Everything you need to know regarding COVID-19
Safe Pacific Update ⚓️
- Our team has been safely self-isolating at home for 7 days and show no symptoms.
- We are set up to work from home and are available to support you via email, Zoom or phone. We are not accepting in-person meetings until further notice
- The insurance and investment firms that we work with are all up and running and have put in place their own COVID-19 mitigation plans. We continue to be updated by our supplier partners a few times a week as events unfold. All services are available - some might take additional time.
- Monday Morning Mixup is paused right now because we can't get together to film. We are working on alternative plans to get this video series back out to you ASAP.
- Our business network of professionals is resilient and we are still meeting (virtually) on a weekly basis. If you need something, someone in our network can probably help you.
The Importance of Self Isolation
If you are not self-isolating yet please start immediately.
Here is a message from Nurse Jenny @ VGH Vancouver General Hospital
begging you to stay home and self-isolate.
Insurance Coverage
This is general advice. We are happy to speak about clients' specific situations by email, phone or Zoom.
Coverage for something like COVID-19 would fall under your disability insurance policy. If you get sick and are unable to work for longer than your "waiting period", your disability insurance will kick in and pay a set monthly benefit.
You may have stand-alone disability insurance and you may have disability insurance under a group benefits plan with your employer.
If you need to make a claim on your insurance we are here for you. Please reach out via phone or email and we can take next steps.
If you don't have a disability insurance policy, yes you can set one up now. We are also getting a lot of calls about this right now.
Schedule Zoom or phone call here ⬇️:
Schedule an Appointment with us
Income Replacement During Illness From
⚕️COVID-19 For Physicians ⚕️
Physicians’ Disability Insurance PDI is a government-funded plan that is free to physicians, you just have to apply for it. And IncomeProtect is the regular physicians' DI plan comparable to plans offered by insurance companies.
(Note - we do not offer this. You must get it from Doctors of BC here ⬇️)
Income Replacement During Illness From COVID-19 For Physicians:
- For physicians enrolled in the government funded Physicians’ Disability Insurance (PDI) plan, coverage of up to $6,100 will pay out after 14 days of illness, or from the first day of hospitalization. This payment will be reduced if claimed in conjunction with other insurance. Details will be confirmed by the insurer on a case-by-case basis at the point of claim.
- For those enrolled in the Doctors of BC Disability Income Insurance or IncomeProtect plan, coverage will pay out at the amount purchased, between 28 to 120 days of illness depending on the option selected at time of purchase.
Income Replacement During Quarantine:
- For Physicians Quarantined Due to COVID-19 Exposure in their Occupation:
- PDI - For physicians enrolled in the government funded PDI plan, coverage of up to $6,100 (non-taxable) will pay out from the first day of quarantine or self-isolation. APS required.
- QIR - Physicians who are not enrolled in the PDI plan, qualify for the negotiated Quarantine Income Replacement (QIR) benefit. This benefit will be administered by Doctors of BC’s insurance department, and will pay out for a maximum of two weeks in the amount of $3,050
For Physicians Quarantined Due to COVID-19 Exposure outside of their Occupation:
- Physicians enrolled in the PDI plan may claim for their time in quarantine or self-isolation, under the same parameters as noted above.
- The QIR benefit is not available for non-occupational exposure
Canada's COVID-19 Economic Response Plan
The Government of Canada has announced a massive aid package to both workers and employers during these tough times. This includes aid for employees and business owners. The official page is here ⬇️
Canada's COVID-19 Economic Response Plan
Selected Points for Employees:
- Income Support for Individuals via EI Employment Insurance
- Flexibility for Taxpayers
- Mortgage Default Management Tools
Selected Points for Businesses:
- Helping Businesses Keep Their Workers
- Flexibility for Businesses Filing Taxes
- Wage Subsidy: The Govt will cover up to 10 percent of wages for 3 months
- Work-sharing program: the timeline has been extended for up to 76 weeks
- Ensuring Businesses have Access to Credit
Access all of this via your My CRA Account
EI benefits and Services
These benefits have been announced, but won't be rolled out until April. More details are yet to come. Here's what we have so far:
- COVID-19 emergency benefit will be available for employees affected by Coronavirus self-isolation or quarantine.
- EI waiting period will be cut
- Documentation requirements will be loosened
- Benefits will be extended to workers who wouldn't normally qualify for EI,
- Apply right away - there will be huge demand so get your application in early
- If you were laid off from work you can apply for EI through regular channels
- Emergency Support Benefit will provide up to 14 weeks of support for those don’t qualify for EI and who face unemployment
- Emergency Care Benefit: will provide up to $900 bi-weekly for up to 15 weeks for those who don’t qualify for EI and who don’t have paid sick leave
Note - the application website and phone number are experiencing massive volume right now so you may have to try and login / call multiple times.
Apply here: https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html
Special Phone Number: 1-833-381-2725
More: https://fortelaw.ca/e-i-and-covid-19-layoffs/
COVID-19 Layoffs in BC- What are the rules? ⚖️
There have already been many layoffs - especially in the tourism and hospitality industries.
Here are some things that both employers and employees should know about lay offs during this time.
(Here ⬇️ are some Outside links to an employment law firm's blog)
https://fortelaw.ca/covid19-layoffs-what-are-the-rules/
https://fortelaw.ca/so-you-have-been-laid-off-what-are-your-options/
Dave Ramsey What should I do if I miss a Paycheque?
We don't normally quote Dave Ramsey or other TV finance "gurus" but he's put out a good resource on what to do if you miss a paycheque.
Business Credit Availability Program (BCAP)
Loans are being made available to Canadian business owners affected by Coronavirus through the Business Credit Availability Program (BCAP). Companies seeking support through BCAP should start the process through their primary bank.
The bank will refer to EDC and BDC their existing clients whose needs extend beyond what is available.
Effective March 18, 2020, new relief measures for qualified businesses include:
- Working capital loans of up to $2 million with flexible terms and payment postponements for up to 6 months for qualifying businesses;
- Line of Credit with BDC for up to $100,000 to be repaid within five years. The interest rate is set today at 3.3%, which is very low for a business loan.
- You must have been in business for at least two years; You must have more than $100,000 in annual gross revenues and should be profitable under normal operating conditions; Owners and/or business should have good credit history;
Full Details: https://www.bdc.ca/en/pages/special-support.aspx
Income Tax Filing Deadline Extended
Personal income tax filings and payment deadlines have been extended. More info on this is still coming. Here's what we have so far.
2019 T1 Personal Returns, the April 30, 2020 deadline is deferred to June 1, 2020. There is no extension for self-employed individuals, the deadline remains June 15, 2020.
2019 T2 Corporate Income Tax Returns – there is no extension to the filing deadlines but see comments regarding Tax Payments below.
2019 T5013 Partnership Returns having a December 31, 2019 year-end there is no extension to the filing deadlines.
2019 T3 Trust Returns having a December 31, 2019 year-end the deadline is deferred from March 30, 2020 to May 1, 2020.
Tax Payments, the CRA has officially noted that ALL taxpayers may defer payment of any tax amounts that become owing on or after today (March 18, 2020) and before September 2020 until after August 31, 2020. This includes tax balances due and instalments under Part 1 of the ACT. No interest or penalties are to accumulate.
More Information: https://www.bakertilly.ca/en/vancouver-british-columbia/publications/taxflash-federal-government-covid-19-economic-response-plan
Mortgage Relief
Canada's big 6 banks (BMO, CIBC, National Bank, RBC, Scotiabank & TD) have all announced plans to let you defer up to 6 months of mortgage payments in these tough times. Note that the mortgage payments are still due, you will just pay them later.
For more details on mortgage relief please speak to a mortgage broker. We are happy to connect you with some great ones who can give advise for your specific situation. Reply to this email for more info.
Again - apply for all of this now because it might take a long time and there will be a backlog.
More:
https://www.cbc.ca/news/canada/toronto/mortgage-covid19-coronavirus-cmhc-stimulus-1.5501125
Financial Decisions
Many of the calls we're taking right now are about money. People are asking what to do and what to invest in. Here is some of our general advice to all right now. If you want specific advice to your situation please schedule a meeting.
- Have some cash - when we made a financial plan with you, one of the first things we did was set up an "emergency fund" of 3-6 months of cash on hand. Now is the emergency and this is the reason we strongly push our clients to have cash on hand.
- Have actual cash in your house - Have some cash in your house in case debit machines and ATMs go down or run out. This may start happening at more and more locations.
- Extend your lines of credit - call your bank now (before everyone else does) and increase your line of credit limit just in case.
- Hold off on making unnecessary purchases. Cash is king right now and for the coming months.
- If you have investments - don’t panic sell because you see them dropping. This is the worst time to make an emotional "sell" decision because you see your portfolio going down.
- Expect that there are going to be a lot of lay offs across Canada in the next 6 months as we go through this. Shore up your business or make sure your employment position is locked up as much as you can. We are expecting that COVID-19 will end in a recession.
- If you are looking to invest in these turbulent times, don't jump into something you don't understand. A lot of people are going to make a lot of money coming out of this crash - but a lot of punters are not. We are taking a broad-based, diversified portfolio approach to investing right now. We are betting on Canada and the United States, and not trying to pick individual stocks. This has always been our strategy and continues to be our strategy.
If you would like to review and update your financial plan, please schedule a meeting here ➡️ https://safepacific.com/schedule/
Beware of Scams and Fraud!
Times of crisis and upheaval are prime-time for fraud and scams.
Not only are people trying to profit off Lysol Wipes and Purell, but look out for financial & medical fraudsters that will pop up all over the internet offering solutions and apocalyptic fears.
Be careful what you click in emails and social media messages. There are crappy people out there trying to get your bank account info, your credit card info, your SIN number, scam Coronavirus charities and fundraisers etc.
Be sure to talk to your parents about these frauds and scams going around right now. Older people are prime targets for email and phone scams.
If you want to Invest
If you have money over-and-above your emergency fund to last you 3-6 months and are looking to invest during this market downturn you can open an account via Wealthsimple
You can do the entire process from your computer - so you don't have to meet anybody in person. (We are available by phone or Zoom if you need help setting this up.)
All of our investments go through the Wealthsimple platform and are professionally managed by the portfolio team at Forstrong
Sign Up Here
Here is what our partners at Wealthsimple and Forstrong have to say about the financial markets now and as we come through this crisis:
Forstrong: March 20 update "Hello Fiscal Stimulus, We've Been Expecting You"-https://forstrong.com/wp-content/uploads/2020/03/Ask-Forstrong-03-20-2020.pdf
Forstrong: Straight Talk on COVID-19- https://forstrong.com/wp-content/uploads/2020/02/Ask-Forstrong-02-28-2020.pdf
Wealthsimple: What the Hell is Actually Going on in the Economy Right Now?- https://www.wealthsimple.com/en-ca/magazine/news-corona-economy
Forstrong: Is this 2008 All Over Again?- https://forstrong.com/wp-content/uploads/2020/03/Ask-Forstrong-03-09-2020.pdf
Resources for Business Owners
Business owners are going to have a bumpy ride for the next few months. We hope that some of these resources that we are referencing can help you too.
McKinsey & Company: Coronavirus: Leading Through the Crisis
Insights on how organizations can respond, and what happens next
"This article is intended to provide business leaders with a perspective on the evolving situation and implications for their companies."
- Coronavirus: Leading Through the Crisis - https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis
- COVID-19: Implications for Business- https://www.mckinsey.com/business-functions/risk/our-insights/covid-19-implications-for-business
- Leadership in a Crisis: Responding to the Coronavirus Outbreak and Future Challenges- https://www.mckinsey.com/business-functions/organization/our-insights/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-challenges
- A Blueprint for Remote Working: Lessons from China- https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/a-blueprint-for-remote-working-lessons-from-china
Harvard Business Review: Lead Your Business Through the Coronavirus Crisis
"Based on our ongoing analysis and support for our clients around the world, we have distilled the following 12 lessons for responding to unfolding events, communicating, and extracting and applying learnings."
- Lead Your Business Through the Coronavirus Crisis: https://hbr.org/2020/02/lead-your-business-through-the-coronavirus-crisis
Bain & Company: A CEO Plan for Coronavirus: Actions to Take Now
"one thing has become clear to executives grappling with the crisis: doing nothing is not an option. COVID-19 is unlike any previous crisis and taking traditional crisis-response approaches will not be enough."
- CEO Plan for Coronavirus: Actions to Take Now- https://www.bain.com/insights/ceo-plan-for-coronavirus-actions-to-take-now/
- Beyond the Coronavirus Crisis: Prepare Now- https://www.bain.com/insights/beyond-the-coronavirus-crisis-prepare-now/
Get Legitimate, Qualified Information. Don't Spread Misinformation.
Beware of misinformation - especially things that get forwarded on social media.
Some of the resources we are following are:
- Government of BC: COVID-19 Provincial Support and Information
- Government of Canada- COVID-19 Information Page
- University of Minnesota - Centre for Infectious Disease Research and Policy
- Harvard Medical School - Coronavirus Resource Centre
- World Health Organization
- Public Health Agency of Canada
- Centres for Disease Control and Prevention
- BC Centre for Disease Control
Stay Positive
Poem: Lockdown
Yes there is fear.
Yes there is isolation.
Yes there is panic buying.
Yes there is sickness.
Yes there is even death.
But,
They say that in Wuhan after so many years of noise
You can hear the birds again.
They say that after just a few weeks of quiet
The sky is no longer thick with fumes
But blue and grey and clear.
They say that in the streets of Assisi
People are singing to each other
across the empty squares,
keeping their windows open
so that those who are alone
may hear the sounds of family around them.
They say that a hotel in the West of Ireland
Is offering free meals and delivery to the housebound.
Today a young woman I know
is busy spreading fliers with her number
through the neighbourhood
So that the elders may have someone to call on.
Today Churches, Synagogues, Mosques and Temples
are preparing to welcome
and shelter the homeless, the sick, the weary
All over the world people are slowing down and reflecting
All over the world people are looking at their neighbours in a new way
All over the world people are waking up to a new reality
To how big we really are.
To how little control we really have.
To what really matters.
To Love.
So we pray and we remember that
Yes there is fear.
But there does not have to be hate.
Yes there is isolation.
But there does not have to be loneliness.
Yes there is panic buying.
But there does not have to be meanness.
Yes there is sickness.
But there does not have to be disease of the soul
Yes there is even death.
But there can always be a rebirth of love.
Wake to the choices you make as to how to live now.
Today, breathe.
Listen, behind the factory noises of your panic
The birds are singing again
The sky is clearing,
Spring is coming,
And we are always encompassed by Love.
Open the windows of your soul
And though you may not be able
to touch across the empty square,
Sing.
Fr. Richard Hendrick, OFM
March 13, 2020
Things We All Can Do to Help❤️
- Self-isolate at home for the next few weeks
- Wash your hands frequently
- Maintain social distancing
- Avoid touching eyes, nose and mouth
- Don't go anywhere where there are lots of people
- If you have fever, cough and difficulty breathing, seek medical care early
- Call 811 if you think you may have COVID-19 and want to get tested or seek care
Contact Us
We are open and here to serve our clients in these unique times. Please reach out if you have any questions - we want to make sure we are here for you and guide you as much as we can right now.
Stay safe,
Laurent Munier
(604) 628-9610 x 1
laurent@safepacific.com
Robert Trasolini
(604) 628-9610 x 2
robert@safepacific.com
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
Related Insights
Your Corporation Has Accounts You've Probably Never Seen
Executive Summary Your corporation tracks three notional accounts, the Capital Dividend Account, RDTOH, and GRIP, that never appear on a statement but directly determine how...
What Happens After You Reach Out to Safe Pacific?
Executive Summary When you reach out to Safe Pacific, a real person from our team emails you within 24 hours with a link to book...
The Protection Playbook for High-Income Employees
Here's something that surprises a lot of people. Some of the most financially fragile households we see are actually very high-income families. Not because they're...
Whole Life Insurance: The Strategy Most People Miss
Most investment portfolios are built around three pillars. You have equities, you have fixed income, and here in Canada, a lot of people have real...
Why High Earners Are More Vulnerable Than They Think
Most people assume that earning more money makes life simpler. More income, more security, more options. But the uncomfortable truth we see every day is...
How to Protect Your Income in Canada with Disability & Critical Illness Insurance
What would happen to your savings, your retirement plan, and your finances in general if you were sick or injured tomorrow and couldn't work? How...
The Decisions Your Future Self Will Thank You For
Most financial plans assume that life stays ordinary and orderly. Your income continues, the markets recover on schedule, your health holds up. But future you...
Liquidity: The Missing Piece that breaks most Financial Plans
Most financial plans look great on paper. Strong net worth, solid investments, a growing business. But here's an uncomfortable truth: a lot of plans don't...
Why Your Finances Feel Disorganized (Even When You're Doing Well)
Here's something we've been hearing a lot in client meetings recently, almost word for word: "I know I should have a better handle on all...
The Estate Tax Bill Most Business Owners Never See Coming
What actually arrives in the estate from a corporate investment portfolio versus a corporately owned life insurance policy. Every projection a business owner sees starts...
Use the Capital Dividend Account to Distribute Tax-Free Wealth
Eventually, every Canadian business owner asks the same question. How do I get this money out of my corporation without getting crushed by taxes? There...
Stop Under-Saving: How to Max Out Your FHSA
Everyone is talking about how expensive Canadian real estate has become. Almost no one is talking about how badly the average Canadian is underusing their...
