LTC and Life Insurance in Canada

 

Table of Contents

 

Care Around the World

1

Inverse Care / Impoverishing Care

1

Fragmented and Fragmenting Care

2

Unsafe Care / Misdirected Care

2

Primary Health Care

3

Secondary Health Care / Tertiary Health Care

4

The Canadian Healthcare System

5

Critical Illness Insurance

6

Characteristics of Critical Illness Insurance (Critical Illnesses)

7

Considering Critical Illness Insurance / Achieving Quality Health Care

8

Exclusions in Coverage

9

Long-Term Care

10

Long-Term Care in Canada

11

CLHIA Report Updated July 2014

13

Accessibility

14

Intergenerational Fairness / Quality Services / Sustainability

15

Citizens Must Become Responsible

17

Entering Old Age with Dignity

18

Long-Term Care Service Capacity

19

Adequate Personnel

21

Analyzing the Risk

22

CLHIA Funding Recommendations

24

Assisted Living Facilities

25

Fear of Institutionalization / Changing Times

27

A Health Issue / Population Growth

28

Frailty / Changes in Health / Financial Depletion / Affording the Cost of Insurance

29

Making Plans for the Future / All Ethnic, Religious, and Racial Segments are Affected

30

Judging Need Based on Family History / ADLs

31

Making a Logical Assessment / Case Mangers / Personal Control

32

Premiums must be Affordable for the Duration / Improved Protection

33

Benefit Qualification / Women and Long-Term Care / Finding Caregivers

34

The Spouse / Children as Caregivers / Paid Caregivers

35

Adult Day Care and Adult Day Health Care

36

Community-Based Care / Respite Care / Assisted Living Facilities

36

Long-Term Care Insurance

40

Policy Terms / Participants

41

Long-Term Care Insurance Premiums / Premium Due Dates

41

Withdrawable Premium Fund / Policy Reinstatement / Premium Guarantees / Premium Waivers

42

Return of Premium upon Death / Long-Term Care Policy Benefits / Time Limits

43

Benefit Amounts / Cancelation Guarantees / Policy Ending Date / Policy Incontestability

44

Policy Effective Dates / Dependency Determination under the Policy

45

Defining Activities of Daily Living (ADL)

46

Policy Exclusions and Limitations

47

Inflation Protection / Filing a Long-Term Care Claim

48

Continuous Versus Individual Claims / Considering Need

50

Life Insurance in Canada / Insurance Agents

51

Life Insurance Contracts (terms)

52

Life’s a Gamble / Defining Risk

54

Comfort Level

55

Insurance Risks, Perils & Hazards / Chance of Loss

56

Morale & Moral Hazards / Law of Large Numbers

57

Types of Risk

58

Investment Risk

59

Issuance

60

Insurable Interest in Life Insurance

61

A Fairytale Case Study

62

Stranger Originated Life Insurance (STOLI)

63

Charitable Use of STOLIs

66

Life & Viatical Settlement Agreements / Definitions

68

Understanding the Viatical Product / How do Viatical Settlements Work?

70

Purchasing Partial Policies / Viatical Participant Confidentiality

71

Paying the Viator / Buyer’s Remorse

71

Following Payment for the Life Policy / Checking Health Status through Physicians

72

Extra Policy Benefits / Other Available Options

72

What Every Policy Owner Needs to be Aware of

73

Viatical Settlement Development

73

Medical Underwriting

74

Insurance Underwriting

75

How Consumers View Them

76

Policy Ownership Transfer / Policy Premium Payments

78

Outstanding Policy Loans

80

Additional Investment Fees

81

Escrow Trust Accounts / Viatical & Life Settlement Disclosures

82

Personal Information Protection & Electronic Documents Act

83

Insurance Policy Effective Dates

84

Material Facts / Beneficiary Designations in General

85

Life Insurance / Changing Social Times

88

Two Basic Insurance Terms: Premium & Peril

89

Betting Against the Insurance Company

89

Good Financial Plans Involve Life Insurance Contracts / Intent

90

Estate Planning: Procedures, Not Products

91

Providing for Others Through Planning

92

Using Discipline to Achieve Security / Clarifying Client Objectives / The Need for Broader Knowledge

93

Basic Goals of Life Insurance / Life Insurance Trusts

94

Trust Beneficiaries / Kinds of Life Insurance / An Estate Planning Tool

95

Term Insurance: No Money, Just Coverage

96

Whole Life Insurance: the Granddaddy

96

Endowment Insurance Policies: Forced Savings

97

Universal Life: Separating Expenses

97

Variable Universal Life: Few Guarantees

98

Survivorship Life: Insuring Two or More People

100

Single Premium Whole Life: One Payment

100

Buy-Sell Agreements

101

Annuities (defined) / Annuity Terminology

102

General Policy Provisions

106

Planning for Increased Life Spans

107

Longevity Risk / Variable Annuities (Segregated Funds)

108

Maturity Guarantees / Death Benefit Guarantees / Performance of Funds is not Guaranteed

109

Types of Contracts

110

Registered Retirement Savings Plans (RRSP) / Section 146 of the Income Tax Act

111

Non-Registered Annuities / Prescribed Treatment/Non-Prescribed Treatment

112

RRSP Types / Contributions

114

Spousal RRSP

115

Taxation of Deferred Annuities / The Decision to Buy

116

Life Income Funds / Immediate Annuities

117

Payout Options

118

Single Life Payout Option

119

Joint-and-Survivor Payout Option / Installment Refund Life Payout Option / Variable Annuity Payout Option

120

Term Certain Payout Option / Other Products

121

Dollar Cost Averaging / Annuity Beneficiary Designations

122

Annuity Contingent Beneficiaries

123

The Insurance Contract

124

Deposits / Surrender Penalties

125

Retirement Savings Plan (RSP) Endorsements / Switches

126

Investment Options

127

Product Suitability / Saving Adequately / The Reason for the Goal (the reward)

128

Determining Goals

131

Basic Product Information Requirements / Determining Product Suitability

133

Product Replacement (twisting, churning)

135

Identifying Suitability Issues

136

It is Not a Liquidity Issue but Rather a Suitability Issue

137

A Comprehensive Financial Plan

138

Suitability in the Retail Sale of Financial Products (report)

140

Determining Suitability According to the Report

145

Annuity Surrender Values and Penalties / Financially Sound Insurers

146

Anti-Money Laundering

147

Abbreviations / Client Due Diligence

149

Determining Identification in a Face-to-Face Interview

150

Identification of New Business Clients / Confirming the Client’s Business

151

Collection of Beneficial Owner & Director Information

151

Not-for-Profit Organizations / Exceptions to Requirements for Business Clients

152

Third-Party Determination / Politically Exposed Foreign Person Requirement

153

Retention of Client Records / Suspicious Transactions / “Red Flag” Indicators

154

Tipping Off / Large Cash Transaction Reporting

155

The Proceeds of Crime & Terrorist Financing Administration Monetary Penalties Regulations

155

Terrorism Produces Insurer Risk

155

Proceeds of Crime and Terrorism Financing Act / Object of the Act

157

Company Objectives / Policy Application / Restricted Businesses and Entities / AML Education

159

A Change in Thinking

160

Product Identification: 1. Single Premium Life Insurance Contracts

161

2. Early Policy Redemption / 3. Claim Fraud / 4. Cash Premium Payments

162

5. “Free Look” Periods on Newly Issued Policies

163

6. Collusion of Customer Intermediary and/or Insurer Employee / 7. Third-Party Premium Payments

163

8. Risks Involved in International Transactions

163

9. Fraudulent Customers, Insurers, or Reinsurance Companies

164

Money Laundering Indicators not Unique to Insurance Products

164

Characteristics of the Money Launderer

165

 

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, WA  98328

(253) 846-1155

Email:  mail@uiece.com