September 18, 2018 07:00
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The 8% increase in sales of critical illness insurance is explained by the fact that Canadians understand the product better, especially the younger crowd, say specialists in this market.
The sales figures compiled by the research firm LIMRA show that sales of critical illness insurance are rising steadily since 2015. Products with permanent the odds.
Justine Zavitz, advisor at Zavitz Insurance, said to have more customers aged 30 to 45 years old who buy the product. Having completed their studies, see relatives and friends fighting the disease, and find yourself short of money, makes you think, ” she said. They buy the product even if it is more expensive than before, the adoption of the Law on non-discrimination genetic boosted its price.
Ms. Zavitz recommends that you buy the product before the age of 30 years. She insists that she must often make the feet and hands with the insurers for them to accept a contract without change for a customer aged 35 years old and is in good health.
Senior advisor heritage and director of the Toronto branch ofAssante Capital Management, Tina Tehranchian integrates critical illness insurance in its approach to financial planning. “This is an integral part of any financial plan. If there is any insufficiency, we see how critical illness insurance can help fund the all. “
Ms. Tehranchian also points out that critical illness insurance can cover a wide range of income levels. For the people of the middle class, she uses it to protect their mortgage, but also to create an emergency fund in case of illness. The all prevents them to tap into their RRSP or their other assets if the illness prevents them from working.
She added that critical illness insurance can also protect people at high-net-worth in the face of a potential loss of income to which they could not cope without this product. “These people have significant assets. It is often placed in real estate, hedge funds, and vehicles other than cash. Where appropriate, we discuss the coverage afforded by the insurance of serious diseases. It provides liquidity. They will, therefore, not to dispose of their illiquid assets or to sell them at a discount, ” she said.
A gift for parents and grandparents
Dean Chambers, vice-president, individual insurance, Financial , Sun Life, note that more and more parents and grandparents take out a critical illness insurance on behalf of their children. “If a child is sick, at least one parent must take leave to look after; this is where the critical illness insurance benefit is useful. The parents can take care of the child without worrying about the fact that the revenue no longer fit. “
All in all, the product has experienced a moderate growth, ” he said. “It has not been the subject of enough innovation so that it causes a significant growth. It also becomes a little more price sensitive. “
At BMO Insurance, the sales growth amounted to 4 %, says Steven Cooney, senior vice-president and head of the division life insurance and individual annuities. He attributes to the services that BMO has attached to his product and who can provide access to support services, including find a doctor or during a bereavement. He adds that advisors are more familiar with the product and presents it more systematically during the preparation of a comprehensive financial plan.
The efforts are
Sun Life reported a rise in sales in its network of career, but LIMRA notes that it is strongest in the independent system. Phil Marsillo, president of the insurance Network IDC Worldsource, points out that the agents-general have made efforts in recent years to the advisors in order to spur the product to their customers.
IDC encourages and its advisors do not aim necessarily to sell the cover that covers the entire mortgage, but rather the one that ensures that the mortgage payments are covered during the treatment of the disease. “It will be a little more affordable, in addition to better meet the needs of the client. “
Joseph Trozzo said that most of the advisers to sell critical illness insurance to customers who already have other insurance, including disability insurance and life insurance. Disability insurance provides the client with the necessary funds to cover his monthly expenses, whereas the lump sum from the critical illness insurance allowed him to have the treatments of their choice, or it can extend somewhat the sick leave. (Editor’s NOTE : during the interview with the Journal of insurance, Mr. Trozzo was working for the agent-general QFS Canada. He has since changed jobs.)
Tina Tehranchian, Assante, mentions that it sells rarely a critical illness insurance policy 10 year term, unless the customer did not have the means to pay the premiums of another product. According to his experience, the temporary insurance 75 years of age is suitable for most clients. She usually added a rider return of premium death benefit and, if the client can afford it, an endorsement of the refund of premiums in the event of redemption.