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The Stability of the Life Insurance Industry in Canada

Given the problems encountered by some large financial institutions in the United States, how concerned should we be about the state of the life insurance industry in Canada?  It is a fact that over the past decade the number of life insurance companies operating in Canada has decreased dramatically.  This decrease is mainly due to the mergers and acquisitions of the existing companies.  For example, those individuals who maintained policies issued by Maritime Life, Commercial Union, North American Life, or Aetna Life, now find themselves insured by Manulife Financial.  Today, insurance is one of the most closely regulated industries in Canada.  Unlike the United States, in Canada, there is a government organization that supervises all of the federally incorporated and foreign insurers to ensure that these companies operate in a prudent manner.  This organization is the Office of the Superintendent of Financial Institutions (OSFI).  For those companies that are provincially chartered their oversight is provided by the province in which they do business.  The major life insurance companies are federally regulated by OSFI.

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Family Business Succession

Family Business Succession and Estate Equalization

Most parents feel strongly about ensuring that their children are treated equally in their will. For many, this is a moral obligation, and, on the surface that would seem easy to accommodate.  Often, however, this is not the case.  Most estates are not totally liquid at the death of the testator and some assets are harder to divide than others.  This is particularly true when a family business is involved, especially when many business owners have up to 80% or more of their wealth tied up in the family enterprise.

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« The question isn't at what age I want to retire, it's at what income. ~George Foreman »     ...     « 'You may never know what results come from your action. But if you do nothing, there will be no result.' – Mahatma Gandhi »     ...     « 'Most people are so busy knocking themselves out trying to do everything they think they should do, they never get around to do what they want to do.' – Kathleen Winsor »     ...     « 'Man must go back to nature for information.' – Thomas Paine »     ...     « 'When you have brought up kids, there are memories you store directly in your tear ducts.' – Robert Brault »     ...     « 'Challenges make life interesting, however, overcoming them is what makes life meaningful'. – Mark Twain »     ...     « 'Fear eats away love!' – Author Unknown »     ...     « 'Adolescence is perhaps nature’s way of preparing parents to welcome the empty nest.' – Karen Savage and Patricia Adams, The Good Stepmother »     ...     « ' You are as young as your faith, as old as your doubt; as young as your self-confidence, as old as your fear; as young as your hope, as old as your despair.' – Douglas MacArthur »     ...     « 'Patience is the companion of wisdom' - Saint Augustine »     ...     « 'All truths are easy to understand once they are discovered; the point is to discover them.' – Galileo »

ARTICLES OF INTEREST

1
Jan
criticalillness

Are You Ready To Deal With A Critical Illness?

Consider the following facts:

  • 40% of Canadian women and 45% of men will develop cancer during their lifetime
  • In 2005, cardiovascular disease (heart disease, diseases of the blood vessels and stroke) accounted for 31% of all deaths in Canada

Advances in medical science means that you have a better chance of surviving a critical illness. However, a critical illness often is accompanied by a huge financial burden to you and your family. Read more »

1
Jan
buildings

Protecting Your Business

While most business owners realize the benefits of corporate-owned insurance, many do not realize that flexible life insurance products such as universal life can provide them with the protection they need as well as a source of cash for business purposes.

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