Client Roundtables with RBC Insurance

RBC Insurance will hold two client roundtables by their Life & Health Claims Department on September 24th and October 8th, 2008.

These events will involve small groups of clients who have had a recent claim with RBC Insurance. In a recent press release, RBC Insurance said that the information they receive directly from these clients will allow them "to better understand their perceptions, specifically with regards to their claims experience, provide us with valuable opportunities to improve on the many things that we are doing well and find ways to make our client experience even better than it already is."

Lorne's Comments:

It's great to see an insurance company investing in the improvement of the claim paying process. This is the backbone of what we do.

Empire Decreases Optimax Rates

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Transmerica’s Critical Advantage plan – unique but limited

Stopping Motion by Okko Pykko

Transamerica Critical Advantage is a global medical care insurance providing immediate access to advice and the best care through Best Doctors.

If diagnosed with a covered medical condition, the client and their doctors or specialists have immediate access to Best Doctors, the world’s leading medical information resource. Best Doctors can provide clinical guidance and access to a second opinion to help arrive at the right treatment plan. This system draws on a global database of 50,000 peer-ranked doctors to arrange care with the world’s top experts and facilities for your client’s specific medical condition. $1 million in affordable global medical care $1,000,000 CDN in global medical expense coverage, in addition to a $10,000 CDN travel and accommodation allowance. This unprecedented coverage empowers clients to follow their desired path to healthcare, wherever it may take them on the globe.

Clients who choose treatment in Canada receive a single payment of $25,000 CDN and ongoing access to the advice and guidance of Best Doctors. A simple product that’s easy to apply for Fast and simple application form and no medical or paramedical examinations required, so policies can be issued on a same-day basis.

Critical Advantage covers the first occurrence of any one of the following 10 serious illnesses:

1. Cancer (life threatening)

2. Coronary artery by-pass surgery

3. Kidney failure

4. Major organ transplant – on waiting list

5. Aortic surgery

6. Heart valve replacement

7. Benign brain tumour

8. Multiple sclerosis

9. Motor neuron disease (ALS/Lou Gehrig’s)

10. Parkinson’s disease

Lorne’s Comments

This plan is unique to the industry in Canada. However, it should not be confused with traditional critical illness insurance. The $1,000,000 payout is limited to global medical treatment. Insureds who choose treatment in Canada will have the payout limited to $25,000 CDN. The plan is available without a medical but the premiums increase every five years and are not guaranteed.

Critical Sales Down in 2007

According to the latest report by LIMRA International, Critical Illness insurance policy sales decreased by 3% between 2006 and 2007 from $84,983 to 82,397. For the industry premiums dropped from 78 million in 2006 to $77.2 million in 2007. These data were published in the August 2008 Insurance Journal.

Lorne's Comments:
The drop in sales can be largely attributed to many captive agents and brokers not properly understanding the product. Critical illness is a much more complicated form of insurance than life insurance. The underwriting is also much more stringent.

AXA’s new line of accumulife option funds brings numerous advantages

The AXA Group has introduced a new line of accumulife option funds that brings together investment managers with 12 investment options, offering funds that range from fixed income to maximum growth portfolios.

 
In a recent press release, AXA listed several advantages of these accumulife option Guaranteed Investment Funds. They include:

• A wide range of possibilities offered through the funds and their diversification;

• Very competitive management fees;

• Guarantees and forms of protection not offered by mutual funds;

• The international reputation and experience of fund managers: AllianceBernstein, AXA Rosenberg, Franklin Templeton and TD Asset Management.

Lorne’s Comments:

AXA’s Accumulife funds have competitive MERs when compared with other segregated funds on the market. Their fund line offers 12 funds in total; until now two of these were limited to institutional investors Global Equity and Canadian Equity, both offered by AXA Rosenberg.

Unity Life’s Plus Term: a Hidden Gem

Unity Life of Canada joined the Foresters family in April 2008 and as of Jan 23 2012 changed their name to Foresters Life Insurance Company.

Unity Life’s Plus Term is a non participating whole life policy available in Canada to applicants aged 18 to 45. The plan provides lifetime protection and is guaranteed paid up at age 65.

The policy has a guaranteed cash value available at age 65 and the cash value accumulates each year thereafter.

Below is an example of $250,000 coverage for a 41 year-old Female Non Smoker. Unity Life stacks up well against its Whole Life Paid Up at 65 competitors, especially in the cash value department.

• All three policies have a paid up death benefit at age 65.

The Manulife applicant saves about $4,900 over the 24 years but her cash value would be over $65,000 less at age 65. The Industrial Alliance plan has a higher premium and $62,650 less cash value at 65.

Unity Life’s Plus Term plan also has a unique Extended Insurance feature. In the event the policy owner is unable to pay premiums and the policy has been in force for 2 years, the insurance amount, less the outstanding loan and any interest due, will remain in force for one year from the date premiums was due. During this period the policy can be put back in force by paying the premium plus any interest. Policyholders can use this feature up to 3 times.

Additionally now that Unity Life has joined forces with The Foresters all policyholders are now Forester members and may be eligible for valuable complimentary member benefits such as postsecondary scholarships or a grant for a covered illness. These benefits may provide extra protection to help ensure new applicants and their families get the support they need through key life events.

AXA’s new underwriting system: faster for clients, easier for brokers

In a recent press release, AXA Insurance announced that they were implementing a new teleunderwriting service for obtaining medical questionnaires:

Through BW Underwriting Services Inc., a teleunderwriter will be contacting your clients directly as needed to complete certain medical questionnaires. This third party will free you from repeated visits and from being accountable for information accuracy, and will improve the processing time overall, thus saving you precious time.

This new service is being launched gradually and will initially include the most common questionnaires requested, such as Arthritis, Diabetes, Epilepsy, Backache and Musculoskeletal Problems, Digestive System Disease, Nervous System and Respiratory Problems. Axa will eventually roll out all medical questionnaires that Underwriting needs to assess the risk.

Lorne's Comments:

AXA is on the cutting edge when it comes to underwriting. By gathering more accurate and detailed information, AXA will be able to limit the number of Attending Physician Statements (APS) they request. The APS is the primary delay in getting a life insurance application approved.

Another added benefit is this reduces the work load on the broker – as he/she is not responsible for gathering this information and because the calls are recorded AXA does not require a signature from the client.

Life insurance as a means of maximizing wealth

Illustration by Julie Smith David

We often hear that the a primary purpose of a life insurance policy is to replace the income of a family breadwinner in the event of his or her untimely demise. But what about families with minimal debt and full grown children? Why would they need or want life insurance? In our latest article we take a look at some benefits life insurance has for maximizing wealth.

RBC Insurance increases limits on its future income option

RBC Insurance raised the limits on its future income option, effective July 30, 2008. The future income option allows disability insurance policyholders to increase their disability insurance monthly benefit without providing evidence of insurability. The increase applies to all occupation classes. New applicants qualifying for a 4A classification can now add a future income option of $25,000 per month, a significant increase from the previous ceiling of $15,000 per month.

Lorne’s comments: RBC Insurance’s future income option is a great way for professionals and those in other occupation categories to enhance their coverage without providing evidence of insurability.

To exercise this option, the applicant must still provide proof of income. This option would be a good fit, for example, for young interns in good health but making limited income. They can easily protect their current income while adding the future income option to protect their future earnings.

LSM Insurance a role model for proposed 4 day work week in Nova Scotia says CBC

CBC News has again featured our four day work week initiative as a good example of how to combat high fuel costs. Now, Nova Scotia is looking at a four-day work week for government employees as a way to save energy, the online news service says.

Energy Minister Richard Hurlburt is reported to have said that his department is preparing a report on how how much the province would save in energy costs.

The article, among others, reads:

In Canada, some companies, such as LSM Insurance in Markham, Ont., have decided to offer employees a condensed work week to reduce commuting costs as gas prices soar.

Click here to read the full CBC report on our four day work week.

Children’s term rider from Manulife

Illustration by Fionn Kidney

Manulife’s children’s term rider, unique in the Canadian marketplace, just got even better. The rider allows a child to be covered for $10,000 at a cost of $2.50 a month. But even more important is the plan’s built-in conversion option.

On the policy anniversary nearest the insured’s 25th birthday (or earlier, at specified option dates), the insured child has the option to purchase $250,000 of new life insurance coverage without new medical evidence. That on its own is unique in the industry. Manulife goes even further, allowing $100,000 of that coverage to be critical illness insurance.

There are two caveats: 1) the total life and critical illness coverage is still limited to $250,000 and 2) to exercise the critical conversion option, Manulife must confirm that the insured does not immediately qualify for a claim. The insured can also not have more than $1.9 million of critical illness coverage in force. Manulife’s maximum retention limit is $2 million.