For a majority of Canadians approaching retirement age, declining health is, understandably, their number one concern. In a recent RBC Retirement Myths and Realities Poll, 70 percent of younger baby boomers, categorized as being between the ages of 50-59, said they were most worried about preparing for and dealing with health problems. In order to deal with those issues, many boomers can turn to health and life insurance planning to ease their concerns.
A major reason for this stated concern comes from many aging Canadians not having a financial plan for long-term care. According to estimates by the Canadian Life and Health Insurance Association (CLHIA), baby boomers will require $1.2 trillion in long-term care needs, and only half of that will be covered by the government. Furthermore, a recent poll conducted by CLHIA found that 67 percent of Canadians who are 60 or older have not put together a financial plan to cover those costs. Continue reading
Canadians are in agreement about the need to reform prescription drug policy, an important part of overall Canadian healthcare.
According to Leger Marketing polling data released by the Canadian Life and Health Insurance Association, more than 90 percent of Canadians want lower prescription prices and 81 percent desire one price for a prescription drug regardless of public or private coverage, or if they pay out of pocket.
Private payers taking on much of the insurance costs
A recent report from the CLHIA detailed the need for reform in the way the Canadian healthcare system handles the delivery of prescription drugs amongst the provinces. The report explained that the trends in the industry are leading to higher costs for payers, both public and private. The CLHIA indicated as recently as 2011, "life and health insurers made benefit payments for prescription drugs of $10.1 billion and private payers accounted for roughly 55 per cent of all prescription drug purchases." Continue reading
When it comes to home loans, there's plenty of talk about mortgage rates, but far less about mortgage insurance. While not as exciting as fluctuating interest points, mortgage insurance is still a vital part of the homebuying process for most Canadians. It's with this in mind that prospective homeowners should do all they can to understand what mortgage insurance is and how it works.
What is mortgage insurance?
Typically, if a homebuyer takes out a mortgage loan with less than a 20 percent down payment, mortgage insurance is required. This insurance protects lenders in case a borrower is incapable of making mortgage payments and defaults on a loan. It's important to remember that this coverage is only for lenders, not homeowners. In most cases, if a homebuyer is able to pay a minimum of 20 percent on a down payment, mortgage insurance is not required. Continue reading
After dealing with mortgage rates and home loans, the last thing you want to do is add more stress to the home owning experience. However, it’s essential that homeowners understand how to keep their family and property safe in case of an emergency.
While less dangerous than other emergencies, power outages can still wreak havoc when it comes to your health, security and comfort. Besides the obvious inconvenience of your home’s appliances failing to work, power outages leave you vulnerable to things such as fire or carbon monoxide poisoning if your detection devices lose power. In addition, losing power could mean losing heat, something that could lead to serious damage and discomfort in the middle of winter.
One way to deal with power outages is to make sure that you have a backup system in place. Purchasing a generator will allow your home to continue functioning in case of a power outage, although you will likely need to ration power to the most important parts of your home. You can help cut down on wasting back up power by installing energy efficient appliances. Not only will these help in the case of using a back up generator, but they will save you money on energy costs as well. Continue reading
While all Canadian citizens and permanent residents are eligible for public health insurance, it’s important to remember that not all services you require may be covered under your province or territory's health insurance plan. Things such as dental care, private hospital rooms and prescription drug costs may need to be covered by private health insurance. While this can result in more expenses, it doesn’t mean you have to pay exorbitant amounts of money for quality healthcare. By using smart strategies, you can limit your costs and ensure that you’re saving money on your health insurance.
If you’re looking for the best deal on a purchase, it’s vital to shop around and compare prices. Every health insurance policy is different, and taking the time to find a policy that suits your needs can pay off big when it comes to costs. Research different health insurance companies. Speak to family and friends about their health insurance plans. Read reviews online. Something as important as health insurance shouldn’t be rushed into, especially if you’re looking to save money. Continue reading
Thinking about life insurance might not be the most cheery of subjects, but it’s hard to overestimate the importance of finding the right life insurance policy to fit your needs. Death is a part of life, but the financial strain that a loss of life can leave for family and friends will carry on long after you’re gone. By planning ahead and choosing the right life insurance policy, you can ensure that those you love are taken care of in the future.
What is life insurance?
Life insurances provides protection from loss of income due to death. In the case of your demise, a life insurance policy will help your family financially, paying out a specified amount of money to your beneficiaries. While life insurance is a vital part of financial planning, many people are unfamiliar with its workings. Continue reading
Purchasing life insurance can impact your finances just as much as taking out a mortgage. It’s with that in mind that you should focus on fully understanding your options when it comes to buying life insurance. While thinking about your mortality might not be the most enjoyable activity, proper preparation can ensure you get the best deal along with the peace of mind that your economic affairs are in order.
Decide your needs
The first step in buying life insurance is figuring out exactly what you need. An easy way to calculate your approximate costs is to add up your debt, funeral costs and a year of income replacement. There are also online calculators you can use to get an idea of how much money it would take to support your family after you’re gone. Just remember that there’s no need to waste money on an unnecessarily large policy while you’re still alive. Continue reading
With Hurricane Sandy ripping her way through homes and neighborhoods in the U.S. and Canada, leaving thousands of people homeless and even more without power, it's a little late to worry about whether your home is insured for natural disasters.
But hurricane season and tropical storms aren't the only concern for Canadians, and tornados, earthquakes and flooding (usually not insured under standard policies, but there may be exceptions) may also do severe damage to a home – does your insurance cover all possibilities?
All insurance policies are different and vary on the home's location, policy amount and company, so the first step in double checking insurance coverage is to take a look at the policy or contact your insurer to ask a few questions. If you do have natural disaster coverage, do you know how much the deductible is? Is it a deductible separate from your homeowner's policy? Continue reading
Not many people actually like to think about life insurance. The whole concept forces us to come to terms with our own mortality, having to make practical monetary decisions in regard to our limited time on Earth.
But at the end of the day, making sure our affairs are in order is important. For people who want to make sure their loved ones are taken care of after they pass, life insurance is a vital part of the process.
Unfortunately for consumers interested in universal life insurance plans, the process has gotten that much harder.
According to The Insurance and Investment Journal, insurance companies have raised prices on universal life plans yet again, marking the third price increase in just two years.
Limited pay plans – which ensure coverage for life while also guaranteeing an end to cost of insurance (COI) charges after a certain number of years – are seeing the biggest price hikes among universal life insurance plans.
The Insurance and Investment Journal reported that at Sun Life, rates for limited pay plans are increasing by 5 percent. Meanwhile, Canada Life is raising limited pay rates by an average of 11.5 percent. Continue reading
Much like the rising and setting of the sun, some things in life are just givens – death, taxes, bad reality TV shows.
Well, now you can add insurance to the list.
Just as most Canadians must shell out money for insurance to drive a car, the majority of Canadians must spring for insurance to buy a home. For homebuyers with less than 20 percent equity, paying for mortgage insurance is mandatory.
According to the Canadian Real Estate Association (CREA), the average home price in Canada is $350,192. That means that putting down 20 percent would run the average citizen $70,038 – a hefty chunk of change that most buyers can’t afford out of pocket.
Fewer than four in 10 buyers can afford a 20 percent down payment, according to the Canadian Association of Accredited Mortgage Professionals. Continue reading