The Chartered Financial Consultant, CH.F.C.® The CH.F.C. designation provides professional financial advisors with advanced knowledge in wealth accumulation and retirement planning for individuals, professionals and business owners. A CH.F.C. professional is qualified to help you with advanced financial planning needs.
The Certified Financial Planner®, CFP® designation is an internationally recognized standard for financial planning. It is granted in Canada by Financial Planning Standards Council (FPSC). A CFP professional is qualified to help you with personal financial planning.
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The CPC is part of an overall framework that includes Practice Standards, Best Practices Applications, and Disciplinary Procedures. * Advocis Members who are authorized to hold the Certified Financial Planner (CFP®) designation are governed in the first instance by the Code of Ethics adopted by the Financial Planners Standards Council. Advocis® and APA® are trademarks of The Financial Advisors Association of Canada. Financial Planners Standards Council awards the CFP® marks in Canada under licence agreement with the CFP® Board of Standards Inc.
The insurance company offers you the following tools:
- choice of insurance products typically 1,10,20yr term, or term to 100
- Choice of reserve investments typically cash at interest deposits or investment funds.
- Set prices on administrative costs and taxes.
- Since reserves can build in the policy without tax to (certain prescribe limits) the insurer will warn you if your investment are about to become taxable allowing you to restrict your payments.
Income: Is insured to an agreed level (usually the limit the coverage to 60-70% of your income at time of setting up the contract).
Monthly debts: Are insured to an agreed maximum based on your estimates at time of contracting. Claims are paid based on actual debts at time of claim. (Mortgages, auto loans, rents, loans, lines of credit)
Business Expenses: Monthly fix costs are insurer to an agreed level usually for one or two years.
What to Consider: Questions to consider how long can you do with out and income? How long do you need the insurance? Do you only want insurance for accidents? Do you any want coverage only when not working? Taxable or Tax Fee income
Typical benefits: if the insured person is diagnosed with one of the covered illnesses or has undergone a covered procedure i.e. Heart Attack; Life Threatening Cancer; Stroke; Paralysis; Kidney Failure; Major Organ Failure on a transplant waiting list, as defined and specified in the policy coverages Coverage available through Creditor and group insurance: usually limited to cancers, stroke and heart attack coverages. Standard issue personal plans: with a broader number of illnesses. Limited Underwriting personal plans: with limited number of illnesses.
Our opinion: Critical Illness is an expensive benefit especially with a return of premium benefit. Return of premium is a valuable tool to justify completion of the protection (It’s not money down the drain if you don’t get sick. Standard Issue offers broader coverage is best but harder to obtain. It may be much the same cost or less than easy issue plans. Limited Underwriting plans are often competitive if used where you or your family history make standard coverage harder or impossible to get to get. Creditor group plans with limited coverages and the bulk of consumer complaint due to post claim underwriting and claim denials should be avoided.
Best uses for Critical Illness insurance: For non -working spouse or potential care giver. (If they can’t help you may have to get in home or facility nursing) Financial shock absorber for extra costs and loss of income for an illness. Get you past waiting periods for government and private income supports
Typical Definition to qualify for a claim: To determine whether or not a person is independent, most insurers look at the following six Activities of Daily Living (ADLs):
- Bathing
- Dressing
- Eating
- Toileting
- Continence
- Transferring (getting into or out of bed, sitting down or getting up from a chair — including a wheelchair)
This list may vary, and so it is important to carefully read the activities listed in the contract. You should also check the definitions of “loss of independence” and/or “state of Dependence” for each of these activities. This is important, because it is on this basis that the insurer will determine whether you are eligible to receive benefits. You should also check the tests required to determine eligibility in the event of mental deterioration.
For the insured to be eligible for benefits, some insurers require that s/he no longer be able to perform two of the five or six ADLs listed, whereas others require three. The higher the number, the more difficult it is to become eligible, which influences the cost of premiums. You should also check to see whether you need “concrete” help, that is, whether another person is absolutely required to help carry out the activity, or whether a person ready to act in case of need would meet the requirements.
Cognitive deficiency and altered mental function: long-term care policies generally offer this type of coverage. It’s good to know that the definitions of these illnesses and disabilities are based on standards of medical practice. This means that when a physician practicing in Canada diagnoses one of the illnesses covered, the insured is generally deemed eligible for benefits. To determine whether or not a person is independent, most insurers look at the previously mentioned six Activities of Daily Living (ADLs)
It’s good to know that the definitions of these illnesses and disabilities are based on standards of medical practice. This means that when a physician practising in Canada diagnoses one of the illnesses covered, the insured is generally deemed eligible for benefits.
- Bank Guaranteed Investment Certificate vs Insured Guaranteed Investment Annuity (account)
- Bank Term certain Annuity vs Insured Annuity for life and term certain annuity
- Bank Mutual fund vs Insured Segregated Fund
- Mutual Fund Company vs Insured
Segregated Fund Segregated Funds – Are issued under the insurance act and as such offer potential of:
- Creditor Protection
- Probate free transfer of assets
- Guaranteed maturity values
- Guaranteed income amount
Further protection for institutional failure by Assuris Mutual Fund do not offer these protections. Annuities Life insurer can offer income guarantees for as long as the insureds life with guaranteed minimum payments of set periods.
Assuris Protects Benefits – The types of benefits covered are: Death Benefit, Health Expense, Monthly Income, Cash Value and Accumulated Value.
Insolvent companies transfer of Policies – Rather than cancelling the policy and paying cash compensation, Assuris protects policyholders by facilitating the transfer of policies to a solvent company and ensuring the continuity of covered benefits under the original terms of the policy.
If a life insurance company fails, Assuris guarantees that on transfer, policyholders will retain at least 85% of the promised insurance benefits. Insurance benefits include Death, Health Expense, Monthly Income and Cash Value.
Deposit type products will also be transferred to a solvent company. For these products, Assuris guarantees that policyholders will retain 100% of the Accumulated Value up to $100,000. Deposit type products include accumulation annuities, universal life overflow accounts and dividend deposit accounts.
For a Tax Free Savings Account (TFSA) invested in an Accumulation Annuity, Assuris provides separate protection from other deposit type products. For TFSAs, Assuris guarantees that policyholders will retain 100% of the Accumulated Value up to $100,000.
Death Benefit Protection – If a life insurance company fails, Assuris guarantees that the policyholder will retain up to $200,000 or 85% of the promised Death Benefit, whichever is higher. Individual death benefits are issued under:
- Term
- Universal Life
- Traditional Whole Life
- Term to 100
- Other Individual Life Insurance Products
Health Expense Protection – If a life insurance company fails, Assuris guarantees that the policyholder will retain up to $60,000 or 85% of the promised Health Expense benefits, whichever is higher. Individual health expense benefits are issued under:
- Critical Illness Insurance
- Supplementary Medical Insurance
- Travel Insurance
Group health expense benefits are issued under Group Insurance Contracts.
Monthly Income Protection – If a life insurance company fails, Assuris guarantees that the policyholder will retain up to $2,000 per month or 85% of the promised Monthly Income, whichever is higher. Individual monthly income benefits are issued under:
- Payout annuities
- RRIFs (Registered Retirement Income Funds)
- Disability Income Insurance
- Long Term Care Insurance
Group monthly income benefits are often part of Group Retirement Plans. Individual cash value benefits are issued If a life insurance company fails, Assuris guarantees that the policy holder will retain up to $60,000 or 85% of the promised Cash Value, whichever is higher.
- Universal Life
- Traditional Whole Life
- Segregated Funds
Guaranteed Minimum Withdrawal Benefit (GMWB) – A Guaranteed Minimum Withdrawal Benefit (GMWB) is an option available in some segregated fund policies. A GMWB in a segregated fund policy guarantees that the policyholder will continue to receive an annual income, for a specified term or for life, even if the fund becomes depleted due to poor market performance of the fund assets.
At the time of failure, the policy will either be in:
- The Saving Phase, if no withdrawals have been made by the policyholder in the last twelve months, or
- The Payout Phase, if a withdrawal has been made by the policyholder in the last twelve months.
Assuris’ Protection – If your life insurance company fails, the actual value of the fund is not impacted. Your segregated fund policies will be transferred to another solvent company and the promised guaranteed amounts will be protected by Assuris as follows:
- In the Saving Phase, Assuris guarantees that you will retain up to $60,000 or 85% of the promised Guaranteed Withdrawal Balance, whichever is higher. The Guaranteed Withdrawal Balance includes deposits, bonuses, resets and withdrawals prior to the insolvency date.
- In the Payout Phase, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised Guaranteed Income Benefit, whichever is higher
- Ontario Insurance Licence #94022476- Government of Ontario Registered Insurance Brokers Ontario – reg#8007
- Certified Financial Planner- reg#00027
- Chartered Life Underwriter (class 1985)
- Chartered Financial Consultant (class 1989)
- Member in good standing and accepting of the Code of Conduct of:
- Registered Insurance Brokers of Ontario.
- Independent Insurance Brokers of Ontario
- Advocis
- Financial Planners Standards Council