Dave Minor, vice president, TD Insurance says insurance can play an integral role in mitigating the risks associated with this shifting lifecycle. “People are living longer, supporting adult children and aging parents, and are more active later in life than previous generations — and that means they need more money to sustain their quality of life,” says Minor. “That’s why it’s so important for Canadians to speak with their insurance provider and develop a financial plan that includes the right insurance to safeguard their income and assets.” Thanks to medical advancements, more people are surviving critical illnesses and living longer; the average life expectancy is now 78 for men and 83 for women. As a result, Minor says critical illness insurance is becoming more important to protect against the increasing risk of critical illness disrupting a family’s ability to earn income and save for the future, especially during prime income earning years. With many families are choosing to have children later in life, the number of women giving birth in their 40s has more than doubled in the last few decades. “Many young and healthy Canadians put off buying life insurance until they start planning for a family. But the reality is, even if you’re postponing having children until later in life, sooner rather than later is the best time to purchase a policy. You will generally be rewarded with better rates at younger ages and reduce the risk of being declined for coverage due to health issues,” says Minor. High youth unemployment (currently at 14.7%, almost double the national rate) and increasing post-secondary education costs means many young people are relying financially on their parents until their late 20s. This can translate into higher-than-expected household expenses, including additional life insurance coverage to mitigate the loss of, or a disruption in, household income, and even an increase in home insurance coverage that may be needed for the extra valuables in the home. The average debt level of Canadian households is now equivalent to around 150% of personal disposable income. What’s more, a report by TD Economics found that over the past decade, while average debt-loads in Canada increased at twice the pace of income, the debt-loads of those 65 years and older grew at three times the rate and contributed as much as half to the overall debt growth7. “Life insurance is frequently used to cover debts and protect the estate assets in case of death, sometimes even paid for by the beneficiaries to help manage the cash flow of the insured,” says Minor. “Term insurance is a good option for this objective as it is generally inexpensive and provides a pre-determined pay out to the designated beneficiaries.” “Everyone should review their insurance needs, because it will help them plan for their future well past their prime earning years” says Minor. “Having a financial plan that includes the right insurance coverage will provide them with financial support and protect them from unexpected events. CLHIA shoots down Covid-19 vaccine rumours IE Staff Keywords Critical illness insurance, Life insurance Share this article and your comments with peers on social media Facebook LinkedIn Twitter Canadians are working into retirement, postponing having children, and living longer, and this has implications not only on personal finances and retirement savings, but on insurance needs, too. According to a recent report by Toronto-Dominion Bank, the average age Canadians expect to retire is 61. With average life expectancy now at 80 years old, Canadians planning to retire at that age need to be prepared to save at least two decades worth of income to support themselves during retirement. Universal life policies can’t be used for unlimited deposits, appeal court rules Canada Life offers customizable term insurance Related news
James Langton Share this article and your comments with peers on social media Keywords Investor protectionCompanies Autorité des marchés financiers Facebook LinkedIn Twitter OSC finalizes DSC ban Related news The Autorité des marchés financiers (AMF) is warning investors about an unauthorized firm soliciting derivatives market trades. The AMF said Tuesday that a firm called Best Commodity Options, which appears to be based in Panama and is not authorized to operate in Quebec, is making solicitations by email and telephone to invest in the derivatives market. It reports that at least one Quebecker was recently solicited by a person named Gary Wallace, on behalf of the firm, using high-pressure sales tactics. Retail trading surge on regulators’ radar, Vingoe says NASAA approves model act for establishing restitution funds Neither Wallace, nor Best Commodity Options, is registered with the AMF, the regulator warns. And, it says, since they are not registered, these solicitations targeting Québec investors may violate derivatives laws. The AMF also reminds investors to exercise caution when sharing personal information on the Web and social media sites.
S&P/TSX composite hits highest close since March on strength of financials sector Share this article and your comments with peers on social media Toronto stock market dips on weakness in the energy and financials sectors Related news The central bank makes its next announcement on interest rates on Wednesday. No one expects the bank to change its key rate from one per cent but it could make subtle changes in the language of its statement about its interest rate intentions. At its last meeting in late January, the bank indicated that interest rate hikes are likely further off than previously thought and lowered its economic estimates. That was enough to push the loonie below parity with the greenback, where it has stayed ever since, falling to an eight-month low. And economists don’t expect it to rise above parity any time soon. “We continue to look for the currency to work its way back toward parity eventually but I have no problems seeing it drop as low as 95 cents US in the next short while,” said Doug Porter, chief economist at BMO Capital Markets. “There are a lot of negatives suddenly stacked up against the currency short term, which could persist for awhile yet.” The central bank shaved three-tenths of a point off its projections for growth for both 2012 and 2013, to 1.9% and 2.0% respectively. But that could be revised lower, given data released Friday showing fourth quarter growth came in at an annualized rate of 0.6%, with growth actually contracting during December. “I’m not pointing fingers here, it’s just the reality that they have been consistently optimistic and the economy has underperformed steadily and that’s been also true on the inflation front,” added Porter. “I think there is certainly a reasonable argument to be made that they will change the language.” The loonie has fallen by about three US cents since that last meeting, down 0.6 of a cent over the past week. Continued low rates are one reason but the loonie has also fallen amid worries about the strength of the housing sector and the price differential between benchmark Brent crude and Western Canadian Select from the oilsands. Traders have also been concerned about U.S. economic strength in view of automated, across the board U.S. government spending cuts of more than US$85 billion that were triggered Mar. 1. The loonie has also been hit by weak December retail figures, tame inflation data for the end of the year, signs that the current account trade deficit remains at close to record levels and the latest indication of weak economic growth. The other major piece of Canadian economic data comes out Friday, when the February jobs report is released. “And of course the story there is that the Canadian jobs picture ended last year surprisingly strongly, and I think reality caught up with the job market a bit in January when we saw employment drop,” said Porter. “I think there’s a chance we could see another weak report but I think the main story here is that the economy is going to struggle to turn out reasonable job gains through the first half of this year.” Economists anticipate job creation for February to come in at 8,000 after a plunge of 22,000 positions during January, with the jobless rate edging up 0.1 of a point to 7.1%. The U.S. government’s employment report for February also comes out Friday. It is expected that the economy cranked out 155,000 jobs, roughly the same amount as January. Meanwhile, North American stock markets ended last week with minor gains in the wake of better than expected U.S. readings on the manufacturing sector and consumer confidence. The effects from the imposition of the so-called sequester will likely weigh on markets this coming week. It’s a strange situation since the cuts date from an agreement to raise the U.S. government debt limit in the summer of 2011. The program was not meant to be activated. Rather, lawmakers were supposed to come together before the March 1 deadline to agree on a more considered method of cutting government spending. “The impact on sentiment and like consumer confidence and business confidence is going to be greater than the actually financial impact or impact on GDP,” said Norman Raschkowan, North American strategist at Mackenzie Financial Corp. “It has a far greater bearing on sentiment because what it’s going to lead to is people getting laid off for a month, or a couple of weeks, or something. Like government employees not getting a paycheque. There’s a ripple effect.” He says the outcome is likely that it means the economic recovery will continue to be weak. It doesn’t mean the outlook is dire, it just means things will keep muddling along, grinding out those few yards. TSX gets lift from financials, U.S. markets rise to highest since March Malcolm Morrison Keywords Marketwatch Facebook LinkedIn Twitter The Canadian dollar could be under further pressure this week as traders look to see what the Bank of Canada signals about interest rates hikes and how job creation held up during February. Currency and stock markets will also be looking to see how an automated series of steep U.S. government spending cuts is being implemented and what progress Italy is making in forming a new government following inconclusive results from an election last week.
Foresters adds charity benefit to whole life product Share this article and your comments with peers on social media In addition to offering lifetime protection and cash value accumulation, Familylife provides various features that aim to help families plan for every stage of life. This includes built-in children’s term insurance at no additional premium, and the option to take out a loan against the cash surrender value. The product also provides flexibility with respect to dividends: policyholders can opt to use the dividends to purchase additional coverage, reduce premiums or simply receive cash. “We’re delighted to provide a product like Familylife to meet the changing needs of Canadian families,” said Sharon Giffen, president of Foresters Canada and president and CEO of Foresters Life Insurance Company. “We are committed to providing flexible products that answer the needs of families and are valued by our business partners.” Additional features of Familylife include a quit-smoking incentive plan, and access to Advance Medical, Inc.’s Expert Medical Opinion Program. Also, if a client forgets to make a premium payment, the Familylife Automatic Premium Loan feature will pay their premium from the available cash value provided it is sufficient to cover that premium amount. Policyholders and their immediate family members will also gain access to Foresters Member Benefits, which include competitive academic scholarships, financial counseling and discounted legal services. The new product replaces Foresters’ Advantage Series Whole Life product, which is no longer available for new sales, the company said. Megan Harman Related news Equitable Bank unveils second CSV line of credit Manulife introduces new whole life product and AI underwriting algorithm Keywords Whole life insuranceCompanies Foresters Life Insurance Co. Foresters Life Insurance Company announced on Monday that it has launched a new participating whole life insurance product, and is withdrawing one of its existing participating whole life products from the market. The new product, called Familylife, is designed to provide families with cost-effective permanent insurance options tailored to their budget and unique protection needs. Facebook LinkedIn Twitter