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.