More than half (64%) of Canadians buy life insurance, says a new survey by Edward Jones. But few purchase disability (23%), critical illness (11%) and long-term care (11%) insurance.
Yet, most say want to invest to protect the financial well being of their families (68%), as well as their quality of life in old age (61%).
The survey also finds only one third of Canadians (32%) have used an advisor when buying insurance. That’s a mistake, says James McKeown, senior insurance specialist with Edward Jones, since people need guidance when choosing coverage to meet their needs and goals.
If you do have clients who are debating whether to buy insurance, make sure you explain the difference between fully underwritten policies and those that don’t require medical testing. In the October 2013 issue of Advisor’s Edge Report, assistant editor Katie Keir spoke to product providers and advisors about the growing popularity of simple-issue policies and automated approval processes.
Purchasing insurance without help can be risky, finds Elli Schochet, advisor at Al G. Brown & Associates. People can easily fill out applications incorrectly or choose inappropriate products.