Brokers have been beating the drum on client education for years – but educating the Canadian Revenue Agency may be necessary to ensure life insurers cannot only maintain but expand their market presence, says one association president.
Brokers have been beating the drum on client education for years – but educating the Canadian Revenue Agency may be necessary to ensure life insurers cannot only maintain but expand their market presence, says one association president.
“The CRA does not like life insurance in non-traditional structures,” says Kevin Wark, the president of the Conference for Advanced Life Underwriting (CALU). “It is a question of us educating them.”
Wark was speaking at the recent CAILBA annual meeting, touching on such topics as the Life Insurance Testamentary Trust, and how insurance will play a role in long-term care.
“We are trying to influence what the government is doing, in terms of long-term care,” says Wark, “to ensure that long-term care infrastructure can take care of the Baby Boomer generation.”
Wark places the price tag of this large segment of the population that is expected to place a tremendous strain on the health care industry at $600 billion. And that provides an opportunity for insurers to fill the gap that current health care infrastructure will struggle to do.
“We know the provinces are in a poor position to fund that right now,” says Wark. “The life insurance product is currently underused, and it needs to be promoted.”
Wark suggests governments should provide tax incentives, like those in the United States, to enable Boomers to better place themselves to afford private coverage for their long-term care.
In addition, CALU is urging the government to change the Registered Retirement Income Fund minimum rules.
“Longevitiy has increased, s we want the government to rejig the formula,” says Wark, “so there is sufficient income for the older age groups.”
“The CRA does not like life insurance in non-traditional structures,” says Kevin Wark, the president of the Conference for Advanced Life Underwriting (CALU). “It is a question of us educating them.”
Wark was speaking at the recent CAILBA annual meeting, touching on such topics as the Life Insurance Testamentary Trust, and how insurance will play a role in long-term care.
“We are trying to influence what the government is doing, in terms of long-term care,” says Wark, “to ensure that long-term care infrastructure can take care of the Baby Boomer generation.”
Wark places the price tag of this large segment of the population that is expected to place a tremendous strain on the health care industry at $600 billion. And that provides an opportunity for insurers to fill the gap that current health care infrastructure will struggle to do.
“We know the provinces are in a poor position to fund that right now,” says Wark. “The life insurance product is currently underused, and it needs to be promoted.”
Wark suggests governments should provide tax incentives, like those in the United States, to enable Boomers to better place themselves to afford private coverage for their long-term care.
In addition, CALU is urging the government to change the Registered Retirement Income Fund minimum rules.
“Longevitiy has increased, s we want the government to rejig the formula,” says Wark, “so there is sufficient income for the older age groups.”
