Despite Romanow’s optimism, advisors recommend

New taxes could pay for additional healthcare funding, Senate committee suggests Romanow says medicare system needs an extra $15 billion from Ottawa (November 28, 2002) The Romanow commission report may cause the federal government to pump more cash into Canada’s medicare system but financial advisors still believe their clients should expect to pay for at […]

By Deanne N. Gage | November 28, 2002 | Last updated on November 28, 2002
3 min read
  • New taxes could pay for additional healthcare funding, Senate committee suggests
  • Few clients save for a sick day, says survey of Canadian advisors
  • Prescription for health: Healthcare financial planning solutions for Canadians
  • Critical illness could lead to emergency financial planning for many Canadians
  • Copayments through tax system could improve health system, reduce tax burden
  • Medical savings accounts bring choice, planning to healthcare: Report
  • Demographics create huge market for “living benefits” planning

    Kett sees healthcare issues affecting two generations of clients: retired clients and baby boomers who may have to care for their aging parents. Depending on the severity of the illness, parents may have to be placed in a private care facility, costing between $40,000 to $80,000 a year. Public facilities are available but they are few and far between, often with up to three-year waiting lists.

    Some boomers still underplay the magnitude of healthcare, says Aileen Pollock, a Certified Financial Planner with Toronto-based Pollock Financial. “Healthcare can take a back seat to other pressing priorities like paying off the mortgage or saving for their children’s education,” she says. “A lot of my clients do say, ‘My employer has benefits’ or ‘There is public healthcare available,’ but they have to realize that as they age, there will be a drain on the system.”

    Pollock tends to recommend critical illness insurance for all clients, especially for those who retire early and no longer receive any benefits from their employers.

    Clients also need to realize that Romanow’s findings are only recommendations at this point. “We’re still a ways from the implementation stage,” says Irene Klatt, director, health insurance policy, at the Canadian Life and Health Insurance Association. “We don’t know how the government will act on these recommendations, so advisors have to do their best to fill in the gaps and make sure their [clients’] healthcare needs are being properly met.”

    After all, as Kett puts it, “if our clients over-save or over-insure, they can always reduce their level of savings. But it’s harder to do it the other way around.”

    Do you advise your clients to do some healthcare financial planning? What strategies do you recommend? Chip in your thoughts by sending a message to the “Free For All” forum of the Talvest Town Hall on Advisor.ca.

    Filed by Deanne N. Gage, Advisor’s Edge.

    (11/28/02)

    Deanne N. Gage

  • Romanow says medicare system needs an extra $15 billion from Ottawa
  • New taxes could pay for additional healthcare funding, Senate committee suggests
  • Few clients save for a sick day, says survey of Canadian advisors
  • Prescription for health: Healthcare financial planning solutions for Canadians
  • Critical illness could lead to emergency financial planning for many Canadians
  • Copayments through tax system could improve health system, reduce tax burden
  • Medical savings accounts bring choice, planning to healthcare: Report
  • Demographics create huge market for “living benefits” planning

    Kett sees healthcare issues affecting two generations of clients: retired clients and baby boomers who may have to care for their aging parents. Depending on the severity of the illness, parents may have to be placed in a private care facility, costing between $40,000 to $80,000 a year. Public facilities are available but they are few and far between, often with up to three-year waiting lists.

    Some boomers still underplay the magnitude of healthcare, says Aileen Pollock, a Certified Financial Planner with Toronto-based Pollock Financial. “Healthcare can take a back seat to other pressing priorities like paying off the mortgage or saving for their children’s education,” she says. “A lot of my clients do say, ‘My employer has benefits’ or ‘There is public healthcare available,’ but they have to realize that as they age, there will be a drain on the system.”

    Pollock tends to recommend critical illness insurance for all clients, especially for those who retire early and no longer receive any benefits from their employers.

    Clients also need to realize that Romanow’s findings are only recommendations at this point. “We’re still a ways from the implementation stage,” says Irene Klatt, director, health insurance policy, at the Canadian Life and Health Insurance Association. “We don’t know how the government will act on these recommendations, so advisors have to do their best to fill in the gaps and make sure their [clients’] healthcare needs are being properly met.”

    After all, as Kett puts it, “if our clients over-save or over-insure, they can always reduce their level of savings. But it’s harder to do it the other way around.”

    Do you advise your clients to do some healthcare financial planning? What strategies do you recommend? Chip in your thoughts by sending a message to the “Free For All” forum of the Talvest Town Hall on Advisor.ca.

    Filed by Deanne N. Gage, Advisor’s Edge.

    (11/28/02)