The objective of this brief paper is to help you understand how to protect your greatest worldly asset on behalf of your family and your business, if you own one. The greatest asset that is referred to in this paper is your ability to earn income. Three major things that reduce or eliminate your ability to do this are illness, disability and death. The following statistics are gathered from sources listed at the end of this paper and are current to Dec 31st 2018.
BC Finance Minister Carole James delivered the province’s 2019 budget update on February 19, 2019. The budget anticipates a surplus of $274 million for the current year, $287 million for 2020 and $585 million in 2021.
The biggest announcements are:
- BC Child Opportunity Benefit
- Interest Free Student Loans
BC Child Opportunity Benefit
The BC Child Opportunity Benefit covers all children under 18 and can be applied for starting in October 2020. (This replaces the Early Childhood Tax Benefit where the benefit ended once a child turned six.)
Starting October 2020, families will receive a refundable tax credit per year up to:
- $1,600 with one child
- $2,600 with two children
- $3,400 with three children
Families with one child earning $97,500 or more and families with two children earning $114,500 or more will receive nothing.
Interest Free Student Loans
The provincial portion of student loans will now be interest-free effective as of February 19, 2019. The announcement covers both current and existing student loans.
Medical Services Premium
As previously announced in the last budget, effective January 1, 2020, the Medical Services Premium (MSP) will be eliminated. In last year’s budget update, MSP was reduced by 50% effective January 1, 2018.
Public Education System
The public education system will receive $550 million in additional support.
Pharmacare program will be expanded with an additional $42 million to cover more drugs, including those for diabetes, asthma and hypertension.
To learn how these changes will affect you, please don’t hesitate to contact us.
As our lives grow and change with variable circumstances, new additions, and job transitions, our needs for insurance will also evolve. Additionally, economic fluctuations and external circumstances that influence your insurance policy will need frequent re-evaluation to ensure that you are making the most appropriate and financially favorable decisions. Perhaps you aren’t sure whether you should conduct an insurance audit or not. The following scenarios are usually a good indication that you should thoroughly assess and review your current policy contract:
- Bringing new life into your family? A new baby may not only prompt you to adjust your beneficiary information, but it is likely to change or influence your coverage needs.
- Changing jobs? Probationary periods may not provide the same level of disability or accident insurance.
- Is your policy nearing the end of its term? Be sure to compare prices for new policies as they can sometimes be more affordable as compared to renewing the current plan.
- Has your marital status changed? Your insurance policy will likely need updating to reflect such.
The specific type of insurance policy you carry as well as personal details certainly influence coverage and premium prices, so if any of the following factors apply to you, be sure to update your policy accordingly. You might be eligible for a rate reduction.
- Changes to your overall risk assessment like smoking cessation, dangerous hobbies, high risk profession etc.
- If you have experienced improvements to a previously diagnosed health condition.
- Do your policy’s investment options still fall in line with current market conditions?
- Have you used your insurance policy as collateral for a loan? Once that loan is paid off, collateral status should be taken off the policy.
Insurance policies generated for business purposes should also be regularly reviewed to make sure the policy still offers adequate coverage to meet the needs of the company and includes the appropriate beneficiary information. With life happening so quickly, it can be easy to forget about keeping insurance policies up to date, however, major changes can have a profound impact on coverage and premiums. Be sure to conduct insurance audits often to ensure your policies are still meeting your needs.
Contact us to see how we can help.
Get in Touch
About Gordon Malic
Gordon Malic has been offering clients financial advice since 1987. He is a certified financial planner, investment advisor and vice president/private client division at Mackie Research Capital. He is also the founder of Charter Wealth Management Inc., which is a company focused on providing risk management and investment strategies to owners and managers of private and public companies.