The private insurance dam has sprung another small leak with a new insurance product covering “medical administration costs”, Canada Free Press reported.
The website writes about a family doctor selling his own private insurance product.
The article recalls that Ontarians can purchase insurance to cover their doctor’s notes stating that they are too ill to attend work because they are waiting on a list to get treatment.
The doctor selling his own insurance product lists 23 administrative services for which he charges fees. These range from $11.72 for telephone prescription to $150 for the filling out of forms for a physical required for a driver’s license.
Long-term care insurance is used to help the insured cover the cost of care when they are no longer able to care for themselves and become functionally dependent. The cost of care can be significant. We've put together a table with typical home services and their costs in Ontario. In our latest insurance tips article you can also read Lorne's comments on costs of long-term care.
Manulife term products have a value-added option known as combined coverage.
Combined coverage offers two death benefits under a single policy, resulting in one policy fee and a 3% discount – terrific savings. In fact, Manulife combined life coverage often costs less than its competitors’ joint first-to-die plans.
If one of the insureds dies under a joint first-to-die policy, the surviving insured would have to apply for new coverage. At his or her attained age, this would translate into a higher premium. Under a combined plan, however, the surviving spouse automatically continues the coverage according to his or her original age at the time of last renewal.
The one caveat: the life face amounts for both insureds must be identical under a combined coverage plan.
Below is a cost comparison for Manulife combined coverage versus some of its competitors’ joint first-to-die plans. Assume $500,000 each of term-10 coverage for a 45-year-old male non-smoker and a 42-year-old female non-smoker (rates as of July 21, 2008).
Manulife combined coverage: $86.43 a month
RBC Insurance joint first-to-die coverage: $81.00 a month
Industrial Alliance joint first-to-die coverage: $88.20 a month
Desjardins joint first-to die coverage: $89.55 month
An exciting day. I woke up to see our 4 day work week on the front page of the city newspaper, The Markham Economist and Sun, with my picture.
It looks like my cover as a normal Markham family guy has been blown. Next thing you know I'll be stopped for impromptu insurance sessions in the local grocer's produce section.
The Markham Economist & Sun got the focus of the 4 day work week absolutely right: the tremendous benefits to employees:
Mr. Marr believes a shorter work week reduces fuel costs, increases family time and improves employee morale.
"In some way, they work more during the four days, since they're being more productive," Mr. Marr said. "Our company is based on salary and bonus pay, so they can actually make more money off the bonus pay by being more focused and working harder."
Mr. Marr came up with the idea because of skyrocketing gas prices.
"The employees choose which day they'd like off, which is usually Friday," Mr. Marr said. "As long as they get their work done, it doesn't matter to me which day they take off.
"I think more companies, sooner or later, will start doing this," he said. "The bigger companies, like IBM, can't do it as easily since they can't really think outside the box. They have more channels to go through, more people to consult with to make a decision like this."
Globe and Mail - Fuel Costs drive
Canadians to park their Cars
Canada's national newspaper, Globe and Mail brings a lengthy report on how companies are combating soaring gas prices. The paper interviewed our Senior Insurance Consultant, Jack Bendahan on his view of our decision to move to a four day work week.
Here's an excerpt from the article:
Life insurance broker Jack Bendahan, for example, has switched to a four-day work week and now parks his Mitsubishi Eclipse convertible at home on Fridays — saving roughly $250 a month on gas.
"There's a lot of driving in this business. I'm all over the place," said Mr. Bendahan, who also co-ordinates his appointments and plans his routes more carefully now to avoid excessive mileage. He has eased up on the gas pedal, as well.
His company, LSM Insurance of Markham, Ont., had given employees the option of compressing their work into a four-day schedule a year ago, "but I only got on board on that three months ago."
Mr. Bendahan is trying to sell his car, which takes premium gas, and is thinking about purchasing a more fuel-efficient Toyota Yaris.
CBC Radio has featured our 4 day work week as a great example of how to combat high fuel costs and save money.
Listen to the whole story!
People in Toronto work long hours and long days. In the face of ever higher gas prices and unstable financial markets, many people are working more days and even longer hours.
Here at LSM Insurance, we have moved to four-day work weeks to combat high gas prices. All the team members welcomed the initiative, saving hundreds of dollars a month in gas costs. CBC Radio has aired our story and we also let the major Canadian newspapers know about our endeavour.
We have been featured for our efforts to help employees reduce commuting, save on fuel costs, reduce pollution and enjoy life more: we have instituted a voluntary 4 day work week. And our staff love it.
CBC radio also produced a story about our four day work week in July. Listen in by pressing the play button below.
Be wary about viaticals, the Toronto Star suggests. In a recent article they write about a Toronto company promoting investments with unusually high returns and tax-free advantages. "Company websites suggest one type of investment would pay an 8 per cent annual dividend, plus an average capital growth of 15 to 20 per cent. Another would pay a higher annual return, as well as a tax-free component of 10.2 per cent. The minimum investment is $10,000," the paper reports.
The investments offered by the New Life Capital Corp. are to life insurance policies of elderly Americans, who sign over their death benefits in return for discounted cash settlements.
Canadians should know the viatical or life settlements industry in the United States has been dogged by controversy, corporate failures, criminality and investor losses. So it is worth reading the entire article, to be found here.
As reported in the June/July 2008 issue of Insurance Journal, ACE Life is offering a new feature to help insured employees navigate their way through cancer treatments. On April 23, 2008 ACE Life announced it had added CAREpath as an option for its Spectrum group critical illness plan. The service assigns those who have been diagnosed with cancer a personal oncology nurse who can answer questions and provide advice before, during, and after treatment.
ACE Life said the plan will be available to groups of 100 or more employees.
Lorne’s Comments:
This product is well positioned to make inroads into the Canadian group insurance market. In the face of constant advances in medical technology and treatments, cancer patients may have a host of questions and concerns. This option helps give patients a sense of control. The cost, assuming 15% commission, is 84 cents per employee per month for groups ranging of 100 to 499 employees and 44 cents per employee for groups of over 500 employees. Hopefully, ACE and other carriers will extend the service to smaller groups.
According to the Canadian Cancer Society, 3,200 Canadians are diagnosed with cancer every week. There will be more than 166,000 new cases in Canada this year with over 73,000 people dying of their disease. These stats are quoted by the Toronto Sun, in a recent article written by Terri Williams.
She maintains that we all know that there is nothing more certain in life than death and taxes. "Life insurance can protect your family from the financial impact of your untimely death, but what happens if you develop a critical illness and you survive? Life insurance is paid on death, not illness," she writes.
I suggest that you read the entire article, it's very informative. You can also visit one of my pages with tips on critical illness insurance.
Desjardins Financial Security's National Health Survey results show that more entrepreneurs should turn off their blackberries and make relaxation a priority this summer for the sake of their physical and mental health.
Entrepreneurs who participated in the survey were asked to rate their current level of financial security, mental and physical health, and their stress level compared to the previous year. Close to 92 per cent said they were financially sound and 77 per cent were in very good physical and mental health. However, when asked to comment on their stress level, 31 per cent said their stress had increased.
For Barb Sawyers, a single mom of two who has run a communication business for more than 15 years, juggling family and client demands are the key sources of her daily stress. "July and December used to be slow months, but not any more. In an electronically-connected, 24/7 world, there are no breaks," Sawyers said.
Standard Life Mutual Funds Ltd., an affiliate of The Standard Life Assurance Company of Canada, announced the launch of the Standard Life India Equity Focus Fund, one of the first funds in Canada to capitalize on opportunities in India's fast growing economy. This fund is part of a wider launch, which also includes a T-Series for ten Standard Life existing funds, as well as the two new Portrait Portfolio fund-of-funds - Dividend Growth & Income Funds and Global Portfolio.
"I believe the new Standard Life funds further address four key concerns expressed by investors; namely diversification, risk management, income-producing solutions and tax efficiency," said Denis Berthiaume, Senior Vice-President, Retail Markets of Standard Life."The launch of these new funds complements Standard Life's ability to provide advisors with an integrated range of products to help them meet the retirement planning needs of their clients.
Grow, Protect, Live and Transfer assets - these are the ultimate objectives of our suite of wealth management products to ensure a better retirement for clients," continued Mr. Berthiaume.
Equitable Life has reprised their 10- and 20-year renewable and convertible term plans to be more competitive in their target markets. They have also discontinued their term conversion credit program. Equitable Life will continue to honour conversion credits for previously issued policies.
Lorne’s comments
Equitable Life has lowered their already competitive rates for most age groups.
Their term plans are also renewable and convertible, up to age 71, to permanent plans without a medical. Preferred rates are available for coverage of $250,000 and up.
On the downside, Equitable Life has discontinued their term conversion credit program on all new term policies. This feature gave a credit to all term policies converted to a permanent policy (i.e., a level rate plan) of up to 25% of the last 12 months of premiums.
Industrial Alliance (IA) has obtained all regulatory authority approvals for the acquisition of National Financial Corporation, the parent company of AEGON Dealer Services Canada Inc., Money Concepts Limited and National Financial Insurance Agency Inc, the company announced in a press release.
This transaction strengthens IA's position as a leader in the distribution of mutual funds in Canada by expanding its diversified network of independent financial advisors. IA's two mutual fund dealerships, Investia Financial Services Inc., and FundEX Investments Inc., have over $17 billion in mutual fund assets under administration and over 2,500 financial advisors, making IA one of the five largest non-bank owned mutual fund dealerships in Canada.
Effective July 7, 2008, the Vital Link Basic plan (three illnesses) will no longer be for sale and the name “Vital Link Plus” will become simply “Vital Link.” The Vital Link definitions for 22 of the 23 insured conditions will reflect new industry benchmark definitions.
Lorne’s comments
This is a good news–bad news scenario. Empire Life’s Vital Link Basic was a stripped-down critical illness plan for cost-conscious consumers. It provided a workable alternative for applicants on tight budgets.
The good news is that Empire Life’s Vital Link Critical Illness plan is still well priced and has a host of built-in features. It is also great to see Empire Life participating in the insurance industry’s push for standardized definitions.
Manulife Securities is the new trade name for a group of companies consisting of a mutual fund dealer, investment dealer and insurance agency operating across Canada, following Manulife’s purchase of Berkshire-TWC Financial Group Inc. “We are operating as a strong national firm that offers new opportunities for independent advisors serving their clients across Canada, committed to delivering the same high-quality service we provided in the past,” explained Manulife Securities’ President Rick Annaert in a press release.
“Manulife Securities is one of Canada’s pre-eminent financial organizations serving more than 1,500 investment professionals, with the backing of Manulife’s overall strength and expertise,” he added. “We have a new look and are focused on leveraging the strengthened market and financial position of the combined companies.”
Independent advisors continue to be the backbone of both Manulife and Berkshire, and that complementary culture has helped to complete a very smooth integration, Mr. Annaert explained. “Manulife and Berkshire both bring a great deal of value to the transaction, including the financial strength, resources and track record to execute the best possible integration. The whole is truly greater than the sum of its parts.”
The Canadian Life and Health Insurance Association (CLHIA) welcomes the Competition Policy Review Panel's report, Compete to Win. "The life and health insurance industry is pleased that the report recognizes that it is vital for Canada to enhance its competitiveness both domestically and internationally," said Frank Swedlove, President of the CLHIA in a press release.
The industry was particularly pleased with the Panel's recommendations for;
The continued reduction in capital, corporate and personal income taxes, as well as ensuring that Canadian companies operate on an equal footing abroad
The federal government providing leadership and working with the provinces in the elimination of all internal trade barriers
The implementation of measures to ensure that Canadian companies have access to a skilled workforce
These recommendations are consistent with those made by the life and health insurance industry in its response to the Competition Policy Review Panel's Consultation Paper, Sharpening Canada's Competitive Edge, the press release concludes.
The Standard Life Assurance Company of Canada introduced a new website to allow group savings and retirement plan members to take ownership of their plans. Offering a so-called "retirement dashboard", the site provides members with an overview of their planning activities, their contributions, account balances, asset allocations and projected retirement assets, every time they log on to the website.
"The new VIP Room for plan members, in my, and our clients' opinions, should position Standard Life very favourably in the market," said Anthony Cardone, Senior Vice-President, Group Savings and Retirement of Standard Life in a press release.
"We have leveraged Standard Life's expertise in group savings and retirement that we have developed over the years and used the latest technology to meet needs that our clients and benefit consultants have expressed. We have not simply updated the existing site; we have created a whole new way for members to manage their retirement assets. And this is only the beginning. We will be introducing new features regularly in the months ahead."
Standard Life's VIP Room is designed to motivate and involve plan members in the retirement planning process and to keep them coming back. It is interactive, flexible and user-friendly.
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