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Without a doubt, life insurance is valuable protection provided by your employee benefit plan, but should it be the only life insurance coverage you have? Probably not, if you want to ensure you have sufficient long term protection to cover all your family’s financial needs should you die unexpectedly.

Without a doubt, life insurance is valuable protection provided by your employee benefit plan, but should it be the only life insurance coverage you have? Probably not, if you want to ensure you have sufficient long term protection to cover all your family’s financial needs should you die unexpectedly.

In a recent study conducted by the Life Insurance and Market Research Association (LIMRA), it was reported that 61% of Canadians hold some form of life insurance. Surprisingly, it also revealed that only 38% of Canadians own an individual life insurance contract. This means that almost 40% rely solely on the life insurance provided by their employer. This can be problematic. The disadvantages of having your employee benefit plan as your only life insurance protection include the following:

It is probably not enough to pay off your mortgage and/or provide income for your spouse and family.

The amount of life insurance protection provided by group insurance in most cases is equal to only one or two times annual income. If this is not enough to do the job, the addition of individual life insurance should be considered.

If you lose your job, you may also lose your life insurance protection.

If you are currently employed in an industry or with a company that may be at risk due to economic conditions, you may find yourself with no life insurance at all.

Upon retirement, or if you leave your job, in most cases you will lose your group insurance. While group life insurance usually contains an option to convert to an individual plan, the plans that are offered are usually restrictive or very expensive.

What place should group life insurance hold in your planning?

To answer that question, let’s first look at the differences that individual life insurance has compared to group. Individual life insurance comes in two forms– term life insurance (which expires at a certain age) and permanent life insurance (e.g. Universal Life or Whole Life) which provides protection for one’s entire life and can also build savings through a cash value.

One can consider the specific type of life insurance, therefore, as being one of three categories:

• Permanent life insurance – the type you own. By paying your premiums each year you build up equity in your insurance. At some point in time, the policy may be fully paid up or self-supporting. You can even take advantage of your equity in the policy by borrowing – similar to borrowing against the equity in your home.

• Term life insurance – the type your rent. Term life insurance usually has a renewal period which could be ten years, twenty years, or even longer. At the end of this period, your “lease” renews for a higher premium (“rent”). When you rent a home you never build up any equity and this is the same with term insurance. After paying all those rental premiums the policy expires at a certain age with no cash value.

• Group life insurance – the type you borrow. You, the insured do not have a contract with the life insurance company as that arrangement rests with the employer. The employer and the insurance company retain the right to cancel the entire benefit plan. As a result, the analogy can be made that your employer is “lending” you the coverage.

In reviewing these three types of coverage, it is advisable that you should have a base or foundation of permanent coverage which would provide protection for life at a fixed cost. This also provides the added advantage of creating equity which could be borrowed against should a future need for cash arise.

You could then consider layering lower cost term insurance to protect a growing family and ensure that there would be enough capital to retire debt and provide for family income. With a family, there is a very high dependency period when the children are young, and the expenses are high. Low cost temporary insurance is used to provide adequate protection during this period. Term insurance also comes with the bonus of being convertible to permanent coverage should you become uninsurable with a far greater choice of options than those with a group life conversion.

Lastly, for those with group life insurance, this coverage can be looked upon as forming part of the term insurance needed or as a top up to provide for contingencies.

Give me a call if you would like to discuss restructuring your life insurance coverage to provide the maximum result. As always feel free to share this article with those you think would benefit from this information.

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Individuals who have incorporated their business such as consultants, contractors and professionals often find that providing affordable health and dental care coverage for themselves and their families can be an expensive proposition.

Individuals who have incorporated their business such as consultants, contractors and professionals often find that providing affordable health and dental care coverage for themselves and their families can be an expensive proposition.

Take Bob for example. Bob had just left his architectural firm to set up on his own. In looking at the options available for him to replace his previous firm’s Extended Health and Dental coverage for he and his family, he discovered that the monthly premium would be between $400 and $500 per month. This was for a plan that didn’t provide coverage for all practitioners and procedures, had an annual limit on the benefits, and a co-insurance factor of 20% (only 80% of eligible costs were covered). There wasn’t even any orthodontia coverage although he could purchase that in limited amounts at an additional cost! He also had to move quickly to replace his lost coverage as he had a pre-existing condition that most likely would not be covered if he waited too long to implement the new plan.

It seemed to Bob that there was a possibility of not receiving full value for his extended health and dental premiums. It was possible that he would spend far less than the $6,000 of premiums he would pay over the course of the year. The monthly premiums were also not tax-deductible. Fortunately, Bob found out about the Health Spending Account (HSA).

What is a Health Spending Account?

An HSA is becoming a popular alternative to traditional health insurance. An HSA is defined by the Canada Revenue Agency as a Private Health Spending Plan. Under the terms of a PHSP, eligible small business owners can;

• pay for their family’s medical expenses

• deduct the cost from the business income

• not have the benefit taxable to the business owner/employee

This article focuses on HSA as it applies to a one-person owner of a small business corporation. As you might expect, there are guidelines that must be met and restrictions that will apply.

• These plans cannot be for shareholders only. The shareholder must be a valid employee and receive a portion of his or her remuneration in the form of salary.

• The CRA prefers that the corporation employ the services of a third party to manage the plan and adjudicate the claims.

It is in the business owner’s best interests to use the services of a Third-Party Administrator (TPA) who specializes in PHSP’s to ensure that all the requirements are met, and all claims and payments are valid.

What does an HSA cost?

The cost of the Third-Party Administrator is very reasonable. There is usually an initial set up charge of a few hundred dollars and on-going fees run 5% to 15% of the claimed amount (plus taxes), with the typical fee being approximately 10%.

Some firms also charge an annual fee, so it is best to shop around or ask your financial advisor for advice. Being able to submit claims online and receive reimbursement by EFT almost immediately is a benefit that many of the third-party administrator’s offer.

How does it work?

Bob’s first experience with his HSA illustrates how the plan works. The HSA that Bob had implemented is referred to as a Cost-Plus plan which is the most popular arrangement with one-person corporations.

Let’s Break it Down

• Bob’s daughter started orthodontic treatments and his first charge was $1,000.

• Bob paid this amount by credit card (yes, he got points for that).

• Bob then forwarded the receipt for his payment directly to the TPA who would reimburse Bob his full $1,000.

• The TPA then bills Bob’s company for the amount of the treatment plus their 10% charge.

• Bob’s company pays the invoice and gets to deduct the $1,100 from corporate taxable income.

• The payment Bob’s company made is not taxable to Bob.

A good result! Bob has his expense reimbursed tax-free while his company gets to deduct the amount of the payment plus the administrative cost.

What are the advantages of an HSA?

• All medical procedures, necessary equipment and certified practitioners as listed by the CRA are covered in full.

• There are no medical questions for starting a plan and no pre-existing conditions clause to satisfy.

• All dependents may be covered.

• Deductible portions or shortfalls in other plans can be claimed.

• Benefits are not taxable while the costs to the corporation are tax-deductible.

As with any government regulated plan, make sure you employ the services of those who are experienced in advising on PHSP’s. They will not only guide you as to the best way to set up your plan, they will keep you out of trouble once you do.

As always, please feel free to share this with anyone you think may find it of interest.

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New Rules governing the Canada Pension Plan took full effect in 2016. Under these rules, the earliest you can take your CPP Pension is age 60, the latest is 70. The standard question regarding CPP remains the same – should I take it early or wait?

New Rules governing the Canada Pension Plan took full effect in 2016. Under these rules, the earliest you can take your CPP Pension is age 60, the latest is 70. The standard question regarding CPP remains the same – should I take it early or wait?

 

If you take it at the earliest age possible, age 60, your CPP income will be reduced by 0.6% each month you receive your benefit prior to age 65. In other words, electing to take your CPP at age 60 will provide an income of 36% less than if you waited until age 65.

 

CPP benefits may also be delayed until age 70 so delaying your CPP benefits after age 65 will result in an increased income of 0.7% for each month of deferral. As a result, at age 70, the retiree would have additional monthly income of 42% over that what he or she would have had at 65 and approximately 120% more than taking the benefit at age 60. The question now becomes, “how long do you think you will live?”

 

Assuming that an individual has $10,000 of CPP pension at age 65, and ignoring inflation (CPP income benefits are indexed according to the Consumer Price Index), the following table compares the total base income with that if benefits are taken early or late:

 

Total benefit received    CPP Benefit Commencement

Age 60    Age 65      Age 70

One year               $ 6,400    $ 10,000  $ 14,200

Five years              $ 32,000   $ 50,000   $ 71,000

Ten Years               $ 64,000   $100,000   $142,000

 

The question of life expectancy can be a factor in determining whether to take your CPP early. For example, according to the above table if you take your pension at age 60, by the time you reach age 65; you would already have received $32,000 in benefits. With $10,000 in pension income commencing at age 65 the crossover point would be age 73 (the point at which the total income commencing at age 60 equals the total income commencing at age 65). If you were to die prior to age 73, you would have been better off taking the earlier option.

 

If your choice is to delay taking the pension until age 70 instead of 65, the crossover would not be reached until age 85.

 

Some individuals may wish to elect to take the pension early and invest it hoping that the income from age 60 combined with the investment growth will exceed the total income that would be received by starting at 65.

 

Remember, if you elect to take your pension before 65 and you are still working, you must continue to contribute to CPP. After age 65, continuing contributions while working are voluntary. On the plus side, these extra contributions will increase your pension under the Post-Retirement Benefit (PRB).

 

Reasons to take your CPP before age 65

  • You need the money– number crunching aside, if your circumstances are such that you need the income then you probably should exercise your option to take it early;
  • You are in poor health– if your health is such that your life expectancy may be shortened, consider taking the pension at 60;
  • If you are confident of investing profitably– if you are reasonably certain that you can invest profitably enough to offset the higher income obtained from delaying your start date, then taking it early may make sense. If you are continuing to work, you could use the CPP pension as a contribution to your RSP or your TFSA.

 

Reasons to delay taking your CPP to age 70 

  • You don’t need the money– if you have substantial taxable income in retirement you may want to defer the CPP until the last possible date especially if you don’t require the income to live or support your lifestyle;
  • If you are confident of living to a ripe old age– if you have been blessed with great genes and your health is good you may wish to consider delaying your CPP until age 70. Using the earlier example and ignoring indexing, if your base CPP was $10,000 at 65 then the pension, if delayed until age 70, would be $14,200. If you took the higher income at 70, you would reach the crossover point over the age 65 benefit at age 84 and after that would be farther ahead.

 

This information should help you make a more informed choice about when to commence your CPP benefits. Even if retirement is years away it is never too early to start planning for this final chapter in your life. Call me if would like to discuss your retirement planning.

 

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Owners of very successful private corporations are well aware of the importance of cash flow. Many are protective of how they allocate corporate capital so that business ventures are adequately funded and investment opportunities are not missed.

Owners of very successful private corporations are well aware of the importance of cash flow. Many are protective of how they allocate corporate capital so that business ventures are adequately funded and investment opportunities are not missed.  

The Immediate Financing Arrangement offers an opportunity to provide life insurance coverage and accumulate wealth on a tax-advantaged basis without impairing corporate cash flow.

What is an Immediate Financing Arrangement (IFA)?

An IFA is a financial and estate planning strategy that:

·      Combines permanent, cash value life insurance with a conservative leverage program allowing the dollars allocated to the life insurance premiums to do double duty by still being available for business and investment purposes;

·      In the right circumstances and when structured properly so that all possible tax deductions are used, an improvement in cash flow could result.

Who should consider this strategy?

IFA`s are not for everyone. For those situations that best match the necessary criteria, however, significant results can be achieved. The best candidates for an IFA usually are:

·      Successful, affluent individuals who are active investors or owners of thriving privately held corporations who require permanent life insurance protection;

·      Of good health, non-smokers, and preferably under age 60;

·      Enjoying a steady cash flow exceeding lifestyle requirements;

·      Paying income tax at the highest rate and will continue to do so throughout their life.

How does it work?

·      An individual or company purchases a cash value permanent life insurance policy and contributes allowable maximum premiums;

·      The policy is assigned to a bank as collateral for a line of credit;

·      The business or individual uses the loan advances to replace cash used for insurance purchase and re-invests in business operations or to make investments to produce income. This is done annually;

·      The borrower pays interest only and can borrow back the interest at year end;

·      At the insured’s death the proceeds of the life insurance policy retire the outstanding line of credit with the balance going to the insured’s beneficiary;

·      If corporately owned, up to the entire amount of the life insurance death benefit is available for Capital Dividend Account purposes.

Proper planning and execution is essential for the Immediate Financing Arrangement. However, if you fit the appropriate profile, you could benefit substantially from this strategy.

If you wish to investigate this strategy and whether it can be of benefit to you, please contact me and I would be happy to discuss this with you. As always, feel free to use the sharing icons below to forward this to someone who might find this of interest.

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Statistics Canada states that over 350,000 Canadians 65 or older and 30% of those older than 85 will reside in long term care facilities. With increasing poor health and decreased return on investments, the fear of facing financial instability in your declining years is real.

(Back to Back Long Term Care)

Will your family be affected by the costs of caring for an aging loved one?

Statistics Canada states that over 350,000 Canadians 65 or older and 30% of those older than 85 will reside in long term care facilities. With increasing poor health and decreased return on investments, the fear of facing financial instability in your declining years is real.

How will this impact your family?

Caring for an aging parent or spouse takes its toll emotionally and financially. Adult children with families and job pressures of their own are often torn between their obligations to their parents, children and careers. This often results in three generations feeling the impact of this care.

Is it important to you to have control over your level of care?

Consider this:

·      The cost of providing for long term care is on the rise

·      While many Canadians assume that full-time care in a long term care facility will be fully paid by government health programs; this simply is not the case. In fact, only a small part (if at all) of the costs of a residential care facility will be paid by government health care programs

·      28% of all Canadians over the age of 15 provide care to someone with long term health issues

·      For the senior generation, the prospect of the failing health of a spouse puts both their retirement funds and their children’s or grandchildren’s inheritance at risk 

·      Capital needed to provide $10,000 month benefit (care for both parents) for 10 years is $ 1,000,000 (if capital is invested at 4% after-tax)

Case Study

Norman (age 64) and Barbara (age 61) have three children, aged 32-39. While still in good health the family does have a concern for their future care.

To safeguard against failing health it was decided that they purchase Long Term Care Policies to protect their quality of care and a Joint Last to Die Term 100 Life Insurance Policy to recover the costs.

The Long Term Care policies would pay a benefit for facility care in the amount of $1,250 per week for each parent. The monthly premium for $10,000 per month Long Term Care for both Norman and Barbara is $544.17.

The Premium for a Joint Last to Die Term to Age 100 policy with a death benefit of $250,000 is $354.83 per month.

Upon the death of both parents $250,000 is paid to the beneficiaries (children) tax free from the life insurance policy, returning most if not all of the premiums paid.

 

Advantages of the Long Term Care Back to Back Strategy·      Shifts the financial risk of care to the insurance company

·      Allows for a comfortable risk free retirement

·     Preserves estate value for future generations

When is the best time to put this structure in place?

·      Remember, the older the insured, the higher the costs

·      Do it early while you are still insurable!

Please call me if you think your family would benefit from this strategy. Feel free to use the sharing icons below to forward this to someone who might find this of interest.

Should you wish to learn a little more about long term care, the Canadian Life and Health Insurance Association (CLHIA) has published a brochure which can be downloaded here

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There are a number of obstacles that could potentially de-rail a comfortable retirement. These include marriage breakdown, a stock market crash, and being sued. Another huge obstacle would be the diagnosis of a life threatening critical illness affecting you or your spouse. While it might be difficult to insulate yourself against some of the threats to retirement security, Critical Illness insurance goes a long way to mitigate the financial disaster that could result from a change in health as we approach retirement.

There are a number of obstacles that could potentially de-rail a comfortable retirement. These include marriage breakdown, a stock market crash, and being sued. Another huge obstacle would be the diagnosis of a life threatening critical illness affecting you or your spouse. While it might be difficult to insulate yourself against some of the threats to retirement security, Critical Illness insurance goes a long way to mitigate the financial disaster that could result from a change in health as we approach retirement.

 

Considering that the wealth of many Canadians is comprised of the equity in their homes and the balance of their retirement plans, having to access funds to combat a dreaded illness could put their retirement objectives in jeopardy. Imagine that you are just a few years into or approaching retirement and you or your spouse suffers a stroke.  The prognosis is for a long recovery and the cost associated with recovery and care is projected to be substantial. Statistics show that 62,000 Canadians suffer a stroke each year* with over 80% surviving* many of whom would require ongoing care. Since 80% of all strokes happen to Canadians over 60 those unlucky enough could definitely see their retirement funding jeopardized.

 

Sun Life recently reported that for a 45-year old couple, the risk of at least one spouse having a serious health condition by age 70 is 61.5%. With odds like these it is fortunate that a product exists that will provide tax-free cash to help defray the expenses associated with the care and recovery from a serious illness. Accessing retirement plans on the other hand, would trigger income tax on the funds withdrawn, adding to the financial burden.

 

While statistics indicate that the chances of having a critical illness are high, they also support the notion that those with the foresight in their planning to include Critical Illness insurance have a greater chance of keeping their retirement funds intact.

 

Critical Illness insurance is offered by most major Canadian life insurance companies. It can be purchased with different terms, from 10-year renewable to permanent plans providing protection up to age 100. Like most insurance products the cost is based on the age of the insured so the younger you get it the lower the cost will be. While 10 or 20-year plans are appealing based on price, consider how long you will need the coverage for.

 

If you wish to keep the policy into your retirement years, for the reasons stated here, a permanent plan or one that offers coverage to age 75 may be preferable, as premiums are locked in at lower rates. Some policies offer a Return of Premium rider that refunds premiums paid when the contract expires or is cancelled with no critical illness claim.

 

Saving for retirement is always a good idea and protecting your savings in the event of a critical illness is essential. It may be wise to consider doing it now, while you are still in good health and can take advantage of lower premiums.

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It has been said that a Will is the last message you will leave your family. Having a Will can provide clear direction as to what your wishes are and who will get what. Die without a Will (known as dying intestate) and chaos will likely be the result. Having a Will allows you to provide for certainty instead of chaos.

It has been said that a Will is the last message you will leave your family. Having a Will can provide clear direction as to what your wishes are and who will get what. Die without a Will (known as dying intestate) and chaos will likely be the result.  Having a Will allows you to provide for certainty instead of chaos.

Most of the reasons to have a Will have to do with what happens if you don’t have one and that often will depend on what province you reside in. Each provincial government has its own Wills and Estate legislation which also provides for the rules regarding intestacy. The following are some of the reasons to have a Will and what could result without one.

1.  Informs your family how and when your property is to be distributed

Your Will affords you the opportunity to give clear instructions as to whom will receive your wealth. It also allows you to make bequests of certain items such as family heirlooms which you may wish to leave to a specific individual. For those who wish to leave funds to a charity, the Will allows you to do this. Without a Will, this opportunity may be lost. The bottom line is that you make the call. Dying without a Will means that the provincial government will make the determination on how your estate is to be distributed depending on the intestacy laws.

For example, if there is a spouse and children, the spouse will usually receive a specified amount. That amount can vary between $200,000 and $300,000 depending on the province. Any amounts over that are, for most provinces, split between the children and the spouse. The amounts due to the children, however, are not received by them until they reach the age of majority. Up until then, those funds are administered by the provincial government. If you reside in Alberta or Manitoba the children receive nothing, and all goes to the spouse.

If you die without a spouse and without children, then the assets will be left to parents, siblings, nieces and nephews, in that order. The government will receive all if there are no relatives. And remember those family heirlooms that you could dictate to whom they went in your Will? Without a will those and other similar assets will most likely have to be sold so the estate can properly be distributed.

2.  Allows the testator to name an Executor

The task of the Executor is to administer the estate and ensure that the testator’s wishes are carried out. Without a Will, there is no Executor, and an administrator must be appointed by the government. Usually, this will be the spouse, but if the spouse is not willing or capable then someone else will have to be found to carry out this function. Regardless, the result usually will be unnecessary delays and increased expenses.

In administering estate assets, the role of an Executor also helps to ensure that there is no loss of estate assets due to lack of oversight prior to the assets being distributed.

3.  Protects a common law spouse

British Columbia, Saskatchewan, Manitoba, North West Territories and Nunavut recognize common law marriages where the parties have lived together for more than two years. In these jurisdictions common law spouses have the same rights as a married spouse. In all other provinces, however, they are not recognized and as a result are entitled to nothing. There may be exceptions where a dependency claim can be made to the courts, but that could prove to be expensive and result in significant delays. It also could result in other family members making objections to the court. With a properly drafted Will, the rights of a common law spouse are protected.

4.  Naming a guardian for your children

Having the choice as to who will look after your children should you die is an extremely important reason to have a Will. This is especially true in the case of a common disaster involving both parents. Consider the unimaginable scenario in which the decision as to who should be the guardian of your children was left to the courts.

5.  Leaving instructions for your funeral, burial or cremation

A Will affords you the opportunity to leave concise instructions regarding your funeral arrangements. Dying without a Will or with no clear directive could cause stress and family discord. 

6.  Proper estate planning can result in income tax savings

Estate planning, including a properly drafted Last Will and Testament, may result in tax savings. On the other hand, dying intestate will see this opportunity lost and administrative costs increased. 

It is unfortunate that many Canadians do not have a Will. While there may be some circumstances where a Will is not necessary, for those Canadians who are married and have children, a Will is vital and should not be overlooked. Ideally, a Will should be drafted by a lawyer who is acquainted with all the technical requirements and contingencies that come into play. 

If you are without a Will, talk to a professional who can assist you as soon as you can.

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The Genetic Non-Discrimination Act and its Impact on Life Insurance

One of the many advancements in medicine has been the use of genetic testing in determining the probability that an individual will develop a life- threatening illness or condition. Knowing that you or your children are not at risk of a major illness can be of great comfort while knowledge to the contrary can be of great value in preventative treatment and planning. The most famous example of this is the American actress Angelina Jolie undertaking a double mastectomy after learning that she carried a gene that made developing breast cancer a very high probability for her. 

There has been a growing concern, however, that individuals would be very reluctant to undergo genetic testing if knowing the results could affect their ability to properly insure themselves or impact their opportunities for employment. As a result, a private member’s bill, Bill S-201, was introduced in the Canadian Senate resulting in the Genetic Non-Discrimination Act being recently enacted into law. 

What does the Act do? 

It is now illegal for employers, insurance companies, or any other entity or individual to require anyone to undergo genetic testing or to disclose the results of a genetic test before entering into a contract of employment or a contract which provides goods or services. Now, if you apply for life, disability or critical illness insurance, you cannot be denied coverage due to the results of a genetic test. Insurance companies and their agents are also prohibited from “collecting, using or disclosing” the results of a genetic test without an individual’s written consent. Penalties for not complying with the new law are severe. 

It is interesting to note that the insurance industry in Canada has never required an applicant to undergo genetic testing in order to underwrite an insurance application. What the underwriters did require, however, was that if an applicant did have prior genetic tests that the results of those tests be disclosed. While the new legislation was being considered before the House, the Canadian Life and Health Insurance Association announced that the industry would voluntarily agree not to ask for genetic test results for life insurance coverages up to $250,000 which represented approximately 85% of all applications. 

While many are hailing the new legislation as protective of an individual’s right to privacy, the Act is proving to be somewhat controversial, and many insurance industry observers and legislators are expressing concern for a number of reasons. Even prior to the bill becoming law, the Trudeau government expressed doubt as to the law’s constitutionality and there are some who feel the new Act will undoubtedly be challenged in court (the Trudeau cabinet was against the bill but the government allowed a free vote and over 100 Liberals voted in favour). Here are the areas of concern with the new Act from some of the different stakeholders – the life insurance industry, the Ministry of Justice, and the Canadian Institute of Actuaries: 

Conflict with provincial law 

The Insurance Act of each province provides that any material fact relevant to an insurance application must be disclosed. The current health and probable future health of an applicant as indicated in a genetic test is certainly relevant when purchasing life or disability insurance. As a result, the new Act is in direct conflict with provincial legislation. Up until now, the regulation of insurance contracts has been strictly a provincial matter. 

Penalties for violations 

The Minister of Justice has expressed concerns that Canada is deviating from its normal approach in enforcing laws against discrimination. Unlike other penalties for discrimination such as race, sex or disability, the consequences of violating the Genetic Non-Discrimination Act are up to $1 million in fines and 5 years imprisonment. This is unusual to say the least. 

Anti-Selection 

Probably the biggest issue for the insurance industry is the anti-selection risk. Some applicants for insurance knowing their higher risk factors due to genetic testing are certain to act upon this incentive to buy more insurance than they otherwise would at what would be lower than free market rates. 

Effect on premiums 

The Canadian Institute of Actuaries (CIA) is of the opinion the new Act will result in higher premiums. As a result of the insurance industry being restricted in obtaining full disclosure necessary for underwriting purposes, the CIA stated that their research indicates that premiums for males could eventually go up by 30% and 50% for females. 

Faced with the potential for higher premiums, anyone who is contemplating purchasing or reviewing their insurance in the near future should definitely do so as soon as possible. For now, fully guaranteed products at a fair price are the norm in Canada. Whether or not this changes as a result of the Genetic Non-Discrimination Act remains to be seen.     

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