner still receiving income at age 90. That's 25 years of income that needs to be provided by all sources. This could be from the Canada Pension Plan, Old Age Security, RRSP/RRIF income, private pensions and other investment assets. In partnership with Investor ...
This is a great question as life insurance provides protection where other asset classes may not. The right to designate a beneficiary under a life insurance contract must be taken seriously, as there are different rights and protection available depending on who is named, and how they are named. Beneficiary Designations: Irrevocable: Where a beneficiary is designated as “irrevocable” the owner has in a way given control over to the beneficiary. The owner may not surrender that contract or make any other changes that would impact the potential benefits of the policy without the consent of the irrevocable beneficiary. A creditor would not be permitted to force the owner to surrender the contract during the life of the policy. At death, the death benefit would be paid directly to the irrevocable beneficiary so that the proceeds would not be subject to the claims of creditors of the owner of the policy. Revocable: Where ...
CLU Comment - May/Jun 2010 <-------- Click to open The CLU Comment is a publication distributed by CLU Institute®. The most recent issue (May/June 2010) outlines what is taxable in the event your life insurance policy is “disposed of”. Also there are recent proposals that may alter the way life insurance policies are valued when donated to a charity. Both of these topics and more are discussed in this issue. If you have questions or comments about the material provided, please call our office. We look forward to speaking with you soon. Background Information: DISPOSITION OF A LIFE INSURANCE POLICY Income Tax Act references: Subsection 148(1) – amounts included in computing policyholder’s income [on disposition of a life insurance policy] Section 54 and subparagraph 39(1)(a)(iii) – [exclusion of a life policy (other than a segregated fund contract) from the definition of capital property] Paragraph 56(1)(j) – life insurance policy proceeds [inclusion in regular income] Subsection 148(4)– income from ...
Based on the traffic reports on the 400 every week, there are a great number of families preparing for trips up to the family cottage. Over the past few months, we have been getting into conversations about cottages, and they have now expanded to include much more than what was on the barbecue this past weekend (which was delicious). Whether you own a cottage, or will eventually inherit one, an open dialogue is important. There’s no argument here – the following problems are all nice to have! There are many things to consider in any plan that involves family and different generations, but perhaps the most difficult is just starting the conversation. This is a very awkward subject for some families, where Children may feel especially uneasy opening up this subject with their parents, but it’s in everyone’s best interest to deal with any issues early on. In fact, many parents find ...
When you are approved for a mortgage, your lender is obligated to offer you mortgage insurance. That may seem convenient and honourable, but… before you say yes to mortgage insurance, you should know what buying creditor mortgage insurance really means. Here are some key areas to consider: What’s the difference? I can save so much money by using the bank – AND I don’t have to give blood! Individual insurance plans require you qualify medically BEFORE you can receive your policy. This means that the insurance company is fully aware and comfortable with insuring you. If you have creditor insurance and need to claim for an illness or death, the bank will NOW start to investigate your health history… and have the freedom to deny a claim if you incorrectly answered one of their questions. If you file a successful claim, the BANK is the automatic beneficiary of your certificate. By using Private / ...
Did you know that 1 in 3 people, on average, will be disabled for 90 days or longer at least once before age 65. The average length of a disability that lasts over 90 days is 2.9 years. What would that mean to your income and lifestyle? Here are a few questions we get from clients, as well as questions we want our clients to be asking of us. Who needs Disability Insurance? Most people need some kind of coverage, which will replace most of their usual income in case they cannot work due to disability. When people without disability insurance become disabled, income stops or is reduced, and savings are drained. Some exceptions are those with high levels of investment income, students, or individuals whose spouse continues to provide enough income to cover all existing, and any new, expenses. Do I need both ...
Critical illness insurance is a form of financial protection that provides a lump-sum payment in the event of the diagnosis and survival of a serious illness. Here are a few questions we hear on a regular basis: I’m in great health - Why Do I need Critical Illness Coverage? There are several factors to consider when making the decision to purchase Critical Illness insurance: Anyone can become critically ill - and survival is more likely than ever because of advancements in medical science Not all medication and surgical procedures are covered by government health plans There may be gaps in employer-sponsored group coverage Most Canadians are not prepared for the impact a critical illness would have on their finances There may be tax consequences associated with withdrawing funds from retirement savings to fund recovery How many Canadians actually get sick each year? Every year in Canada, ...
