Canadians question effectiveness of insurance

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.

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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.

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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

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.