The Challenge to be BOLD

  

by Jonathan Mullett BA, Performins Canada Inc.


I understand this is a busy time of year with many things pulling for your attention and so I am grateful for the 5 minutes that you give to read this email and watch the video.  I trust that you will find it of value.  As always your feedback is most welcome.

Recently we produced a video, a 30 second commercial telling the story in a rather provocative manner, of the need for insurance, the need to “be prepared and plan ahead.”  The truth is that nobody knows how long we have to live and definitely nobody likes to think or talk about it…but this doesn’t change the reality that we all need to plan for it, because life can really change “in an instant”.  I encourage you to click the link at the bottom of this article to watch the video, and please feel free to share it.

I might be preaching to the choir a bit…but here it goes anyways…

As an insurance advisor you sit with your clients, listening carefully to their concerns and meeting their families and loved ones.  You help implement a policy(s) that you hope they will never need prematurely, but you work to ensure that the coverage is just right.  The real value of the work that you do is brought to the forefront when a claim occurs.  Then the people that you took the time to call…several times, book a meeting with, complete an application with, fight with underwriters for, and eventually deliver a policy to, NEED you and are leaning on the work that you’ve done.  It’s a time of mixed feelings from an advisor’s perspective; we can be deeply saddened that a client has passed away (gotten ill, become disabled), but we also can be affirmed and get a renewed sense of passion for our work because our clients and the people that count on them, had the coverage that YOU put into place.

Sometimes we can get caught up in the “industry stuff”; rate changes, product changes, underwriting issues, comp changes, and the list goes on… and those things are all important, but as you continue to build your businesses and meet with clients, I want to challenge you to be BOLD with your recommendations.  Keep in mind that perhaps someday you might be delivering a claim, and the proper recommendations now will mean confidence later…and more importantly, well cared for clients.  I know that you know this already and I could stand to learn a great deal from you, so please take this as encouragement for a job well done J.

Please watch the video and feel free to share with friends, colleagues, and clients.  I know that it may not necessarily be your “style”, but we hope you enjoy it anyways.

Click HERE to watch the video.

Jonathan Mullett is Inside Sales Coordinator at Performins Canada Inc.  For questions, comments and feedback, email: jmullett@performins.com.

Canadian Life Insurance

Lifetime Level Cost Insurance

by Andrew Murray, Performins Canada 

The current low interest rate environment has been a blessing and a curse to consumers

1. Borrowing costs are reduced

2. GIC rates are reduced

The current interest rates environment has affected life insurance products and costs

1. Initially, Canadian insurance companies had increased the costs for lifetime level cost insurance products (Term to 100) in an attempt to offset profitability exposure. These products were priced assuming insurers could match liabilities with investments (mostly bonds) that produced yields of 6-8%.

2. With the prospect of continuing low interest rates, some Canadian insurance companies have totally exited the level cost of insurance market. This type of product is unique; Canada is one of the last counties still offering these types of guarantees.

Opportunity?

In the short term, the answer is yes;

1. Most Canadian insurers continue to offer this product

2. Although costs have increased, and continue to increase, the current costs do not, yet, reflect current bond yield (costs are still priced at a discount)

What should I consider?

Many Canadians have purchased term insurance (term 10/20). Most term 10/20 policies allow the insured to convert, change a portion of the coverage from a Term10/20 to lifetime level cost insurance, without having to medically or financially qualify. With lifetime level cost insurance priced at a discount and the long term availability in question, now may be the time to convert. Consider converting a portion of you current term policy to lifetime level cost insurance for:

1.       last expenses

2.       Estate tax liabilities; RRSP’s, Cottage capital gains,

3.       Business succession planning

Andrew Murray is Business Development Director at Performins Canada Inc.

For questions, comments and feedback: email: a murray@performins.com.