Ernst and Young: Internet Transformative Influence on Insurance Industry. How Your Managing General Agent Can Combat This

The “2012 Global Insurance Outlook” report released recently from Ernst and Young revealed that the Canadian insurance industry is getting increasingly competitive. If you are an insurance advisor this probably does not come as a surprise. This competition stems from various different factors, one of the most important being the internet. With the growth of the web over the last decade, many different insurance companies have taken advantage of the opportunities that exist as far as selling insurance online. Ernst and Young predict that this will become even more common place as those companies still holding on to traditional means of selling adopt the strategies that allow them to sell online.  

But what does this mean for you? If you are an insurance agent that works with a managing general agent, you know that time is money, and so any time lost because of slow turnaround times can be a big deal, especially in the face of this competition coupled with the growing strength of e-commerce insurance.

You work with a managing general agent for a reason – for independence and to have the ability to offer a wide range of products. It can be extremely frustrating when your managing general agent is slow getting back to you or don’t seem to have the answers you need at all. You should expect your managing general agent to be able to provide you with the information that you need to respond to your clients quickly to provide the fastest most efficient service possible.

Rather than dealing with the hassle that can be a consequence of clients having to wait too long for the information that want or need, your managing general agency should be able to guarantee that they will help you find out exactly what you need to know, and within a reasonable amount of time. Instead of expecting a client to have to wait days for an answer, you should be able to rely on your managing general agent to get back to you within a few hours.

What if your managing general agent takes their time getting your applications processed? The longer those applications sit on your desk, the likelier clients are to search for insurance elsewhere.  Your managing general agency should also have a policy in place that makes it easy for you to provide a response to your clients within a reasonable amount of time.

As Ernst and Young points out, individuals’ preferences for buying insurance are changing, which, the report states, is “a profound transformation driven in large part by the internet.”  If you work with a managing general agent who takes too long to respond to your inquiries or process your applications, your customers are likely not going to wait. It only takes a few minutes to go online and get a quote for insurance. Your edge is knowledge and service so it is important to work with a managing general agent who appreciates the importance of time.

For more information about joining a managing general agency that recognizes that time is money, please contact Gary Mandel at Independent Financial Concepts Group today by calling 416-849-1653 or visit www.joinifcg.com.

The Importance of Critical Illness Insurance Increases as Survival Rates Continue to Go Up – Are You Protected?

In the past few decades the survival rates of critical illnesses have substantially increased, meaning that more and more people who suffer from a critical illness will eventually recover. However, this also means that a substantial portion of those survivors are left dealing with recovery. Because of this recovery, many survivors feel a significant amount of financial strain, often as a result of extended periods off work or even the inability to earn an income. 

Let’s take heart attack as an example. There are over 16,000 deaths each year in Canada from heart attacks. However, there are an estimated 70,000 heart attacks in the same time period. That means that a major number of those heart attack victims survive and recover. But how does that heart attack impact the victim?  Most require a hospital stay, often a substantial period, and more require a lengthy period of time off work. Many need weekly medical assistance in home. These costs all add up even in Canada when you would think that all health care expenses would be covered by the government.

This is where critical illness insurance comes into play. If you have critical illness insurance, you are financially covered. If you suffer a critical illness and you have critical illness insurance (and upon satisfying the terms of your policy) you will be entitled to receive a lump-sum payment. The lump-sum payment is yours to spend however you need it, without having to submit receipts or seek approval. This financial coverage can be used for any number of things, including mortgage payments or medical treatment not covered by governmental health care.

What if your illness or injury leaves you physically disabled? Since the loss of a limb is covered by critical illness insurance, some of the anxiety that accompanies such an injury is lifted. This coverage can be used to cover the costs of having someone in on a regular basis to manage household tasks such as cooking or cleaning. It can also be used to make adjustments to your home or personal vehicle to make them wheelchair accessible.

What kinds of illnesses does critical illness insurance cover? Things like heart attack, stroke or cancer are the leading illnesses covered by critical illness insurance each year, but there are several others that this protection encompasses as well. Things like cancer, multiple sclerosis, Parkinson's disease, and Alzheimer's disease are all covered. Kidney failure, heart bypass surgery, blindness, deafness, severe burns or stoke are also covered. Many of these illnesses can have long-term impacts that affect your financial future, so protecting yourself in case they occur is essential.

Just because you have life insurance, doesn’t mean that you are fully covered. If you suffer from a critical illness such as those listed above, your chances of survival are high but your life insurance is not going to cover those expenses that come with it. Critical illness insurance ensures that you are protected when you are still living.

For more information about critical illness insurance and how it can protect you and your loved ones, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

Keeping it Confidential: Your Managing General Agent and Confidentiality

If you are an insurance advisor you know just how crucial it is to keep client information confidential. Whether you work for an insurance company or with a managing general agency, you are no doubt aware of the hazards that exist should your client information make its way into the wrong hands – or any hands other than yours for that matter! Client confidentiality should be one of your top priorities, so when you are thinking about switching to a managing general agency it is important to know where they stand and what they do to help you keep your clients’ information confidential.  

Let’s look at an example of how client confidentiality can be breached. You’ve been working hard with a new client, working with your managing general agent and finding the client the best deal. They have purchased a product, given you all of their information (which of course includes all of their medical and financial data). You keep it all on your personal laptop, and back it up regularly. Unfortunately (and it is common knowledge that laptop theft is a real issue) that laptop gets stolen. Although you still have all of that information on that back-up zip drive – now the thief has it too!

In this case, an experienced computer hacker will have no problem getting through your password protection and getting access to all of those credit card numbers, bank account numbers, social insurance numbers, etc. that your client provided to you in confidence. Clearly that phone call is going to be an awkward one…

So how will working with a managing general agent help protect you from this threat? By providing the most up-to-date software and training, your managing general agent will be able to provide you with the tools you need to keep this from happening. ­­­­­­­­­­­­­­­­­­­­­­­­For example, does your managing general agency enable you to host your data on a secure network? This is a huge asset to an independent insurance agent who may not have their own resources to set up a secured network for this purchase.

Not only should your managing general agency be able to provide you with the tools you need to keep client information where it belongs, by offering seminars and coaching sessions, your managing general agent can teach you the methods that their years of experience have garnered.

Working with a managing general agency often offers you far more freedom and independence than working for an insurance company. Great benefits, clients vested to you immediately, and the ability to offer top-notch service are just some of the things that come with working with the right managing general agency. Confidentiality is another important benefit. Taking advantage of the expertise and technology offered by the right managing general agency will allow you to take advantage of their experience and help keep you out of court and your reputation intact.

For more information about how to tackle confidentiality while working with a managing general agency please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.joinifcg.com.

Income for Retirement: Keeping the Dreams Within Reach

No matter what stage of your life you are at, whether it be just starting out, settling into your dream career, or on the verge of retirement, you need to make sure that your financial planning ensures your income for retirement. Not only should you be asking “how much money do I need to retire,” but also, “how can I save that money?” It is always smart to be ready for anything. 

With proper retirement planning, you can be sure that your income for retirement will allow you to relax and enjoy your time off. Whether you are planning to take that relaxing cruise down the Mediterranean every February, stopping off in Monte Carlo for a few nights, or just want to be sure that you can provide for your family while still keeping up your regular social life around town, you have to make sure that the funds necessary to maintain these lifestyles are available.

In order to answer the question how much money do I need to retire, there are many things to consider when you start planning your income for retirement. Your age, any dependents, and what kind of lifestyle you want to have are all factors that will influence the amount of money you put away each month or the types of strategies you adopt in order to secure income for retirement.

One of the smartest ways to ensure your income for retirement is through an annuity. By purchasing an annuity, you are basically securing guaranteed income on retirement. How? By making set monthly payments, you are guaranteed a lump sum payout when you retire. This means that you are continually putting away extra money each month, and once you can finally give up that day job you have access to those funds to use whichever way you want – whether it be the Italian Coast or your own backyard.

In answer to how much money do I need to retire, let us say this: everyone is different, but the choices that you make during your retirement planning will greatly impact your ability to relax during retirement and ensure that you have access to the funds that will allow you to keep doing what you enjoy. 

Are you asking yourself how much money do I need to retire? Solve the riddle that so many struggle with the easy way – speak to your insurance broker about guaranteed income on retirement annuities.

Take a look outside. Chances are this is not the type of weather that you will always want to enjoy over the long Canadian winter months. Keep those dreams of yearly snowbird trips alive by planning smart for your income for retirement.

For more information on how to answer the question “how much money do I need to retire,” or to start planning your income for retirement, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Why Your MGA Insurance Brokerage will determine the “Size” and “Type” of Clients You Will Be Able to Land and Service!

Different insurance advisors have different career aspirations in terms of the types of insurance products they want to offer and the types of clients that they want to have. 

Business owners and affluent clientele offer an incredible opportunity to insurance advisors. These clients are educated about insurance, more apt to expand their portfolios or purchase bigger ticket policies, and more likely to be interested in a diverse range of products. Most also see insurance as more than something that helps us when we die, instead looking at it as something that is a great financial tool while we are alive. 

While many life insurance advisors want to break into this market, it can be intimidating and hard to know where to start. Yes, those insurance advisors who have this clientele in their existing network have an advantage, but that’s not to say that you can’t crack this nut with the right resources.

Working with an MGA insurance brokerage that caters to this clientele will make a huge difference when it comes to breaking into this market. Here are some of the things that clients in this market will be looking for in you:

Does the MGA insurance brokerage that you work for offer a wide range of products that can be leveraged as investment vehicles? This will be important because those who have high incomes and assets will want to explore products that offer tax incentives.

Is the MGA insurance brokerage that you work for known for working with high income clientele? The brand recognition of your MGA insurance brokerage is hugely important for those advisors who want to service a higher income clientele, especially if they don’t have their own existing networks. A good example would be the difference between working for Sotheby’s or Re-Max if you were a realtor. People instantly know that Sotheby’s works with high end home owners.

Does the MGA insurance brokerage that you work with provide office and meeting space in locations where higher income clientele live/work, and is the “in-office” décor and experience consistent with one that a higher income client would expect? This is also important because while it would be great if appearances didn’t matter, they do matter!

When you find an MGA insurance broker that caters to the market that you want to work with, the vetting process is not over. It is important to question what other resources that they will make available to you. Will they mentor you? What are their turn around times on both phone calls and applications? Do they offer you the capability to have your own website with their branding? These questions and others are very important.

People identify with themselves and what they know. When an individual looks for an insurance broker, when they arrive on your website or at your office, they will want to feel like they belong. You don’t necessarily have to have contacts in a higher end market to penetrate it. Aligning yourself with a MGA insurance brokerage that is already there will greatly improve your chances of success.

If you are interested in working with one of Ontario’s top MGA insurance brokerages please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.joinifcg.com.

Life Insurance in Ontario – A New Year’s Resolution That Will Actually Stick!

With the holidays behind us, many of us want to start off the New Year with a fresh start. Your New Year's resolution may include planning to be healthier, perhaps by changing your diet or getting in shape. Or maybe your New Year’s resolution will include a plan to be more fiscally efficient by implementing a new budget and plan to save. Your New Year’s resolution could include making plans for your family’s future. 

One great way for Ontarians to plan for the future is by reviewing your current insurance coverage, including your life insurance – both to ensure that you have sufficient coverage and to even look for areas where you can save. As we navigate through life our insurance needs change. The type of life insurance that a young family needs is different than the type of life insurance a more mature family needs. In addition, life insurance in Ontario can vary greatly from company to company in both the cost of premiums and the coverage available to you.

Where life insurance in Ontario is concerned, time is not on your side. The older you get the more expensive life insurance premiums become, so it pays to make your life insurance a part of this year’s New Year’s resolution. Fortunately for you, life insurance in Ontario offers you a wide range of choices and benefits. It doesn’t matter how young or old you are - there are different policies available for people of all ages and walks of life.

Of course, life insurance comes in very handy in the event of an untimely death, but there are many other reasons why Ontario families make life insurance a part of their overall financial planning.

Life insurance in Ontario is a smart investment to make to protect your family and can be a great way to plan for retirement (guaranteed retirement income) or as a smart saving tool. So many New Year’s resolutions revolve around our personal finances, so why not get a jump on this year’s savings by using life insurance in Ontario as the perfect saving vehicle. For example, a whole life insurance policy can help give you the tools to invest effortlessly – making saving simple and easy!

What about your child’s education? Knowing the costs associated with a post-secondary education, many New Year’s resolutions include planning for that. Setting up life insurance in Ontario for your child can be a great way to get this started now – instead of scrambling after high school graduation.

You simply can’t afford to make life insurance planning a part of next year’s resolution. With December and all of its mayhem out of the way, make life even less stressful by insuring that you have created a secure blueprint for whatever may happen in the years ahead. There are many different life insurance products out there, so speaking with your Ontario insurance broker and discussing all of the options that will meet your needs is a great way to get that New Year’s resolution set in stone!

For more information about life insurance in Ontario and to tackle that New Year’s resolution, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Link Between High Stress Jobs and Critical Illness – Why Critical Illness Protection is Vital!

For most of us, getting up and going to work every day is necessary. No matter what job you do, whether it is an interim stepping stone or your dream career, there is always the chance that stress will lead to a critical illness. Whether you work as a lawyer, dealing everyday with fast paced cases, a police officer or firefighter dealing with life or death situations, or a nurse working shift work, the chances of dealing with stress, and a subsequent critical illness, are quite high, especially as we get older. 

There are several different workplace conditions that have been identified as leading to job stress, including the design of tasks, management style, work roles, career concerns, or environmental conditions. High stress jobs don’t necessarily mean high powered jobs – anyone can suffer from the effects of high stress – which all too often lead to critical illnesses, such as heart attack, stroke, or even cancer.

Since most of us can’t just quit our jobs and find something that requires very little interaction with those factors that can lead to stress, critical illness protection is vital. So, what is critical illness protection (or critical illness insurance)? Critical illness protection is a form of insurance that protects you in case you end up suffering from a critical illness. Rather than life insurance that protects you after you pass away, critical illness protection is there to assist you when you are still alive.

Critical illness protection can provide you with a cash benefit to be used to rebuild your life after suffering the illness or injury that takes you away from work.

Since survival rates for those illnesses covered by critical illness protection are quite high, it is essential to make sure that you are covered by a policy in case you suffer from one. For example, various forms of heart disease will affect 1 in 3 women and 1 in 2 men during their lifetime, but the survival rate for a heart attack is over 80% in Canada.  Similarly, 1 in every 20 will suffer a stroke, but the survival rate for strokes is 85%. These stats prove just how important it is to safeguard yourself with critical illness protection, especially if you work in a high stress job.

Here are some other stats that may help convince you of how important critical illness protection is:    

-          48% of house foreclosures are a result of a serious illness.

-          In 2000, over $800 million of individual retirement savings were used to pay for critical illness care.

-          72% of Canadians have noted that governmental aid will not cover all medical costs related to a critical illness.

Whether you are in what may be considered a high stress job or not, a critical illness is always a factor, and so taking advantage of the benefits of a critical illness insurance policy needs to be just as important. If you suffer from a critical illness and are unable to work, or need to take a significant period of time off work, critical illness protection can help you keep up your current lifestyle.

For more information about critical illness protection, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.