life-insurance-policy

Canadians aren’t convinced that their life insurance policies will be there for them in times of need, says a BMO Insurance survey.

Though three-quarters of people have insurance policies, 70% aren’t fully confident their policies will provide enough money to take care of loved ones when they die.

Read: Help families gain financial control

Further, the survey finds 88% of people aren’t familiar with the different types of life insurance options available to them.

Explain to clients that there’s no magic number for the dollar amount of life insurance coverage needed. Go through factors like age, family status, health, level of debt and income with your clients and explain how they play a role in insurance pricing.

When asked when they think is the ‘right time’ to buy life insurance, 63% of respondents stated that the best time to buy is as soon as one can afford it, to take advantage of low premium rates.

Read: Insurers shouldn’t ask for genetic test results

Top reasons for buying life insurance:

  • 53% don’t want to burden their family financially after death
  • 49% are compelled by a sense of responsibility
  • 16% were told by family or friends that they should have it

Read: Don’t ban commissions, says Advocis

Originally published on Advisor.ca
See all commentsRecent Comments

CHARLIE LDA

MGA’s can’t afford to train all their agents , its a changing climate out there.

More agents should use Life Design Analysis to show clients the value of insurance. As a bonus new agents get their training from the software.

Tuesday, October 7 @ 1:00 pm //////

CHARLIE LDA

“88% of people aren’t familiar with the different types of life insurance”

I am not surprised by this stat at all , we developed Life Design Analysis to tackle this problem in the industry.

Tuesday, July 22 @ 9:14 am //////

CARL.LEMIEUX.12

With Insurance companies no longer having captive agents, the training of new agents is left to the MGA. The cost of training and supporting a new agent is very high and MGA’s are reluctant to pay for it. The retention rate is way too low after 4 years to warrant the expenditure by an MGA, unfortunately. Insurance companies have off-loaded many things unto the backs of MGA’s besides training & recruiting. Applications are now printed at the MGA’s or Broker level…saving the insurance company the cost of printing and maintaining stock.

I am currently retired (due to illness) after 28 years in the industry and wonder how some brokers/agents make a living and not be able to explain the various types of insurance. It is a sad state of affairs to see this.

Wednesday, July 16 @ 3:22 pm //////

DONNELLY

It may be time for the advisors to be trained (by their MGA or the Insurance Companies, or even themselves) on how insurance really works and why people purchase the benefits of life insurance and forget about the “price” “cost” issue of trying to sell insurance. I buy and provide insurance coverage for people because I/they love something or somebody!

Wednesday, July 16 @ 3:04 pm //////

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