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.