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Latest News
Bring back the $10,000 TFSA + MORE Oct 6th
Federal Finance Minister Bill Morneau, left, with Prime Minister Justin Trudeau (Jake Wright/CP)
For those who pay attention to what politicians are up to on taxes, consider that since 2015, the focus has mostly been on raising them. From Atlantic Canada to Alberta, British Columbia and federally, .... More »
Do You Need to Insure a Car, Motorcycle, or RV That’s Sitting in Storage? Jul 14th
Everyone thinks about car insurance in terms of road liability. There are hefty fines for driving without insurance, and you should always have coverage in case of a collision. But what about those seasonal vehicles or classic cars you don’t drive?
As it turns out, there’s good reason t.... More »
Accident benefits have you covered—but for what, exactly? + MORE Feb 16th
Accident benefits are likely the last thing on your mind when you’re buckling up in a new ride and tuning into your ultimate road-trip playlist. But it’s important to know that this kind of car insurance is mandatory across Canada, and it plays a very important role if an accident happens and so.... More »
Need to cancel a trip due to COVID-19? Here’s how to get your money back Mar 15th
Most airlines and hotels are waiving cancellation fees, but collecting on travel insurance could be tough..... More »
How Baker Tilly Toronto supports insurance providers in transition Oct 23rd
The insurance industry is constantly evolving, facing disruptions from technological advancements, intergenerational wealth transfers, market consolidation driven by private equity, and shifting regulations.
For professional advisors like Baker Tilly Toronto, staying current in this business land.... More »
MONTREAL – A U.S. bankruptcy judge has approved plans for creditors in the Lac-Megantic train disaster to begin voting on terms of a $439-million settlement fund.
The fund was approved by a Canadian judge last Monday but also needs approval by a U.S. court for settlement cheques to be distributed to the families of the 47 people killed in July 2013.
Once the creditor voting in the United States has taken place, a judge is expected to consider on Sept. 24 whether to approve the plan.
Montreal Maine and Atlantic Railway Ltd. (MMA) owned the train that derailed but it didn’t have enough insurance to pay damages to victims and creditors, so it filed for bankruptcy in the United States and Canada.
About 25 companies accused in the derailment agreed to pay into a fund to compensate victims, which is tied to the bankruptcy proceedings in both countries.
Robert Keach, the court-appointed monitor for MMA’s bankruptcy proceedings in the United States, says he expects the settlement fund to be accepted south of the border…
The fund was approved by a Canadian judge last Monday but also needs approval by a U.S. court for settlement cheques to be distributed to the families of the 47 people killed in July 2013.
Once the creditor voting in the United States has taken place, a judge is expected to consider on Sept. 24 whether to approve the plan.
Montreal Maine and Atlantic Railway Ltd. (MMA) owned the train that derailed but it didn’t have enough insurance to pay damages to victims and creditors, so it filed for bankruptcy in the United States and Canada.
About 25 companies accused in the derailment agreed to pay into a fund to compensate victims, which is tied to the bankruptcy proceedings in both countries.
Robert Keach, the court-appointed monitor for MMA’s bankruptcy proceedings in the United States, says he expects the settlement fund to be accepted south of the border…
Notable & Quotable: Did Senators Commit Health Insurance Fraud?
– online.wsj.com
Did Senators and their staff pretend to be “small businesses” to get subsidies?Discussing life insurance is difficult but necessary
– moneysense.ca
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…
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…
Canada Needs $9 Billion to Cover Housing Crash: C.D. Howe Institute
– ratesupermarket.ca
If the housing market crashed, how would Canadians weather it? Without some changes, not very well, according to a recent report by the C.D. Howe Institute.
“In an era of rising house prices and high mortgage debt, heightened concern over the potential exposure of Canada’s mortgage insurance system — and taxpayers — is merited,” reads the report’s brief.
Higher Risk Buyers On The Rise
With the prices of homes reaching new highs, few homebuyers can pay the 20 per cent down payment that exempts buyers from requiring mortgage insurance. There’s currently $1.2 trillion in outstanding mortgage debt in Canada and more than half of that is backstopped by Canadian federal insurance. Translation: in the wake of a crash and employment losses, thousands of Canadian homeowners would be unable to make their monthly mortgage payments and Canadian taxpayers could be left to cover $9 billion in losses.
Also read: What is CMHC Mortgage Insurance?>
The report recommends reforms that would “better position the Canadian mortgage insurance system to address the risk of a severe housing crash”:
The Canadian government should create an independent fund that accumulates reserves to be used in the case of widespread mortgage payment defaults…
