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(April 9, 2008) Buying long-term care for couples rather than for an individual increases the likelihood the coverage will be used, Manulife Financial says.

Manulife Financial says research by reinsurance company Munich Re shows that two 60-year-olds who form a couple have an 81.5% chance that at least one of them will require long-term care in their lifetime, as opposed to 48.4% for an individual male and 64.2% for an individual female.

“The probability of needing long-term care is high among couples, especially the female partner. Females typically outlive their male counterparts and are often left alone without a caregiver. They also tend to have greater long-term care needs due to their advanced age,” says Montreal-based gerontologist, Dr. Rubin Becker. “Women can also face retirement savings shortfalls, especially if significant retirement funds were spent in prior years to support their partner’s care.”

According to Dr. Becker, the longer a person is expected to live the greater the likelihood the individual will need to fund long-term care.

“There is a very strong likelihood that those who live to age 85 or beyond will require some form of long-term care. Yet, it’s rare to see people plan accordingly. They struggle to visualize what care they will require and, in turn, find care costs much higher than imagined.”

Manulife says its new long-term care product, LivingCare, allows clients to play the odds and get coverage as a couple. With LivingCare, couples will have the flexibility to draw from a common pool of money if either (or both) of them needs long-term care, such as nursing care or home care services, in the future.

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Accountants work to make IFRS accessible

(April 9, 2008) International Financial Reporting Standards (IFRS) will hopefully be much clearer for Canadian businesses now, according to the Chartered Accountants of Canada. Its affiliated Accounting Standards Board has released an Exposure Draft of the coming standards.

“With an excellent look at what is coming, business leaders and financial planners must use this opportunity to determine how their operations will be affected,” said Ron Salole, vice-president of standards with the Canadian Institute of Chartered Accountants (CICA). “This is a chance to review the Exposure Draft from a fatal-flaw perspective and determine whether the move to IFRS will create any unique issues upon application within Canada.”

IFRS will apply to Canadian publicly-accountable enterprises. In general, these can include publicly-listed companies, certain government corporations and enterprises with fiduciary responsibilities such as banks, insurance companies, credit unions and securities firms. The draft document outlines what will be expected when IFRS is adopted for interim and annual financial statements for fiscal years beginning on January 1, 2011.

The move to international accounting standards will impose the same reporting practices on Canada as more than 100 other countries, including the U.K., many EU nations and Australia.

“A common international accounting language will help promote comparability for publicly traded companies worldwide,” said Salole. “IFRS is principles-based and is similar to the current Canadian approach in terms of conceptual framework and topics covered. Getting an early start in preparing for the transition to IFRS is essential for an effective and efficient changeover.”

The Exposure Draft can be downloaded from a dedicated IFRS website launched by the CICA at www.cica.ca/IFRS.

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Hartford Investments hits $1 billion mark

(April 9, 2008) Who wants to be a billionaire? Hartford Investments does and now, with more than $1 billion in assets under management, they’ve hit that prestigious benchmark.

In the 2008 RRSP season alone, the firm registered sales of $64 million.

“We’ve been steadily building the structure needed to reach this milestone, which in the Canadian fund market is a key watermark both psychologically and in business terms,” says Laurie Davis, president of Hartford Investments.

The positive news comes hot on the heels of Hartford’s announcement that Black Creek Investment Management’s Bill Kanko hired AIM Trimark manager Richard Jenkins to help run the Hartford Global Leaders Fund and the Hartford Global Balanced Fund.

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New website offers Canadians financial help

Figuring out a client’s financial health takes more than a click of a mouse — until now.

Financialsmart.ca, a new online service launched by advisor and author Jason Orr, gives people a snapshot of their financial health and provides suggestions on how to manage cash flow, reduce debt, lower taxes and make smart investment decisions.

“This annual financial fitness checkup will identify potential problems before they get out of hand,” says Orr. “People don’t wake up one morning and find themselves in financial difficulty. The onset of financial distress is predictable, but also avoidable.”

For a fee, users can also talk finance with Orr. “Talking to someone who isn’t peddling a financial product means the advice is unbiased. I’m paid for my expertise, not for the sales commissions I generate,” he says.

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RBC Insurance appoints new regional V-P

(April 9, 2008) RBC Insurance has appointed John McMeans to the position of regional vice-president, eastern and central region, for the life and health insurance division of RBC Insurance.

McMeans will be responsible for developing strategy and existing sales and service leadership team, to support the growth of life, living benefits, group insurance and wealth products in Ontario, Quebec and the Atlantic provinces through a wide variety of distribution channels.

McMeans has worked with RBC Insurance for the past 14 years, including the past five as the regional vice-president for the central region.

“We are certain that our customers and associates will benefit from John and his management team’s knowledge and understanding of the industry,” says Neil Paton, vice-president, insurance sales development, RBC Insurance. “John’s experience in coaching high-performing business teams, and his strong commitment to our distributors, advisors and customers in the eastern region make him an ideal fit for this role.”

(04/09/08)