EquiBuild, a flexible universal life insurance product for clients seeking long-term growth of their wealth.

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Life and health insurance industry experiences strong growth in 2014

Life and health insurance industry experiences strong growth in 2014

TORONTO, Aug. 31, 2015 /CNW/ – Today, the Canadian Life and Health Insurance Association (CLHIA) released the 2015 edition of Canadian Life and Health Insurance Facts. During 2014, the industry continued its trajectory of strong growth, despite the climate of prolonged low interest rates and slower growth of the Canadian economy. “The strong performance of the Canadian life and health insurance industry highlights the trust Canadians have in our companies, and that we continue to offer products and services that our customers need and value,” notes CLHIA President and CEO Frank Swedlove.

In 2014, Canadians’ purchases of insurance products were robust and the industry experienced year-over-year growth in premium revenues not seen since 2007, up 7.7% to $99.4 billion. Industry assets in Canada also rose 11.5% to $721 billion of which almost 90% were held in long-term investments, funding longer-term capital and infrastructure investments, critical to economic growth. Further, the industry paid out $83.5 billion to Canadian policyholders and annuitants in 2014, or more than $1.6 billionevery week. More details and statistics can be found in the CLHIA’s industry Factbook which is available on line atwww.clhia.ca

About the CLHIA

Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to 28 million Canadians. It also employs 155,000 Canadians as full-time employees and agents as well as independent advisors across the country.

SOURCE Canadian Life and Health Insurance Association Inc.

Smokers can sometimes pay twice as much as non-smokers for life insurance because of the correlation with more health problems.

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Manulife’s Canadian operations are headquartered in Waterloo. The company employs about 3,800 people in offices in Waterloo and Kitchener

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Talking about life insurance may be difficult, but needs to be done: advisers

By Craig Wong


OTTAWA – Talking about life insurance can be uncomfortable because it means contemplating what happens if you die, so Rob Knight has a trick when discussing the topic.

Knight, an investment adviser and director, private client group, with HollisWealth in Cambridge, Ont., asks clients to imagine what would happen if they died yesterday.

“Since they are alive today, they don’t worry about it as much,” he says.

But despite the discomfort in talking about it, Knight says insurance can play an important role in your financial plan.

If your death isn’t going to affect anyone financially, then you probably don’t need life insurance. But if it will, then you need to start thinking about how you can use insurance to protect your loved ones.

In determining how much life insurance, Knight says you need to consider what you owe and what you may want to replace in terms of income for those that remain.

If you’re a high-income earner and the sole breadwinner in your family, then you may need to consider more than if that’s not the case.

“The question that I ask clients is, ‘How much of this income do you want if something happens to person A?”’ Knight said.

“It is sometimes a gut answer and other times it is pure math.”

Jeff Hull, a senior financial adviser at Manulife Securities, said it is important to understand the purpose of the insurance.

“For a young family with a big mortgage, that could be safety and security as their prime objective or goal, and if they were to lose their breadwinner they would be destitute,” Hull said.

“For someone later in life, it could be an estate planning purpose to buying life insurance to leave a legacy for a cherished beneficiary or to donate to charity or to cover income tax at death.”

Life insurance can take different forms.

With term life insurance, you’re covered for a set period of time, often 10 or 20 years. Depending on your age, term policies can often be renewed until you reach a certain age. Permanent life insurance continues until your death.

Hull said most people tend toward term insurance because it can appear to be cheaper, but permanent insurance policies offer some advantages.

Most permanent or whole life insurance policies have a savings component that grows as the years pass.

“It might be a little more expensive up front, but over time as you build the savings component into it, over time there is a potential of having that insurance policy pay for itself with the savings that are built up,” he said.

It is also important to regularly review your life insurance because your needs will change as your own personal circumstance evolve.

Marriage, the birth of children, the purchase of major assets such as a home are key points when you will want to be sure to review how your life insurance fits within your financial plan.

“You don’t necessarily have to change your policy, but it is good to revisit it, just to make sure the plan and the purpose and the need as to why it was purchased still exist and whether it has to be upgraded or downgraded,” Hull said.


Magic Johnson adds life insurance co. to empire

Kaja Whitehouse, USAToday

Retired basketball superstar Earvin “Magic” Johnson just added a $14.5 billion life insurance company to his growing business and sports empire, Magic Johnson Enterprises (MJE).

On Tuesday, MJE, which Johnson founded in 1987, said it completed its planned acquisition for a “majority, controlling interest” in EquiTrust Life Insurance Company, which manages $14.5 billion in annuities, life insurance and other financial products.

MJE acquired a roughly 60% in EquiTrust from Guggenheim Partners, the New York-based financial giant that bought EquiTrust in 2011. Financial terms weren’t disclosed, but Guggeheim no longer owns a stake in the insurance company, said Paul Miller, COO at EquiTrust.

MJE announced plans to buy a stake in EquiTrust in January 2014. Miller attributed the delay in closing the transaction to the “legal and regulatory” requirements.

Over the years, Johnson has amassed a small empire of investments in sports teams, entertainment assets, restaurants and other businesses through MJE. But the purchase of EquiTrust marks the former Los Angeles Lakers point guard’s first big push into the financial services sector.

The purchase could lead Johnson to speak more on financial literacy education, acting as a kind of spokesperson for his new company.

“We believe financial literacy relative to estate and retirement planning is integral to the community,” said MJE spokewoman Christina Francis. “A well-capitalized company like EquiTrust gives us the platform to accomplish that objective. The company can promote financial literacy in the minority community by emphasizing the importance of life insurance for estate planning and annuities for retirement planning,” she said.

MJE’s portfolio also includes:

*A stake in the Los Angeles Dodgers baseball team

*An investment in Hero Ventures, the company behind The Marvel Experience, a theme-park attraction featuring Marvel’s famous heroes and villains

*A stake in the Los Angeles Sparks Women’s National Basketball Association team

*The Comcast channel ASPiRE, which celebrates the African-American experience

*An investment in Vibe Holdings, a New York-based magazine and television company that focuses on the urban market.

Under MJE’s ownership, Guggenheim will continue to manage money for EquiTrust, MJE said. Miller said the company’s management team will remain the same under the new ownership and that say-to-day operations “will remain largely unchanged.”

Johnson has done business with Guggeheim before, including joining the investment firm in the record $2 billion deal to buy the Los Angeles Dodgers baseball team in 2012.

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