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.  

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.

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.

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.

 

High Yield Bond Investment Returns Against The Risk

Over the last few years there has been an increase in the number of people who are nervous about taking a financial risk with any form of investment. However, with the economy stabilizing, many Canadians have once again begun thinking about investing. Segregated funds, offered specifically by insurance advisors, have become an attractive option for many who have a low appetite for risk. But what if you are looking for a bit more return? A high yield bond offers many attractive benefits with a higher end yield. Whether you are looking to generate income for retirement or just want to invest with less risk than equity investments, a high yield bond is a great option.

What is a high yield bond? Like all other bonds, high yield bonds are debt securities issued by different organizations in order to raise funds. By purchasing a bond, you are effectively lending your money to that organization in exchange for interest and a guaranteed return of either all or a significant portion of your initial investment.

Demand for these fixed-income investments is steadily increasing, often because of their various benefits. Some of the benefits of a high yield bond include.

-        Higher interest rates - Since high yield bonds are accompanied by a higher level of risk, they pay higher interest rates than investment-grade bonds in order to compensate.

-        Win-win scenario - When the company that you invested in makes gains, bond prices increase, thereby increasingly the value of your investment.

-         Measure of stability - The income component of the return of a high yield bond is larger, meaning that your risk is lessened.

Still, the risk is there, and if you are still a bit hesitant a high yield bond segregated fund might be something to consider. A high yield bond segregated fund, which holds bonds issued by several companies, allows you to invest without putting all of your eggs into one basket. At the same time the benefits remain, as does the return.

What if you want to invest but are unsure as to how to go about doing it? High yield bonds can be tough for the average investor to navigate, especially if you have no previous experience. That is why it helps to have someone in your corner that can both talk you through your investment options as well as manage them. An experienced insurance advisor can offer you the advice you need and assistance you want to get your portfolio started.

For more information about investing in high yield bonds, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

 

Staying Competitive: The Importance of Processing Insurance Applications Quickly

The old adage time is money is nowhere more truly accurate than in the insurance industry. Taking your time and dragging your feet won’t put money in your pocket. If you are a serious insurance advisor you know how important it is to get your applications processed quickly. Competition in the insurance industry is as fierce as ever, and one of the only ways to stay competitive is to get things done quickly. 

When a client calls you to set up insurance, they are likely thinking that the process will be a quick one – especially with the online insurance options, online quoting and the ability to arrange insurance online all available at the click of a mouse. Once the client has selected an insurance plan and the paperwork is filled out, the rest is in your hands. How you handle your client from here on out is crucial.

But what if it really isn’t in your hands, and instead is in the hands of your insurance company and they are the ones that decide to take their time. What if they drag their feet when processing your applications? This is something that you may have very little control over – but that doesn’t mean that the impacts are not very real.

In this competitive environment, while some loyal clients may wait on you, other less patient clients simply won’t and why should they? After all, there are countless other companies out there that can easily offer the same or similar products without the wait. There really is nothing stopping a client from turning to the competition if you take too long processing their application. Taking too long will mean lost business and a decrease in customer retention.

The internet and the sheer abundance of online insurance companies offering quotes make this competition even stiffer. It is a very simple thing for a client to jump on the internet and find a quote that they feel meets their needs and offers the same benefits as the plan they originally chose from you.

The impacts of processing times are not just short term. Processing applications quickly can also mean a big payout in the end in the form of future business. Even if you manage to land your client even after providing a slow turn around, if a client feels unsatisfied with their initial dealings, when the time comes to purchase additional insurance products they may look elsewhere. However, if they feel as though their needs were met efficiently and effectively, and all in a timely manner, they will not hesitate to turn to you with their business in the future.

If you work for an insurance company that takes forever processing insurance applications, or if you work with a managing general agency that does not recognize the importance of expedience, maybe it is time to consider switching.

At IFCG we appreciate the importance of time, and if you want to learn more about our process and its many benefits, please contact us by calling 416-849-1653 or visit www.joinifcg.com.

Is an Online Life Insurance Quote the Best Way to Go?

In today’s digital age, the conveniences of the internet are well known. Online shopping, online movies, e-books, etc. all make getting what you want that much easier. These days, so many people turn to the internet to compare prices and try and find the best deal. Life insurance tends to be a favourite here – but is an online life insurance quote really going to get you the protection that you want? 

Surfing the web for an online life insurance quote may seem like a smart idea, but is it really the best way to go? 

Getting an online life insurance quote may not give you the same level of personal service and guidance that you would get by speaking with an advisor. Pre-made forms that only ask certain questions without probing you to consider what other products and coverage may be relevant to your future goals. For example, how do you tell an online life insurance form what your financial plans are? You can’t. Can you discuss your future goals when getting an online life insurance quote? No. Can an online insurance quote provide you with the answers to your questions or offer advice? Not likely in any great depth. Life insurance is an important investment, and so making sure that you get what you want and need should mean talking with an insurance advisor that can cater your insurance specifically.

Another problem with an online insurance quote is the fact that you can’t really be sure that those quotes being offered are actually for the exact same product. With insurance, so many factors contribute to the building of an insurance policy that it is very difficult to compare apples to apples on an online stage.

Commission rates vary company to company, and so getting an online life insurance quote does not necessarily mean that you are getting the lowest price. That being said, price should not be the only determining factor in your decision to buy – there are many things that need to be considered, and so talking with an insurance advisor will help you determine what those are.

Instead of leaving your life insurance in the hands of a machine, think about why you are getting that online life insurance quote to begin with. If you are looking to purchase life insurance, chances are you are looking for financial protection for yourself or your loved ones for the future.

Looking for online life insurance quotes is not the same as looking for an online car insurance quote – there are many more things to be considered. The best way to ensure that that protection is as it should be is to seek out and speak to an insurance advisor. They will be able to work with you to find the best product to meet your individual expectations and the price for the insurance will be the same. 

For more information about life insurance and why an online life insurance quote isn’t always the smartest option, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

The Top 5 Pain Points That Insurance Advisors Face with Their Managing General Agents

It is no secret that getting up every day and going to work, for some people, can feel like a chore, no matter what your job is. This is especially common if you find yourself dealing with a company that often does not take your best interests into consideration or makes it difficult to do your job to the best of your ability.  

If you are an insurance advisor working with a managing general agency, you need to be able to count on the support of your managing general agent. But what if their support is lacking? In the incredibly fierce insurance industry, if you are not receiving the encouragement and assistance that you need, you can quickly fall behind.

Here are the top 5 pain points that insurance advisors face with their managing general agents.   

1.       It takes a long time for applications to get processed: If your managing general agency does not have a policy in place to ensure that everything is done to get applications processed in a reasonable amount of time, this can cause major problems as far as finalizing deals and keeping your clients happy. 

2.       Calls get returned far slower than you’d like – and need: If it takes your managing general agent a long time to get back to you when you have questions, or if they cannot provide you with the answers that you need, this can equal huge frustrations for you, or even worse, the loss of a client’s business. 

3.       Equal (or more) work doesn’t mean equal pay: If you find yourself being paid less than others who are not performing at the same level as you, this can be a huge source of demotivation.  You work hard to garner those clients, and you should be paid appropriately. Bonuses should reflect the level of work you put in, and should be transferrable for things like the use of various office spaces. Also, a good managing general agency should pay for production. If you produce more, you should get paid more – that is just common sense.

4.       Switching MGAs seems more hassle than it is worth: If you have tried to switch MGAs but find your managing general agent gets their back up right away, chances are you think of switching as a nightmare too. It shouldn’t be that way. Since your career is what is ultimately the most important, you should be working with a managing general agency that respects that independence. Instead of entering into a relationship with a managing general agent fearing what may come if you decide to switch, go with one that offers you a release letter at the very beginning so that you know that they can appreciate your decisions right from the start.

5.       Getting in touch with underwriters is next to impossible: When you want to close a case but your managing general agent refuses to let you speak to the underwriters or even contact them on your behalf, you are often left with no choice but to wait. Some managing general agents worry about damaging a relationship with underwriters by ‘bothering’ them, but in the end this is not the most important relationship – your relationship with the client is. So make sure that your MGA assures quick and easy access to underwriters.

If you find yourself dealing with one or more of these issues, and know that it is time for a change, please contact Gary Mandel at Independent Financial Concepts Group today by calling 416-849-1653 or visit www.joinifcg.com.