For many people, purchasing life insurance can be a daunting process. The topic forces you think about your own mortality and it can be a complicated subject.
As a result, many Canadians find it difficult to make the necessary choices when buying life insurance.
It’s important for you to feel comfortable with the purchasing process, and gain as much knowledge as possible about what you’re buying. A life insurance advisor can help you with the decision making process by answering your questions and providing advice.
A great way to find the right information that you truly need to know about purchasing life insurance is by asking the right questions.
To help simplify your list of questions, let’s break it down into the ABC’s:
Let’s focus this blog on questions to ask advisors.
Don’t be embarrassed to ask the question and don’t simply assume that the advisor is licensed in your province.
You don’t necessarily need the alphabet soup after the advisor’s name but determining the areas of financial planning that you’d like advice for will help you narrow your search. Licensed Life Insurance advisors need to have completed the Life License Qualification Program (LLQP). Additionally, financial planners have designations and credentials that require extensive education in financial planning. As well, many advisors may also have their Certified Financial Planner (CFP) designation.
Life insurance advisors can either be:
a) an independent life insurance advisor or
b) a captive life insurance advisor
An independent life insurance advisor can be licensed to do business with a number of different insurance companies and are able to look at many product offerings from each company they represent. A captive life insurance advisor generally only offers life insurance solutions from a single company.
For peace of mind, most people want to know which company their application is submitted to. Organizations such as A.M. Best Co, provide ratings so that consumers can research the financial stability of the life insurance company. Ask your advisor if your policy is submitted to an established and reputable company.
*Mintel Life Insurance Study, September 2014
The application process requires you to complete a Life Insurance application either electronically or on paper. Your age and insurance coverage amount as well as other factors will determine whether or not you need to also complete a medical exam, provide fluid samples or simply complete a health questionnaire as part of the process. An advisor can help you go through the application process.
To help connect you with a life insurance advisor, click Find an Advisor.
Stay tuned for questions to ask about your: