What is new about Canadian life and health insurance association?

Abbreviated as CLHIA the history of Canadian life and health insurance can be traced back to 1894 when the Canadian life and health insurance association came into being. The organization finds its roots in Global Federation of Insurance Associations which is the largest insurance organization of the world. About 87% of the premiums of the world are related to this organization. The Canadian insurance system is highly regulated and one of the safest systems in the world. The private member bill was passed in 2010 which was strongly opposed by the political parties all over Canada. It is all because of the fact that the bill puts the burden on the consumers of the service. The higher profits are also something which this bill promises to the companies.

Rising dental fees in Alberta

The completion in the dental sector of Alberta is not what it should be. The regulations on the other hand further tighten the overall dental environment of the province. There are many factors which are to be considered before taking into account the subjected issue. The dentists in the province should be provided with the opportunities to advertise their services. They can reach the customers in a manner which is regulated. The consumer should have ample info at hand before availing the dental services. These are some of the ways to curb the rising dental prices.

Federal Standing Committee on Health Report and CLHIA

The CLHIA stance is very clear on the health plans which are offered to the Canadians. As per the organization representatives, there are about 25 million health plans which are currently being enjoyed by the Canadians. All the plan owners want to make sure that the medication which is of daily use for some is affordable. They want the same to be implemented to their health plans. At the same time, they don’t want to put their health plans at risk. The proposals of the Federal Standing Committee are very expensive as per CLHIA and would require an additional $20 billion which would be imposed in form of taxes.

Pharmacare Advisory Council

The National Pharmacare Advisory Council has been formed following the proposals in budget 2018. The Phramacare has always been a subject of much debate all over Canada. The CLHIA is of the view that such initiatives will allow the Canadians to talk about their concern about the pharma industry. The grant which has been provided to the council will make sure that the research and development of the sector are further fostered in Canada. The council members have an extensive background in the field. The members will travel all over Canada to meet the stakeholders of the industry so that effective plans can be devised.

Impact on Canadian life insurance

The CLHIA is working continuously to make the products of the sector more personalize. The best part of the plan is that the current insurance packages are maintained. It means that all this is not being done at the expense of the customers. Legal and tech developments are also being done to get the customers what they want to have.


Categories: Insurance matters

Long-term care insurance may soon be pulled out of Canada

Old age is irreversible along with the diseases and ailments that are associated with it. Advance in science and medicine has given a long life to the population but keeping oneself fit is a different story.

Many old people come to a point that they are unable to take care of themselves. They have to hire somebody to look after them and that can also be for longer periods. It may come as a respite that people can sign up for long-term care insurance which takes care of some of the financial burden. But that too may be lost out very soon!

It appears that long-term insurance is not that popular in Canada and the people don’t have a clear idea of the benefits. Still those who want to apply for it may not find any provider in the recent future.

Manulife Financial, one of the leading insurance companies have announced that they are going to discontinue the long-term care insurance come November 2017. According to company sources, the product does not have much demand in the market. Also, the recent federal laws are responsible for the move because they don’t allow the insurance provider to access medical reports.

The new Genetic Non-Discrimination Act states that insurers cannot demand genetic tests or their results to determine the eligibility for a product or service. The information is often required by the insurance providers to calculate the risks and accordingly, the premium amount. Not having such information will only make long-term care insurance more expensive than they already are. The premium amount increases with age and complexities and many people wait till old age to apply for it. This makes the cost excessively high and as a consequence many people turn away from it.

People also don’t realize the importance of long-term care insurance as the matter can arise years and decades later. Generally life insurance sells the most while disability and critical illness coverage are also common.

Long-term care automatically initiates when a person is unable to perform daily activities like bathing, eating, dressing, toileting and so on by themselves. The insuring company hands over tax free benefits which is spent as the patient pleases. Generally long-term care costs can range from $1,000 to $5,000 per month. With the discontinuation of individual insurance policies, the only way to get long-term care insurance would be to look for bundles that offer it with critical illness or disability policies.

There is an increased need for awareness about the specific type of insurance. 350,000 Canadians paid $116 million as premium for long-term care insurance in 2015. The policies are quite recent in the history of Canada being introduced for 20 years only, according to Conference for Advanced Life Underwriting (CALU).  It would be a great misfortune if insurers stop the service as the matter is quite serious. CALU had even appealed to the government to let people borrow money from their retirement accounts to manage their long-term insurance premiums. There is a need to look after the interests of the aging population and also the profitability of the insurance companies at the same time.


Categories: Law issues