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.