Suitability of LTC, Life Insurance & Annuities in Canada
Table of Contents
|
Chapter 1: Care Around the World |
1 |
|
Inverse Care |
1 |
|
Impoverishing Care |
1 |
|
Fragmented Care |
2 |
|
Unsafe Care |
2 |
|
Conditions Contributing to Health Care Costs |
2 |
|
Universal Health Care |
2 |
|
Primary Health Care |
3 |
|
Secondary Health Care |
4 |
|
Tertiary Health Care |
4 |
|
The Canadian Healthcare System |
6 |
|
Critical Illness Insurance |
12 |
|
Characteristics of Critical Illness Insurance (Critical Illnesses) |
13 |
|
Should Individuals Buy Critical Illness Insurance? |
14 |
|
Achieving Quality Health Care |
15 |
|
Long-Term Care |
19 |
|
Long-Term Care Reform in Canada |
22 |
|
Fixing Long-Term Care Act, 2021 |
22 |
|
Visitor Policy |
24 |
|
Continuous Quality Improvement |
25 |
|
Air Conditioning |
26 |
|
Palliative Care Philosophy |
26 |
|
Infection Prevention and Control |
26 |
|
Calculating Direct Care Targets |
27 |
|
Medical Directors |
27 |
|
Staffing |
27 |
|
Medical Accessibility |
27 |
|
Sustainability |
27 |
|
A Citizen’s Responsibility When Aging |
28 |
|
Entering Old Age with Dignity |
30 |
|
Too Few Trained Professionals in the LTC Industry |
31 |
|
Meeting the Challenge |
33 |
|
Informal Caregiver |
34 |
|
Determining Personal Long-Term Care Risk |
34 |
|
CLHIA Funding Recommendations |
37 |
|
Fear of Institutionalization |
38 |
|
Today’s Realities |
38 |
|
Changing Populations and Changing Family Rolls |
40 |
|
Late Life Frailty |
40 |
|
To Recap |
41 |
|
Changes in Health Can Result in Financial Depletion |
41 |
|
Affording the Cost of Insurance |
41 |
|
Preparing for Future Costs |
42 |
|
All Ethnic, Religious, and Racial Segments are Affected |
42 |
|
Making Decisions Based on Genetics and Family History |
43 |
|
ADL: Activities of Daily Living |
43 |
|
Making a Logical Assessment |
44 |
|
Case Managers |
44 |
|
Insurance Affordability |
45 |
|
When There is no Insurance Policy in Effect |
46 |
|
Policy Application |
46 |
|
Policy Contracts Have Improved Over the Years |
47 |
|
Qualifying for Long-Term Care Benefits under Policy Terms |
49 |
|
Women and Long-Term Care |
50 |
|
Finding Caregivers |
50 |
|
Children as Caregivers |
51 |
|
Paid Caregivers |
52 |
|
Adult Day Care and Adult Day Health (or Medical) Care |
52 |
|
Community-Based Care |
53 |
|
Respite Care |
54 |
|
Assisted Living Facilities |
55 |
|
Assisted Living National Program Guidelines 2019 to 2020 |
60 |
|
Introduction |
60 |
|
Objective |
61 |
|
Expected outcomes |
61 |
|
Funding recipients |
61 |
|
Program recipients, clients, and individuals |
63 |
|
Activities |
70 |
|
Expenditures |
71 |
|
Funding |
74 |
|
Reporting requirements and monitoring and oversight activities |
74 |
|
Personal information |
75 |
|
Accountability |
75 |
|
Official languages |
75 |
|
Definitions |
75 |
|
Contact information |
76 |
|
Related links |
76 |
|
Summary of federal classification system for institutional care |
76 |
|
Locating Assisted Living Facilities |
78 |
|
Long-Term Care Insurance Policies |
79 |
|
Policy Terms |
83 |
|
Participants |
83 |
|
Premium Due Dates |
84 |
|
Automatic Withdrawable Premium Fund |
84 |
|
Policy Reinstatement |
84 |
|
Premium Guarantees |
85 |
|
Premium Waivers |
85 |
|
Return of Premium upon Death |
85 |
|
Long-Term Care Policy Benefits |
86 |
|
Time Limits |
86 |
|
Benefit Amounts |
86 |
|
Cancelation Guarantees |
86 |
|
Policy Ending Date |
86 |
|
Policy Incontestability |
87 |
|
Policy Effective Dates |
87 |
|
Dependency Determination under the Policy |
88 |
|
Defining Activities of Daily Living |
89 |
|
Bathing |
89 |
|
Continence |
89 |
|
Dressing |
89 |
|
Feeding |
89 |
|
Toileting |
89 |
|
Transferring |
89 |
|
Policy Exclusions and Limitations |
90 |
|
Inflation Protection |
91 |
|
Filing a Long-Term Care Claim |
91 |
|
Continuous Versus Individual Claims |
93 |
|
Considering Need |
93 |
|
|
|
|
Chapter 2: Life Insurance in Canada |
95 |
|
Insurance Agents |
95 |
|
Life Insurance Contracts (terms) |
96 |
|
Life’s a Gamble |
97 |
|
Defining Risk |
98 |
|
Comfort Level |
99 |
|
Insurance Risks, Perils & Hazards |
100 |
|
Chance of Loss |
100 |
|
Morale & Moral Hazards |
101 |
|
Law of Large Numbers |
101 |
|
Types of Risk |
102 |
|
Pure & Speculative Risks |
103 |
|
Investment Risk |
104 |
|
Issuance |
104 |
|
Insurable Interest in Life Insurance |
106 |
|
A Fairytale Case Study |
107 |
|
Stranger Originated Life Insurance (STOLI) |
108 |
|
Life & Viatical Settlement Agreements |
110 |
|
Definitions |
110 |
|
Understanding the Viatical Product |
112 |
|
How do Viatical Settlements Work? |
113 |
|
Purchasing Partial Policies |
113 |
|
Viatical Participant Confidentiality |
113 |
|
Paying the Viator |
113 |
|
Buyer’s Remorse |
114 |
|
Following Payment for the Life Policy |
114 |
|
Checking Health Status through Physicians |
114 |
|
Extra Policy Benefits |
114 |
|
Other Available Options |
115 |
|
Viatical Settlement Development |
115 |
|
Medical Underwriting |
116 |
|
Insurance Underwriting |
117 |
|
How Consumers View Them |
118 |
|
Policy Ownership Transfer |
119 |
|
Policy Premium Payments |
120 |
|
Outstanding Policy Loans |
122 |
|
Additional Investment Fees |
123 |
|
Escrow Trust Accounts |
124 |
|
Personal Information Protection & Electronic Documents Act |
124 |
|
Insurance Policy Effective Dates |
125 |
|
Material Facts |
126 |
|
Beneficiary Designations in General |
126 |
|
|
|
|
Life Insurance |
129 |
|
Changing Social Times |
129 |
|
Two Basic Insurance Terms: Premium & Peril |
130 |
|
Winning and Losing the Insurance Gamble |
130 |
|
Determining the Need for Life Insurance |
131 |
|
Estate Planning: Procedures, Not Products |
132 |
|
Providing for Others Through Planning |
133 |
|
Using Discipline to Achieve Security |
134 |
|
Clarifying Client Objectives |
134 |
|
The Need for Broader Knowledge |
134 |
|
Basic Goals of Life Insurance |
135 |
|
Life Insurance Trusts |
135 |
|
Trust Beneficiaries |
136 |
|
Life Insurance is a contract |
136 |
|
An Estate Planning Tool |
137 |
|
Term Insurance is All About the Payout |
137 |
|
Whole Life Insurance: The Granddaddy of Them All |
138 |
|
Endowment Insurance Policies: Forced Savings |
138 |
|
Universal Life: Separating Expenses |
139 |
|
Variable Universal Life: Few Guarantees |
139 |
|
Survivorship Life: Insuring Two or More People |
141 |
|
Single Premium Whole Life: One Payment |
142 |
|
Buy-Sell Agreements |
142 |
|
|
|
|
Chapter 3: Annuities in Canada |
144 |
|
Annuity Terminology |
144 |
|
General Policy Provisions |
148 |
|
Planning for Increased Life Spans |
149 |
|
Longevity Risk |
150 |
|
Variable Annuities (Segregated Funds) |
150 |
|
Maturity Guarantees |
151 |
|
Death Benefit Guarantees |
151 |
|
Performance of Funds is not Guaranteed |
151 |
|
Types of Contracts |
152 |
|
Registered Retirement Savings Plans (RRSP) |
153 |
|
Section 146 of the Income Tax Act |
153 |
|
Non-Registered Annuities |
154 |
|
Prescribed Treatment/Non-Prescribed Treatment |
155 |
|
RRSP Types |
156 |
|
Contributions |
157 |
|
Spousal RRSP / Taxation of Deferred Annuities |
158 |
|
Taxation of Deferred Annuities |
158 |
|
The Decision to Buy |
158 |
|
Life Income Funds |
159 |
|
Immediate Annuities |
160 |
|
Payout Options |
160 |
|
Single Life Payout Option |
161 |
|
Joint-and-Survivor Payout Option |
162 |
|
Installment Refund Life Payout Option |
162 |
|
Variable Annuity Payout Option |
163 |
|
Term Certain Payout Option |
163 |
|
Other Products |
163 |
|
Dollar Cost Averaging |
164 |
|
Annuity Beneficiary Designations |
164 |
|
Annuity Contingent Beneficiaries |
165 |
|
The Insurance Contract |
166 |
|
Deposits |
167 |
|
Surrender Penalties |
167 |
|
Retirement Savings Plan (RSP) Endorsements |
168 |
|
Switches |
169 |
|
Investment Options |
169 |
|
Product Suitability |
170 |
|
Saving Adequately |
170 |
|
The Reason for the Goal (the reward) |
171 |
|
Determining Goals |
174 |
|
Basic Product Information Requirements |
175 |
|
Determining Product Suitability |
176 |
|
Product Replacement |
178 |
|
Twisting |
178 |
|
Churning |
178 |
|
Identifying Suitability Issues |
179 |
|
It is About Suitability for the Buyer, Not Liquidity |
179 |
|
A Comprehensive Financial Plan |
181 |
|
Suitability in the Retail Sale of Financial Products (report) |
183 |
|
Determining Suitability According to the Report |
188 |
|
Annuity Surrender Values and Penalties |
189 |
|
Financially Sound Insurers |
190 |
|
|
|
|
Chapter 4: Anti-Money Laundering |
191 |
|
Abbreviations |
192 |
|
Client Due Diligence |
193 |
|
Determining Identification in a Face-to-Face Interview |
193 |
|
Identification of New Business Clients |
194 |
|
Confirming the Client’s Business |
195 |
|
Collection of Beneficial Owner & Director Information |
195 |
|
Not-for-Profit Organizations |
195 |
|
Exceptions to Requirements for Business Clients |
196 |
|
Third-Party Determination |
197 |
|
Politically Exposed Foreign Person Requirement |
197 |
|
Retention of Client Records |
198 |
|
Suspicious Transactions |
198 |
|
“Red Flag” Indicators |
198 |
|
Tipping Off |
199 |
|
Large Cash Transaction Reporting |
199 |
|
The Proceeds of Crime & Terrorist Financing Administration Monetary Penalties Regulations |
199 |
|
Terrorism Produces Insurer Risk |
199 |
|
FATF |
200 |
|
Proceeds of Crime and Terrorism Financing Act |
201 |
|
Objective of the Act |
201 |
|
Know-Your-Client (KYC) |
203 |
|
Prevention |
208 |
|
Policy Application |
208 |
|
Restricted Businesses and Entities |
208 |
|
Education is Always the Best Defense |
209 |
|
A Change in Thinking |
209 |
|
Product Identification |
210 |
|
Typologies |
211 |
|
1. Single Premium Life Insurance Contracts |
211 |
|
2. Early Policy Redemption |
211 |
|
3. Claim Fraud |
212 |
|
4. Cash Premium Payments |
212 |
|
5. “Free Look” Periods on Newly Issued Policies |
212 |
|
6. Collusion of Customer Intermediary and/or Insurer Employee |
213 |
|
7. Third-Party Premium Payments |
213 |
|
8. Risks Involved in International Transactions |
213 |
|
9. Fraudulent Customers, Insurers, or Reinsurance Companies |
213 |
|
Money Laundering Indicators Not Unique to Insurance Products |
214 |
|
Cash Transactions |
214 |
|
Use of False Addresses and Other Information |
214 |
|
Overseas Business from Higher Risk Jurisdictions |
214 |
|
Characteristics of the Money Launderer |
214 |
United Insurance Educators, Inc.