Manulife offers new LTC choice and more news

With primarily baby boomers in mind, Manulife Financial has introduced a product feature that allows new and existing individual disability insurance customers to switch their coverage to long-term care insurance. For details, and to read other financial services industry updates, click the “full story” button below.

Previous Brieflies this week: | MON | TUE | WED | THU |

With primarily baby boomers in mind, Manulife Financial has introduced a product feature that allows new and existing individual disability insurance customers to switch their coverage to long-term care insurance.

The new Future Care Option allows eligible individual disability insurance customers to exchange all or part of their coverage for long-term care insurance when income protection is no longer needed. One of the primary benefits of the feature is that eligible individual customers will not have to undergo the application and underwriting process usually associated with long-term care insurance.

“Nearly every week, the media report on the state of our long-term care system. Who’s going to provide care and who’s going to pay for that care are issues now facing the more than four million Canadians over the age of 65,” said Michael Doughty, executive vice-president, individual insurance, with Manulife Financial.

“As that number doubles over the next few decades, it will put an unprecedented strain on our long-term care system and on seniors’ financial savings. By creating the Future Care Option, we’ve made it easier for Canadians to transition from protecting their income during their working years to protecting their assets against the costs of long-term care.”

• • •

Canadian pensions gain ground

Rebounding global stocks and stabilizing credit markets have helped push up Canadian pension fund returns in the third quarter.

According to a survey by RBC Dexia Investor Services, pension plans earned 7.2% in the quarter, boosting year-to-date results to 14.3%. Domestic stocks remained the top-performing asset class for Canadian pensions, growing 10.6% in the quarter and 29.6% over the year to date.

“Two solid back-to-back quarters doesn’t necessarily make a recovery, but it’s good to see some positive momentum,” said Don McDougall, director of advisory services with RBC Dexia.

In foreign equity, currency losses continue to overshadow global stock market gains. Year to date, the MSCI World Index climbed 20.3% in local currency terms, but pension plans increased by only 10.5% once converted into Canadian dollars.

“The stronger loonie has held us back in 2009, but we weren’t complaining last year when its weakness went a long way to soften our losses,” said McDougall.

• • •

Collins Barrow joins Baker Tilly

Collins Barrow, Canada’s largest association of chartered accountancy firms, has been given membership in Baker Tilly International.

Specializing in providing accounting and business services to entrepreneurial businesses and publicly listed corporations worldwide, the Baker Tilly International network is the eighth largest accountancy and business advisory network in the world.

“In Collins Barrow, we have found an association of firms of like-minded culture, commitment to excellence and service delivery standards, and that complete our representation in Canada, providing comprehensive coverage across this vital G8 nation,” said Geoff Barnes, CEO and president of Baker Tilly International.

Collins Barrow has 23 member firms and more than 40 offices from coast to coast.

“We are excited by this new alliance and believe that it will continue to help us enhance our global reach and support our commitment to offering the highest quality services,” said Lionel Goldman, chair of Collins Barrow. “Our clients are diversifying, globalizing their operations and looking to deal with the challenges of new reporting standards. With Baker Tilly International, we have the right global partner to help us continue being the leader in the mid-market.”

• • •

CIFA gets first Canadian member

Canada’s own Investment Counsel Association (ICAC) is partnering up with the Convention of Independent Financial Advisors (CIFA), an international organization that represents more than 500,000 advisors.

In doing so, the ICAC becomes the CIFA’s first North American partner association. The Geneva-based non-profit CIFA works to strengthen the role of independent financial advisors at the international level in order to better defend the interests of investors.

“We look forward to being part of an international foundation and to working with CIFA on initiatives supportive of effective regulation in the best interests of investors,” said Katie A. Walmsley, president of ICAC.

(10/21/09)