ADAPTATIONS (or... Changes to the Way Things Are)

Over the years, my mass emails/blog were generally notifications about some adventure that I was pursuing (usually, long-distance yacht races), mixed in with financial planning updates and announcements.  I remain very grateful for the ability to explore the nearby land and waters (and for still being able to provide financial planning advice too!).  Of course, at this time none of us have any major events or travel plans in the calendar.  However, we sure are lucky to live where we do, and I have never been so grateful for the fortune of simply living here on the West Coast of Canada.

Luckily, we are still able to get out and enjoy our playground with direct family.  As a way of sharing some of our life over the past month, here are a few shots of what we have been up to, on a personal level, all with a safe physical distance (driveway bonfire, donating blood, hiking Cowichan River, dinner with Skidlets, sailing on the weekend).

I share these photos to remind us that some things remain the same as before: 

While the way we do business and live our personal lives has certainly changed, the Financial Planning needs of our clients (people like you and me) have not.  We all still require coaching and advice about how to handle our investment and retirement savings, and we require updates and implementation of our risk management planning, including individual insurance. 

Life Happens, and in fact many people are realizing the importance of life and health insurance even more now than ever. 

Even though cash inflow may be reduced for some of us these days, others may be concerned about their family or business partners if something happened to them.  Note that if this is you, we are still able to offer new insurance through virtual applications and regular underwriting. 

Here are a couple of personal adaptations that I have made in my business processes (not to mention working from my kitchen counter) so that I can continue to operate and provide service to my clients:

1. I am now using Microsoft Teams as a virtual meeting platform for all client meetings, to ensure security and regulatory compliance.  While it is not as ‘fun’ as Zoom (ya gotta love those Happy Hours!), it is much more effective for us to screen share and complete secure applications.

2. I am also now using DocuSign for signature requirements for all elements of my business.  A comment about DocuSign: why haven’t I been using this my whole career?  It is so fast and convenient, and most importantly PAPERLESS! 

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Next, I will provide a general summary of adaptations to various issues that affect my clients, including updates and a summary of Canadian Government Emergency Support for Individuals and Businesses as a result of the COVID-19, with helpful links in blue underline.

Investment Markets & Portfolio Planning:

For the best investment market commentary, I refer to the most recent Podcast from Brent Joyce (Chief Investment Strategist at GLC Asset Management) from April 17th, 2020, where he provides helpful commentary to put recent Capital Market swings into perspective.  Here are a few notes from the Podcast:

• These have been some of the most remarkable weeks in investment history and the fastest and most dramatic drops in Equity markets, ever. 

• March 23rd marked the near-term bottom of Equity Markets. March 9th would have been the 11th anniversary of the start of the S&P 500’s record setting Bull-Run.

• Equity markets are experiencing the “Bull within a Bear” rally in mid-April: rising from the ashes as quickly as they imploded. This rally is sparked by faith in Government stimulus (historic in both scale and size).  However, we caution that it seems very unreasonable that the S&P 500 is trading higher today than it was on March 9th, when travel, eating out, and major events were still taking place. 

• Market volatility will remain in the weeks and months ahead. The key is to stay calm and not make knee-jerk decisions.  Know that markets joust between greed and fear.  If you have long-term goals in mind, then stick with that plan.

Individual Life & Health Insurance Planning:

My team and I are available to implement new policy coverage in the areas of Life Insurance and Living Benefits (Long-Term Disability and Critical Illness protection). Here are some adaptations within the new and existing insurance business:

• Canada Life has implemented relaxed rules around the requirements for medical evidence in new applications.  For example, if you are between the ages of 18 and 40, you can qualify for $2M death benefit coverage without vitals or fluids, and for Critical Illness insurance, the same applies for $250K of coverage.

• For in-force policies, and for clients who require some relief on their cash outflows, Canada Life has offered premium payment deferral for 90 days.  In addition, Canada Life is offering the option to temporarily reduce coverage (and therefore premium) for 90 days.

• If these options might help you, let's have a conversation about how I can assist you.

Extended Group Health & Dental Plans:

Now may be a good time to revisit the plan design for your company’s Extended Benefits Plan. Or, if you require financial relief, there are options for you. Let’s discuss the ways that the insurance carriers are adapting to the economic situation over the coming months:

• For in-force policies, current renewals can be deferred for 60 days.

• Canada Life has extended the grace period to 60 days for businesses that require the plan to stay in force but want to defer premium payment.

• Carriers have reduced the minimum number of weekly hours to qualify as a member on an insured benefits plan.

• Credit counseling: Canada Life is absorbing the cost for this service for all Plan Members (see recent GroupLine Newsletter).

• For the month of April, a number of insurance carriers are automatically reducing premiums, for example, Canada Life is reducing premiums specifically for Dental by 50% and Health by 20% (excluding drugs).

• In addition, carriers have recognized the need for improved mental health counseling, and many new resources are available.

Summary of Canadian Government Emergency Support for Individuals and Businesses as a result of the COVID-19.

These programs are constantly evolving, but here is the information that I believe is most relevant to the majority of my clientele (Small Business Owners).  Note that this is an unofficial summary, and these details may change at any time (refer to the Federal Government's COVID-19 Economic Response website for official details and applications):

1. For Taxpayers:

   1. The deadline to pay 2019 taxes has been extended to September 1st, 2020.

2. Canada Emergency Response Benefit (CERB)

   1. Intent: to support workers who have lost their job and income as a result of COVID-19.

   2. Available to both employees and self-employed individuals.

   3. Subsidy is payable up to $500 per week for up to 16 weeks.

3. Canada Emergency Business Account (CEBA)

   1. Intent: to assist Business Owners to cover costs during a period when revenues are temporarily reduced due to COVID-19.

   2. Interest-free loan for one year, up to $40,000.  If repaid in full by December 31, 2022, then 25% ($10K) may be forgiven.

   3. To qualify, businesses need to demonstrate 2019 payroll between $20K and $1.5M (increased from the original payroll range of $50K - $1M).

4. Canada Emergency Wage Subsidy (CEWS)

   1. Intent: to help employers keep and return workers to the payroll.

   2. Subsidy provides up to 75% of the baseline remuneration, up to a maximum of $847 per employee each week.

   3. To qualify, businesses must show at least a 15% reduction in revenue in March (and there are various ways to calculate this reduction).

   4. Today, the Federal Government introduced an online Calculator to assist Business Owners with determining their amounts and previewing their claims.

   5. Applications for this program will be available starting on Monday, April 27th.

5. Canada Emergency Commercial Rent Assistance (CECRA)

   1. Intent: this program seeks to provide loans and/or forgivable loans to commercial property owners who in turn will lower or forego the rents due for the months of April, May, and June.

   2. Implementation of this program requires a partnership with the Provincial Government, and more details are expected within the next few weeks.

Summary of my thoughts today:

I’d like to close this blog post by recognizing the blessings we are counting right now, which minimally include (1) the health and wellness of ourselves, our community, and our environment, (2) stable, respectable Government agencies (politics aside), healthcare and essential services workers, and finally, (3) optimism for a gentler, kinder future of good health and prosperity.