Biggest Insurance Myths: Are You Falling Prey?

The insurance industry is wrought with myths and misconceptions. Some people know that life insurance is important, but don’t really understand why, or at which point in the life cycle it should be acquired. Others don’t actually see the value in it at all and thus leave themselves or others in a financial dilemma when something unexpected happens.  Don’t fall prey to insurance myths. 

Here are the top three myths that far too many people buy into when it comes to life insurance. 

Myth #1: I am young, single, and don’t have any dependents – I don’t need life insurance. 

Reality: Even if you don’t have dependents, you likely have financial responsibilities, so what will happen to these if you are gone? Mortgage, car payments, loans, other personal debts – these will all need to be paid off, so who will these payments fall to? 

What about funeral coverage. Most of us, especially when young, don’t really want to think about funeral planning, but ignoring that fact that these are costly can leave your loved ones in a bind if some form of preparation is not done.  

With insurance, rates increase as you get older, so this is another reason that this myth is not accurate. Even if there are no dependents on the scene right now, things change. When they do, and you decide to finally get insurance, you will pay more. 

Myth #2: I'm better off investing my money than buying life insurance of any kind. 

Reality: Firstly, you need to identify the difference between investments and insurance before you jump to any conclusions, and keep the two separate. Investments involve risk, can include stocks, mutual funds or real estate, and the idea is that the risk will equal reward in the form of higher return. Insurance is primarily a policy that guarantees financial security to loved ones in the event of your death. 

When you invest, there is no guarantee that your money will grow or even remain stable, so banking on this can prove futile if you are not careful or take big risks. On the other hand, some insurance policies can be used as investments (whole life insurance for example) while still providing a guarantee that money will be there in the end if something happens.  

Myth #3: My term life insurance coverage at work is sufficient. 

Reality: Employee provided life insurance varies greatly, so it is critical, first of all, to review your policy and check the coverage limit. Some companies will provide adequate coverage, while others may only cover funeral expenses, thereby leaving all of your other financial responsibilities to your loved ones to take care of. 

Secondly, even if you feel as though your employee provided insurance is great, what happens if you leave the company or lose your job? Perhaps you feel stable in your current position, but you never know what could happen down the line and your coverage won’t follow you if you leave.  Additionally, if you leave at a later date and then search out coverage to supplement or replace a new employee provided policy, your rates will be higher (rates go up as we age). 

Insurance is a complex entity, and it can be easy to fall prey to the common misconceptions about it. Not knowing what type of policy you need or the amount of coverage can be easily remedied by talking with an insurance advisor, but avoiding insurance all together is a bad idea! 

For more about common insurance myths and how to avoid falling prey please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca.  

Factors that Impact Health and Life Insurance Coverage

When searching out insurance providers, it always helps to have some knowledge in your pocket. When you purchase life insurance, your premiums are based on a number of different factors, and when it comes to breaking down cost it can be really tough to get a real sense of why your rate is what it is. In an effort to help you navigate this confusion we thought we’d provide a breakdown of the most common factors that impact health and life insurance coverage. 

Age: The older you are, the more you will pay – this is just a fact of life, based simply on the fact that when you are young you are less likely to pass away. This is why it is important for younger individuals to purchase life insurance early.

Current Health: Some companies nowadays promise coverage without a medical exam, but others require it as a precursor to providing coverage. Why? This exam checks for any health concerns that may signal future problems (high blood pressure for example). Weight is also part of this – if you are overweight this may become problematic (if it isn’t already). Any negative aspects will lead to higher rates.

Gender: Gender equality is important, but when it comes to insurance your gender does play a role with regard to life expectancy. Typically, women live longer than men, and so women usually pay lower rates. 

Health and Family History: Any history of disease, chronic illness, or other potential health problems either in your own health history or your family health history, is perceived as a risk factor, and will thereby increase rates.

Smoking or Drinking Habits: It is a well-known fact that these can contribute to less than ideal health, so if you smoke or are a heavy drinker, expect to pay a little more.

Occupation: Again, it is all about risk here. If you skydive for a living your rates are likely going to be a bit higher than someone who sits behind a desk all day.

The Policy Itself: Every policy is different, and so it is important to know what you want and need as far as insurance, as well as how this will impact rates overall. Make sure you discuss all of your options, including the term, the amount of the death benefit, and the type of insurance, with your insurance advisor before you decide which policy is right for you.

An easy way to remember these things is by thinking about risk overall. An insurance company needs to evaluate risk and so if something seems risky, you are probably going to pay more.

For more about the factors that impact health and life insurance coverage please contact Independent Financial Concepts Group today by calling 1-416-849-1653 or visit www.wecoveryou.ca. 

Competition: Keeping Up With Insurance Industry Trends

Recent reports within the insurance industry have had a lot to say about the many changes taking place and their corresponding impacts. Competition is growing even fiercer as technology improves, and keeping up with these changes is critical. If you work with an MGA, it is imperative that there is a plan in place to counteract any revolutions within the industry. 

Here is our list of the top 3 insurance industry trends for 2013, what they mean for you and how to handle them. 

1.      Newest technology and programs. Advisors across Canada as constantly working to keep up with the newest technology and programs being released every month (and if they are not, chances are they are quickly falling behind the rest of the pack). Keeping up-to-date and up-to-speed can be tough, but if your MGA employs the newest programs and offers training to help you become efficient using them, you are already ahead of the game. Those managing general agents interested in their own success will provide this. Social media is also a part of this – don’t discount its power. Make sure that your MGA takes advantage of social media – you will benefit from a strong online presence.  

2.      Mobile and online quotes. Canadians are turning to their mobile devices far more frequently than in the past to complete everyday tasks – and this includes buying insurance. This creates some stiff competition, as well as increasing the need for rapid response (call-backs, processing of applications) and the ability to offer far more selection. As an advisor you need to be able to compete. Investing through insurance is becoming even more popular (i.e. segregated funds) so you need to make sure that you are able to offer a wide array of products – not just insurance. Social media plays a role here to – clients using mobile devices need to be able to find you. If they can’t that could mean a potential client lost.  

3.      Confidentiality in a digital world. Confidentiality has become a big problem in the insurance industry, even more so for independent advisors. Nowadays you have to be sure that client information is incredibly secure. If you work with a managing general agency make sure that they have technological programs in place to protect client information. Anything you take from a client has to remain secure within your system. If it doesn’t that could mean big losses and potential liability for both you and your MGA.

 

No matter what industry you work in, tech advances and industry changes can wreak havoc on traditional modes of conducting business. It is no different in the insurance industry, so be sure that you are keeping well-informed of these changes and implementing strategies to utilize and make the most of them. 

For more information about insurance industry trends and how they will impact you please contact Independent Financial Concepts Group at 905 202-8430.

Be In The Know: Top 5 Tips When You Buy Life Insurance

Life insurance is a must for the future, but it isn’t something that you should just purchase at random – you need to be prepared. When you buy life insurance, you are doing so to protect yourself and your loved ones in the future, so take the time to get the policy that best suits you.  

Want some advice? Here are our top 5 tips to consider when you buy life insurance: 

1.      Know what you need. This is the most important step, and these needs have to be clear before you even start looking to buy life insurance. Think about what you want the insurance for, who is or may become dependent on you in the future, long-term financial and life goals, and retirement income. A good insurance advisor will ask you about these things so it is important to reflect on them carefully. 

2.      Do your research. Before you buy life insurance it is smart to understand the differences between each policy and what the pros and cons are for each type of insurance. If you don’t understand the differences, ask. Whole life insurance is insurance for your entire life whereas term life covers you for a specific period of time. Other insurance plans may be more suited for investments – you need to be clear on what you are buying and why. 

3.      Don’t buy direct. When setting out to buy life insurance, never go directly to the insurance company – they can only offer you their products, their services and their prices (there is no room for comparison here). Also, because they are more interested in their own needs than yours, they will try to sell you all the unnecessary bells and whistles – don’t buy into this. 

4.      Work with a broker. Instead of going direct, work with an insurance broker. An insurance broker with access to a number of different companies can comparison-shop for you, offering you the policy that meets your needs at the best rate. They will also be able to offer various products, and you can be sure that you are more than just a number – their success is based on your satisfaction – so they need to be sure that you are happy.

5.      Don’t let price dictate your decision. When you buy life insurance, price should never be the determining factor. There are many cheap policies out there but cost often reflects quality – and so don’t go cheap. That being said, the right insurance advisor will be able to explain the differences in price and how each policy works. 

When you buy life insurance, make sure that you are getting exactly what you need. Let these tips guide your search. 

For more tips to use when you buy life insurance, please contact Independent Financial Concepts Group today at 416-849-1653.

Cost or Quality: The Cost of Life Insurance & Life Insurance Benefits

A common misconception with life insurance – and the reason that so many fail to secure it at the right time – is that they do not see adding the cost of insurance to their budget as a must, unlike other insurance such as car insurance. This is especially true with younger consumers. The actual cost of life insurance is far cheaper than many believe – and when you factor in all of the benefits that different life insurance policies carry, these seriously outweigh the financial cost to be insured. So what is stopping some Canadians from seeking out their own life insurance? 

The most common myths – that insurance is too costly, that it isn’t necessary ‘right now,’ or that it is just a way for insurance companies to make money – often keep people from even looking into the life insurance benefits that will become necessary later in life. A recent Financial Post article confirms that these misconceptions exist – but that they shouldn’t, stating that all Canadians should have some form of life insurance to protect their future. 

The Financial Post article went on to say that it is especially important for younger Canadians to secure life insurance – for more than one reason: “Not only does insurance give people with young families piece of mind, but the reality is, teenagers, and even children, should have policies to protect their parents from financial burden too.” 

Not only is it smart to get that protection in place for the sole benefit of financial security for loved ones, but the younger the person is when purchasing the policy, the cheaper the premiums. And depending on the type of insurance, these premiums may remain fixed for the entire duration that the policy is in place. 

Another big reason that people don’t seek out their own life insurance is because they have a false sense of security that they are covered through their employer’s group policy. The reason that we say false sense of security is because most life insurance offered through company group policies will cease when you stop working for the company. Insurance is more expensive as we age so if you lose your job you will be facing higher premiums later when seeking out your own life insurance coverage.

So what is stopping you? Is price the determining factor when purchasing life insurance? It shouldn’t be. The real cost of life insurance should not actually be determined until you speak with an insurance advisor. By doing this, you are able to ask the relevant questions and work with the advisor to determine the best policy for you. And when you are given the cost of the monthly premium you need to consider what the end result of the policy brings. Quality needs to be measured, and if your insurance advisor has developed the right policy for you, the cost of life insurance won’t seem nearly as high as you originally thought.

No matter what age you are (as the Post article discussed), having some kind of life insurance is a very important part of your financial planning for the future – whatever your goals may be.

For more information about the cost of life insurance and life insurance benefits, please contact Independent Financial Concepts Group today at 416-849-1653.

Freedom of Independence: Your Career as an Insurance Advisor

The freedom of independence that can come from a career as an insurance advisor is a big draw for many individuals. The flexibility and choice can mean big gains if you are willing to perform – but what if your MGA is not as willing?  You need to be sure that the managing general agency you choose to work with is the right one. There are vast differences even between individual managing general agencies, so it is important to do your homework to ensure that your choice is one that will allow you to maintain your independence while still helping you achieve your future goals. 

Independence innately implies a level of autonomy, but that shouldn’t mean you have to do everything alone. By working with the right managing general agency you can have access to the support that helps you achieve without taking away your self-sufficiency or freedom. Office space is also important – if you work from home the majority of the time, or on the road, it is still important to have that space available. The best MGA should provide this.

Another part of this independence involves your clients. At the right MGA, your clients are your own, and they are vested to you immediately. That is the only way that you can ensure continued stability. When you have worked hard to gain a strong and stable client base no one should be able to take that away from you. By having your clients vested to you immediately you save yourself the hassle of trying to get them back if you ever decide to leave, and you can be sure that those clients are always receiving the highest level of support that you pride yourself on.

Responsiveness is crucial in the industry, no matter where you are, and it can make the difference between lost sales and made sales – every time! Make sure that one of the commitments your managing general agency makes is to respond to your calls promptly. After all, if your clients have to wait for you to return a call they may not be satisfied with the level of service they feel they have received. Your applications also need to be processed quickly, so your managing general agency should have a plan in place to ensure this as well.

As an insurance advisor working with an MGA your independence should not be an impediment to success. Make sure that your managing general agency provides you with the tools necessary to earn while still remaining free from constraints.

For more information about how the right MGA can give you the freedom of independence please contact Independent Financial Concepts Group by calling 905 202-8430.

Retirement Income Planning: Ask Your Insurance Advisor

Retirement income planning is very important but can feel overwhelming as there are so many considerations. Will you have enough income, do others depend on you financially, who will you live with and will they be able to provide long term care? These are all questions that will have to be answered when you start your retirement income planning.  

Retirement income planning should not be taken lightly – after all, it will be the income that supports you after you stop working – so you should be sure to consider the various different options that exist to give you the most sustainable source of income. These options may include maximizing on your investments and insurance. One important vehicle for retirement income planning is life insurance.  

Life insurance as part of retirement income planning: With a whole life insurance policy, not only do you have life insurance coverage for your entire life, but you can also use that policy to build wealth and generate capital for the future. Whole life insurance combines an insurance policy with an investment component. When you retire, the cash value of your policy can be taken out and can then be used for whatever you need, whether as a loan or just paying for regular monthly expenses. And you have options for paying back this money – making it all the more convenient.

Universal life insurance is also a smart retirement income planning tool. This type of insurance provides income in the future through tax incentives. As a way to grow your savings, universal life insurance works to invest funds in a managed investment, giving you pay-outs you can use once you retire. Like whole life insurance you can use this money for whatever you want/need.

Why do these work? Any money you save for retirement is important, and with the various options out there it can be tough to decide which option will work the best for you. With life insurance, there are many benefits. The forced saving helps many – and if you contribute additional funds monthly, that’s even better. Even more important is the fact that these retirement income planning methods are tax protected – meaning that if you don’t withdraw funds you are not charged, and chances are good that when you retire you will be in a lower tax bracket and thus charged far less.

Retirement income planning is not something that can be accomplished on the verge of retirement. Speaking with an experienced insurance advisor – one who can explain and offer all of the various products to help you save – is a smart way to get started on the road to riches.

For more information about retirement income planning and using insurance as an investment for the future, please contact Independent Financial Concepts Group by calling 416-849-1653.

School is in Session: Plan for the Future with Life Insurance for Children

With school back in session what better time is there to start thinking about an education fund for your child’s future? Right now you tell them that they can be anything they want to be when they grow up – but what about when high school graduation rolls around and they have their sights set on post-secondary education…

Here are the facts: the average cost of post-secondary education in Canada rises steadily every year. For the 2011/2012 school year the average cost of tuition for an undergraduate student at a Canadian university was $5366, and at a Canadian college $2600. And that’s just the classes. For most undergraduate (university) programs, the yearly cost of books ranges from $800 to $1000, or a little less for college programs. And these costs don’t factor in the cost of living – which rises when your child goes to school out-of-town. Add on at least a few thousand dollars more if they are not living at home during this period.

Every parent wants to be able to provide for their children, including their education, but when it comes to saving many just don’t see a way to do it. Here is where the benefits of life insurance for children come in. By purchasing a life insurance policy for your child when they are still in grade school, you are essentially providing for their future no matter what they want to do. Low monthly premiums make it easy to set that money aside.

Think about it this way: the average post-secondary education today runs about $25000 for a degree. The average policy, with low monthly premiums, can garner a cash value to be used to pay that entire amount. By taking out life insurance for children, you are effectively securing those funds so that your child can avoid student loans and benefit from an education that gives them a fresh financial start once complete.

What if they choose not to pursue a post-secondary education? The money saved through that life insurance policy can be used for many other things: buying their first car, a down payment on a home, traveling the world, etc. That cushion provides the stability when they first start out that lets them breathe that much easier. With life insurance for children, you can save for your child’s future without stress.

For more information about securing education savings through life insurance for children, please contact Independent Financial Concepts Group today at 416-849-1653 or visit us at www.wecoveryou.ca.

Life Insurance Basics: How Life Insurance Works

Whether you have a family, a business, or others who depend on you, you already know how important it is to have some financial protection for them. Life insurance is a smart choice – but that doesn’t mean that it is simple. If you want to understand how life insurance works, the first thing you need to learn about are the many different types of life insurance. This blog is going back to the basics – giving you the information you need to make the right decision regarding that financial protection for your loved ones. 

There are three basic types of life insurance – term life insurance, whole life insurance and universal life insurance. 

Term life insurance is the most affordable life insurance product available. It is based on your wants and future goals. The length of the policy is chosen by you, usually from 10-30 years, and over the course of your policy your premiums remain the same. The amount of the policy is also determined by you, based on your budget and what you can afford each month. When the policy ends, you can choose to renew it or let it end.

Whole life insurance is more expensive than term life insurance but this is because it covers you for your entire life, rather than a pre-determined period of time – you are always protected. That doesn’t mean however that you are locked in – whole life insurance is flexible, and you can change the policy if needed as time passes. Your premiums do not change over the course of the policy, and as you pay into the policy, that money gains value which you can cash out or borrow against in the future.

Universal life insurance is a type of life insurance that many individuals use as an investment tool as it carries tax incentives. As you contribute to your policy through monthly premiums, that money grows and gains in value, while also keeping you protected. Additionally, universal life insurance is protected from creditors and probate, meaning no stress for your loved ones in the future.

The type of life insurance you choose will depend on your personal circumstances and both short and long term personal and financial goals. Once you determine the type of life insurance you need, next you will have to consider the type and length of the policy.

Now that you know how life insurance works, your next step is to look at getting some quotes. When it comes to getting quotes on life insurance it is important to strike the right balance between cost and benefits. The best thing to do is to speak with an insurance advisor – speaking with an insurance agent who works for an MGA and not for a specific insurance company will enable you to learn what all insurance companies are able to offer. 

Once you have decided on and purchased a policy, as long as you pay your monthly premiums, you are protected for the length of the policy. If necessary, you will need to renew the policy or depending on the policy, change it as your needs change. In the event of your death, your loved ones (those listed as beneficiaries) will receive the money held within the policy.

To get started on protection for the future, to find out about the different types of insurance or to learn more about how life insurance works, please contact Independent Financial Concepts Group at 416-849-1653.

Protection That Lasts: Long Term Care Insurance

Life insurance at any age is important, but the older we get, having the right coverage grows in importance. Financial protection for later-life health concerns gets increasingly significant as time passes, and so making sure that you have plans in place to help you cover these expenses is crucial. The best way to ensure that you will not suffer from a lack of financial security as health issues arise later in life is through long term care insurance.

What is long term care insurance? Long term care insurance is a type of insurance product which protects you in the event that you require medical care or assistance later in life.  This assistance may include: in-home nursing care, rehabilitation or therapy, personal care or in-home services such as cooking and cleaning, or having another person there to watch over you and help you when needed.

Maintaining your independence is an important part of the aging process, and with long term care insurance you can be sure that this independence remains intact. If you suffer from an illness or medical condition that necessitates assistance, being able to manage it on your own is vital. Long term care assures that you do not become dependent on your family members and instead can use the money from your long term care insurance to pay for the services you want or need. The money may also be used to move into a long term care facility, thereby giving you the freedom and flexibility to keep your independence.

Long term care insurance benefits become payable when you become unable to perform two or more daily activities because of a decline in either a mental or physical capacity. These tasks include things like bathing and dressing, transferring (ex. from the bed or a chair) or feeding.  If you require assistance with these tasks, your long term care insurance policy can cover the costs.

As with any insurance product, long term life insurance plans differ, both depending on the insurance provider and based upon your own wants/needs. These differences may include the amount of coverage or the length of that coverage. In order to ensure that your individual plan is best suited to you, the best route to take when researching plans is to speak with an experienced insurance advisor. They will be able to walk you through all of the different benefits and plan options to make sure that you are granted the best protection to last.

For more information about long term care insurance and how it will protect you in the future, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit us online at www.wecoveryou.ca  

Diversity – A Managing General Agent’s Key to Your Success

In today’s insurance industry, being able to offer the best service to your clients is a crucial factor on your path to success. Diversity is a major part of this – so make sure that as an insurance advisor you are able to offer a diverse service. Working with a managing general agent is the best way to do this. The flexibility this offers, as well as the chance to work with a plethora of companies (rather than just one), will equal big gains.  

Diversity means the ability to access a wide range of insurance companies and offer a wide range of products to your clients. It is not difficult at all for a potential customer to head online and find a quote for insurance. So many customers, even after hearing about the ‘best price’ your company can offer, may jump online and compare. If your company’s best deal can be beaten, what is stopping that customer from choosing the competition? Nothing.

Working with a managing general agent gives you the flexibility to find clients the best insurance that meets their needs effectively. Clients that know that you are obtaining quotes for them, considering all insurance companies, are less likely to feel the need to jump online to shop around as they will be getting all the information that they need in one place.

While many consumers buy insurance based on price, price should not be the only deciding factor, so it is critical to be able to run through a variety of difference policies, explaining the benefits of each in order to help them make the most appropriate decision. It also pays to be able to work through the wealth of companies that your managing general agent works with to find your client the most suitable policy for the best price.

Diversity also means being able to offer a wide array of products. If your insurance company only offers one type of insurance, how can you attract those individuals looking for something different? You can’t. And what about returning clients looking to expand their portfolio? Many people will not go with a company that cannot offer everything that they need, or will need, and will switch if they find a company that can.

Working with a managing general agent gives you the power to offer a suite of services and products. Insurance, investments, etc. garner great end results for you – and mean customer retention. If your clients return to you for a new product and you are able to offer it to them, this means more money in your pocket and perhaps even more business in the future.

Working with an insurance company guarantees that company’s ability to make money – but not necessarily yours. Diversification comes with the power to work outside the box – something that you cannot do as an agent at an insurance company. Instead, join a managing general agency and see your success realized.

For more information about how diversification = big results, or why a managing general agent is the way to go, please contact Independent Financial Concepts Group by calling 905 849 1653.

Pros and Cons of Dual Licensing: Toronto Managing General Agent Weighs In

As an insurance advisor, you have to be on your toes to remain competitive. Where to work and who to work with is probably the most important as this will often dictate your own level of success.

The financial industry is tightly woven and mortgage agents and brokers, insurance advisors, financial professionals, realtors and other financial professionals often travel in the same circles, enjoying the same clients. For example, someone who is purchasing a home will need a realtor, a mortgage agent, and insurance advisor and even a financial planner to make their financial dreams a reality.

This leads many professionals to pursue dual licensing in order to retain a bigger piece of the “market” pie. It can be difficult to decide if dual licensing is right for you, so we’ve decided to weigh in and give you some of the pros and cons to dual licensing from the perspective of a managing general agent.

Dual licensing, or having both an insurance license and another license, gives you an opportunity to sell more products and increase your customer retention because your clients will come to rely on you for more.  Here are some examples: a mortgage agent can also be a realtor, an insurance advisor can also be a mortgage broker, a mutual fund advisor can also be an insurance advisor, etc…

Arguably the biggest pro that comes with dual licensing is your versatility. When is it ever a bad thing to be able to offer your clients a plethora of products to suit both their insurance and investing needs? In order for your own portfolio to grow, you want to be able to offer clients the most services and products. At the same time, if a client comes to you with a question, it is always better to be able to answer it yourself rather than having to turn to someone else and wait for the answer. Dual licensing offers this stability, since your training and experience will allow you to serve clients with a much larger suite of services coupled with the ability to explain all of these services and their benefits.

All of this being said, a common ‘con’ is the fact that some claim that the somewhat tenuous regulatory system for dual licensed advisors fails to protect clients. When there are too many things going on at once it becomes difficult to keep track and be on top of your game. Some feel that you can’t be all things to all people. In order to take advantage of dual licensing while at the same time soothing your clients’ concerns, consider working with a managing general agent that is committed to monitoring and regulating dual licensees. This also works to ease your mind because not only are your clients protected, but so are you. So, if you are a mortgage broker for example (as a core business), a good managing general agent will keep you up to date and in the loop with respect to professional development and this includes ensuring that you are aware of the most cutting edge insurance products and changes with respect to regulations.

Dual licensing is not for everyone, but if you are seriously thinking about it and would like more information, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.joinifcg.com.

How to Use Social Media Effectively: Everything an Advisor Needs to Know

Social media is an essential tool in the insurance industry, and as a result your managing general agency should use it to its full potential. If they are not, chances are there are others out there that are. But just taking advantage of it and using it effectively are two different things – so we’ve compiled a list of tips to help ensure that you are getting the most from this cost-saving, client engaging, mass marketing resource.

Firstly, if your MGA isn’t on social media, they are missing a huge market to establish recognition of the brand which impacts your online credibility as you are trying to land new business under that brand. If the company you work with can’t be found online, and we don’t just mean your company website, your credibility can take a nosedive. Clients now rely heavily on social media when making purchasing decisions and the influence of those in their social networks.  In our social world, clients like to search on platforms such as Facebook and Twitter to see what others are saying – so you have to make sure that they can find you there.

But just having a presence doesn’t cut it anymore, and in order to be effective there are a number of tasks that need to be accomplished. Your MGA should be releasing unique and relevant content on a regular basis, to a number of different sites.

Having a well-rounded presence on major sites like Facebook, Twitter, LinkedIn, Google+, Pinterest, etc. is very important. Most people prefer a particular site or two, so if your MGA has not cast a wide net, recognition of the brand will be diminished.

LinkedIn is an important social media resource that insurance advisors should take advantage of. This professional platform allows you to connect with professionals in related industries which can result in a gold mine of referral business. LinkedIn is also fantastic for establishing your own credibility. Properly linking your page to your corporate brand, pursuing recommendations and skills endorsements can not only ensure that prospects can find you LinkedIn but can also validate your professional credibility.

Also, your MGA’s conduct on social media and your personal conduct when using social media is very important. Remember that both you and your MGA should ensure that your conduct is professional and non-combative. It is always to consider that posting is similar to standing on the street and shouting out the information. Think before you post. Is what you are posting something that you would verbalize if you were face to face with someone? If your MGA is posting polarizing opinion pieces on social media this could not only be damaging to you but also damaging to the brand you are representing.

Internally, social media is also a great tool. The independence garnered by working with an MGA can come with pitfalls if your MGA doesn’t manage them correctly, but by giving you access to different company social media platforms you can keep up to date on current events within the company and direct clients to pertinent articles. This keeps the level of engagement up even when you are not in the office.

The power of social media can no longer be ignored, and to avoid it can mean dangerous consequences. Make sure that, as an advisor, you are taking advantage of all that it has to offer and using it effectively.

To find out more about how to use social media effectively in the insurance industry, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.joinifcg.com.

Segregated Funds 101: Segregated Funds vs. Mutual Funds

Investing your money always comes with a sense of worry no matter how experienced you are. If you have no experience, that worry gets exponentially greater. A great way to ease the anxiety over investing is to gain a deeper understanding of the different types of investments. Right now, segregated funds are growing in popularity thanks to their many benefits, but some consumers find themselves wondering what are the difference between segregated funds and mutual funds? Here we undertake to explain the differences so that you can go forth into the “investment sunset” with your head held high.

What are segregated funds and mutual funds? Segregated funds are investments held with an insurance contract, kept entirely separate from the assets of the insurance company. A mutual fund is an investment that a group of people pool money into, hiring a manager who invests the money in various stocks, bonds or other securities. Both are professionally managed.

There are several differences between segregated funds and mutual funds. Firstly, segregated funds are sold solely by life insurance companies. You have many of the same choices with a segregated fund as you would with a mutual fund, including bond funds, equity funds and balanced funds.

One major difference between segregated funds and mutual funds is the fact that segregated funds have a maturity date – mutual funds do not. The benefits of a maturity date, be it 15 years for example, is that if you hold the fund until that date, you are guaranteed to get money back. Although the amount varies depending on how the fund performs, although unlikely - unlike mutual funds you don’t stand to potentially lose everything that you invest.

Another fundamental difference between segregated funds and mutual funds is the guaranteed death benefit. Whereas with a mutual fund the estate or beneficiary will receive the market value of the fund only – there are no guaranteed minimums – a segregated fund pays a guaranteed amount to your beneficiary. This means that there is a guaranteed benefit upon your death no matter what the market value is.

A third difference with segregated funds is that upon your death, the benefits are paid directly to your beneficiary, rather than becoming an asset of the estate, which is the case with mutual funds. This also means that typically a segregated fund is protected from creditors, whereas a mutual fund is not. There’s also the possibility that they are private in a segregated fund.

Remember: segregated funds take some of the risk out of investing, so if you are thinking about investing but are unsure which path to take, consider segregated funds. Talk to an advisor about your goals for the future and to get an even better understanding of how segregated funds could be the answer to your investment plans.

For more information about segregated funds vs. mutual funds or to find out more about smart investing tips, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

 

 

 

 

 

Personal Insurance Focus: Is Whole Life Insurance the Way to Go?

When it comes to personal insurance, many Torontonians are unsure about what to look for in an insurance policy. Many people are not exactly sure what to expect when searching out policies, or what the difference between policies are. For most people, term life insurance is the type of insurance that most comes to mind – but there are many others that are important to consider as well. One type which is highly advantageous is whole life insurance.

There are many benefits to whole life insurance. If you are thinking about going this route, here are some important things to consider:

Whole life insurance is permanent. When you pay your premiums, your policy continues on, guaranteed – it does not expire. This means that you are protected for your entire life. Unlike term life insurance, which protects you for a term decided upon at the time that the policy is put in place, you don’t need to renegotiate or alter your plan once that agreed upon period comes to an end. You also don’t need to worry about the policy ending and you not being covered.

Whole life insurance premiums won’t increase. When you decide on a policy that meets your needs and the policies are set, these are the same premiums that exist for the entire policy, unlike with a term life policy where premiums increase as you age or if your health deteriorates. When an initial term life insurance policy ends, and you renegotiate, those premiums will be higher because the risks to the insurance company are higher. In a way, this means that you are actually saving money as the whole life insurance policy doesn’t increase even with inflation.

Whole life insurance forces you to save. When you choose whole life insurance and pay the premiums, those policies build up a savings account (also called a cash value) which grows over the years and can be cashed out at retirement or borrowed against if you need to.

Whole life insurance is flexible. Although a whole life insurance policy is permanent, that doesn’t mean that the options you decided upon when you first built the policy are set in stone. Rather, whole life insurance is flexible and can be altered to suit your needs as they change, whether that means increasing your dividends or depositing more premiums.

If you are considering personal insurance for yourself, whole lifeinsurance has a lot to offer. That being said, it is often a bigger premium commitment than term life insurance, primarily because of the additional benefits that do not accompany a term life insurance policy. It is important to speak with an insurance advisor to discuss all of your options and goals to best determine which policy suits your individual needs.

For more information about personal insurance and whether a whole life insurance policy is the way to go for your unique needs, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

 

 

 

 

 

 

Professional Development: Does Your MGA Offer Insurance Lead Generation Training?

Whether you are new to the insurance industry or a maverick with years of experience, chances are you are well aware that one of the most difficult parts of your job is lead generation. Finding and securing clients is all part of the work that leads to success, and so being able to do so is crucial if you want to succeed.

Knowing this, how can you expand your insurance lead generation system? Professional development needs to be a serious part of any insurance advisor’s plan for success. With new programs being developed and released regularly, it is important to stay on top of changing trends and to be able to take advantage of all of the opportunities they represent. Lead generation is one such hurdle that needs to be surpassed, and the right MGA should be able to provide you with effective insurance lead generation training to help you get the job done.

Creating networks can be tough, but if you have the right support behind you and the right structured mentoring, establishing the networks you will need to be a successful is more than attainable. By teaching you how to connect to other professionals in related industries can enable you to build a strong portfolio without expensive direct-to-consumer marketing.

Insurance lead generation training should also focus on the opportunities that exist online. Firstly, if your MGA does not have a professional well put together website or established online presence you will not enjoy the brand recognition that others who work for MGAs do enjoy. If a client cannot find you on the internet or recognize your organization when they do you are at a disadvantage. Not being online is the virtual equivalent of not being in the phonebook, so make sure that your MGA offers access to online tools and resources that will enable you to generate leads online. Social media plays an important role in having online credibility, and your MGA needs to have presences that clients can visit and find. You also need to know how to control and utilize these channels, and so an MGA committed to training will show you how.

Innovative and unique approaches to insurance lead generation will keep you one step ahead of the competition. Using a diverse range of marketing strategies will make it much easier for you to build up your portfolio and a good MGA will provide you with the support you need to do it.

Think about it this way – there are MGAs out there that offer proven insurance lead generation training that garners real results – and if you are not taking advantage of them, someone else is. In order for your portfolio to grow, you need the contacts and clients to make that possible.  Make sure that your MGA offers insurance lead generation training to get you the results you need to be successful.

For more information about insurance lead generation training please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.joinifcg.com.

 

 

New to the Insurance Industry? Why an MGA Might be The Right Fit

Starting a new career is often accompanied by an overwhelming sense of choice. This is no different in the insurance industry and if you have just joined the advisor pool you are no doubt aware of the choices that exist. One of the most important choices that you will make, one that can dictate your entire career, is whether to join the right kind of organization.
 

As a new insurance advisor you have three choices:

1.      Work for insurance company which can provide you with an opportunity to be associated to a recognized brand but can come with many limitations.

2.      Work with a managing general agency which can result in incredible flexibility and opportunity if you choose the right managing general agency.

3.      Go on your own which is by far the steepest climb up.  

If you are keen on retaining your independence, keeping things flexible and also having the support of an established organization behind you, then the best choice may be joining an MGA. There are several great benefits to this – but you need to go forward prepared. You can’t just join the first MGA you stumble upon. Do your due diligence because you do not want to make the mistake of signing on with an MGA that is primarily concerned with their own needs is not going to equal solid career growth for you. 

Here are some important factors to consider when choosing an MGA as a newcomer to the insurance industry:

Reputation means everything. In insurance, if you can’t be trusted or relied upon, chances are pretty good that your portfolio is not going to be very strong. It is important to check out the MGA’s online presence, client reviews and contributions on professional social sites like LinkedIn.  

Is the MGA technology savvy? It is important to work with an MGA that gives the tools you need to be successful. When you are starting out every dollar counts so working with an MGA that provides you with your own website, CRM, resources to protect your client’s data and more will set the stage for you to compete in an age where almost everything is done digitally.    

Supported independence means not having to do everything on your own, and professional support is crucial if you want to succeed. Things like a professional office space provided by an MGA gives you the ability to bring clients into an office environment and schedule meetings in an atmosphere that is both professional and welcoming.

 

Speed matters. Your MGA should have a policy in place to expedite applications so that no clients are lost because of the process taking too long, and should give you access to underwriters instead of being blocked from them.

Continuous professional development through training provided by an MGA allows you to keep up to date with the newest technology and software. It also means that you can learn from others in the industry and gain their knowledge in a way that will help you perform. Training on sales tools and lead generation will help you garner sales and create relationships with clients.

Before you make the choice of whether to join an MGA or an insurance company, find out about the benefits that come with working with an agency that not only provides the tools to succeed but also to help you remain independent.

If you are new to the insurance industry and are thinking about working with an MGA, please contact Independent Financial Concepts Group to find out more. Call 416-849-1653 or visit www.joinifcg.com.