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
Universal Health 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 / 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 / Benefit Amounts	43
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 / Issuance	59
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	67
Definitions	68
Understanding the Viatical Product	69
How do Viatical Settlements Work?	70
Purchasing Partial Policies / Viatical Participant Confidentiality	70
Paying the Viator / Buyer’s Remorse / Following Payment for the Life Policy	71
Checking Health Status through Physicians	72
Extra Policy Benefits / Other Available Options	72
What Every Policy Owner Needs to be Aware of	72
Viatical Settlement Development	73
Medical Underwriting	74
Insurance Underwriting	74
How Consumers View Them	76
Policy Ownership Transfer	77
Policy Premium Payments	78
Outstanding Policy Loans	80
Additional Investment Fees	80
Escrow Trust Accounts	81
Viatical & Life Settlement Disclosures	82
Personal Information Protection & Electronic Documents Act	83
Insurance Policy Effective Dates / Material Facts	84
Beneficiary Designations in General	85
Life Insurance	87
Changing Social Times / Two Basic Insurance Terms: Premium & Peril	88
Betting Against the Insurance Company / Good Financial Plans Involve Life Insurance Contracts	89
The Intent	90
Estate Planning: Procedures, Not Products	91
Providing for Others Through Planning / Using Discipline to Achieve Security	92
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	99
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	106
Longevity Risk	107
Variable Annuities (Segregated Funds) / Maturity Guarantees	108
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	110
Non-Registered Annuities	111
Prescribed Treatment/Non-Prescribed Treatment	112
RRSP Types / Contributions	114
Spousal RRSP / Taxation of Deferred Annuities / The Decision to Buy	115
Life Income Funds	116
Immediate Annuities / Payout Options	117
Single Life Payout Option	118
Joint-and-Survivor Payout Option / Installment Refund Life Payout Option	119
Variable Annuity Payout Option / Term Certain Payout Option / Other Products	120
Dollar Cost Averaging / Annuity Beneficiary Designations	121
Annuity Contingent Beneficiaries	122
The Insurance Contract	123
Deposits / Surrender Penalties	124
Retirement Savings Plan (RSP) Endorsements / Switches	125
Investment Options	126
Product Suitability / Saving Adequately / The Reason for the Goal (the reward)	127
Determining Goals	130
Basic Product Information Requirements / Determining Product Suitability	132
Product Replacement (twisting, churning)	134
Identifying Suitability Issues	135
It is Not a Liquidity Issue but Rather a Suitability Issue	136
A Comprehensive Financial Plan	137
Suitability in the Retail Sale of Financial Products (report)	139
Determining Suitability According to the Report	144
Annuity Surrender Values and Penalties / Financially Sound Insurers	145
Anti-Money Laundering	146
Abbreviations / Client Due Diligence	147
Determining Identification in a Face-to-Face Interview	149
Identification of New Business Clients / Confirming the Client’s Business	150
Collection of Beneficial Owner & Director Information	150
Not-for-Profit Organizations / Exceptions to Requirements for Business Clients	151
Third-Party Determination / Politically Exposed Foreign Person Requirement	152
Retention of Client Records / Suspicious Transactions / “Red Flag” Indicators / Tipping Off	153
Large Cash Transaction Reporting	154
The Proceeds of Crime & Terrorist Financing Administration Monetary Penalties Regulations	154
Terrorism Produces Insurer Risk	154
Proceeds of Crime and Terrorism Financing Act / Object of the Act	156
Company Objectives / Policy Application / Restricted Businesses and Entities / AML Education	158
A Change in Thinking	159
Product Identification: 1. Single Premium Life Insurance Contracts	160
2. Early Policy Redemption / 3. Claim Fraud / 4. Cash Premium Payments	161
5. “Free Look” Periods on Newly Issued Policies	162
6. Collusion of Customer Intermediary and/or Insurer Employee / 7. Third-Party Premium Payments	162
8. Risks Involved in International Transactions	163
9. Fraudulent Customers, Insurers, or Reinsurance Companies	163
Money Laundering Indicators not Unique to Insurance Products	163
Characteristics of the Money Launderer	164

Thank you,

United Insurance Educators, Inc.