Increasing Your Prospect Pool with Social Networking

Business Graph by Balazs Gal

    I have become increasingly interested in how social networks can help you get your name in front of more people and build upon the concept of Passive Prospecting.

Facebook is the most popular but my preference is social networks, which are geared to the business side of things:

Linkedin  www.Linkedin.com

Twitter  www.Twitter.com

Gigpark  www.GigPark.com

Read the whole article Increasing Your Prospect Pool with Social Networking

A Closer Look: BMO Insurance’s Direct Term

In 2001, Bank of Montreal's Life Insurance division, BMO Life, began offering a unique twist on term life insurance through their BMO Direct Term product.

It's only available directly from a licensed agent via their call centre, but before you pick up the phone, let's take a closer look at what you're getting with BMO Direct Term:

Payouts range from $25,000 to $5 million spread out through $1,000 instalments and the premiums are guaranteed. As BMO is the only bank in Canada to offer AirMiles with their banking products, naturally their insurance products, including Direct Term, qualify for AirMiles as well.

Immediate coverage is offered at a face amount of up to $250,000, if you can answer no to certain health questions over the phone. Still, if you don't immediately qualify for coverage, BMO can offer you a $100,000 accidental death benefit.

Unfortunately, pricing is much higher than traditional individual term plans, especially if you're purchasing a policy with a shorter term.

40-year-old Male, Non Smoker, at a Preferred Rate of $500,000

Term 10: BMO $49.27 – RBC Insurance $26.01

Term 20: BMO $64.76 – Equitable Life $46.80

Term 30: BMO $85.30 – Unity Life $81.00

Since BMO's Direct Term Plan can only be purchased over the phone, you also miss out on the personal touch of a face-to-face meeting, like what you would get if you were represented by a broker. The representatives on the other end of the line are unable to advocate on your behalf and shop around for the best rate, the way a broker can.

While BMO's Direct Term Life insurance policy has some unique features, it can't offer customized advice and strategies the way a broker can.

You can get a free quote by visiting our Instant Quote Page or feel free to contact me directly at 1.866.899.4849

Non-Medical Life Insurance: Simplified Issue versus Guaranteed Issue

careful before you sign
photo by Christian Birmele

One of the small annoyances that come with buying a traditional life insurance policy is the required medical form you must fill out, especially since some people cannot qualify for those types of plans, but still want to ensure their family's financial future.

Well, don't worry because there are plans out there that require no medical exam called Simplified Issue Policies and Guaranteed Issue Policies, but there are a few subtle differences between these two distinct plans, which you should be aware of before you buy. 

(Non-Medical Life Insurance: Simplified Issue versus Guaranteed Issue continued...)

Canadian Tire Term Life Insurance: Not as Good as it May Sound on TV

When most people think of Canadian Tire, they’re thinking power tools and patio furniture, not life insurance.

Still, the home hardware company has offered a term life insurance plan, underwritten by Canada Life, since 2005. Two months ago, in March 2009, they tweaked the details of the plan and began rolling out a new marketing campaign, complete with TV commercials.

Not as Good as it May Sound on TV.
photo by Sergio

However, underneath the increased publicity, the plan isn’t all it’s cracked up to be, when compared with an individual term life policy.

But before we evaluate why an individual policy may be better for you, let’s take a closer look at the Canadian Tire Term Life Insurance Plan.

(Canadian Tire Term Life Insurance: Not as Good as it May Sound on TV continued...)

Empire Life’s Optimax III

Empire Life's Optimax III is product is capitalizing on Canadians renewed enthusiasm for simple guaranteed life insurance products. Whole Life sales as reported by Limra International were up by 13% in 2008.

Optimax is a traditional Whole Life plan available on a Single, Multi-Life or Joint Life basis. Face Amounts can be as low as $5,000 and the coverage is available to insured's age 0 to 85. The plan offers two premium choices:

• Optimax 100 - premiums payable to age 100.

• Optimax 20 Pay - Premiums payable for 20 years then fully paid up coverage for life.

The policy also has a full range of additional benefits:

• Disability Waiver

• Guaranteed Insurability

• Accidental Death and Dismemberment

• Children's Life and Critical Illness Rider

One quirk in the policy for children taking out a plan. At age 18 the insured has to submit a declaration stating they have not used tobacco or nicotine products (including marijuana) for the 12 proceeding months to get the plan reduced to a non smoker rate.

As with all Empire Life Term and Whole Life plans if another immediate family member has a policy there will a reduced administered fee of $30 a year.

Please feel free to visit our Whole Life Instant Quote Page or contact me directly at 1.866.899.4849 and we can design a plan for your particular situation.

Life Insurance Sales in Canada Climb 3%

 

by Phil Brown

Limra International recently reported that life insurance sales in Canada are on the rise reaching $1.1 billion in 2008. The following is a breakdown of the 2008 Limra numbers in terms of premium sales:

• Term 10 and Term 20 sales were up by 12%

• Whole Life sales increased by 13%.

• Universal Life sales decreased by 3%

• Term 100 sales were down by 21%

• Overall premium rose by 3%

The numbers reflect three key points:

1. Canadians value life insurance even in periods of economic uncertainty.

2. The vast majority of insurance companies in Canada remain financially stable.

3. Traditional guaranteed products are gaining in popularity. The Term 100 number is skewed given fewer carriers now offers this plan.

Life insurance offers an affordable way for individuals to achieve financial stability in the event of an unexpected tragedy. The current recession has left many Canadians with a smaller safety net. Life insurance creates liquidity and stability.

Life insurance has never been more affordable. You can get an instant quote in comfort of your own by visiting Free Quote or give us a call at 1.866.899.4849.

Unknown withdrawal from your bank account from BMO? Don’t panic

Don't panic, says life insurance broker Lorne S. Marr. "It's just part of the official transition from AIG Canada to Bank of Montreal."

AIG Canada policy holder Dawn Thompson is not happy - "Do you not think AIG could have had the courtesy to notify me? What if I want to speak to someone at BMO about my policy - there are no contacts, no information. Talk about being blindsided!"

Apparently BMO Life Insurance did send out notices but a lot of people didn't get them or read them.

"It happens all the time. People get so many documents with final legal print that they just don't read. Of course they should, but they don't."

LSM Insurance has put up an official contact page for their many AIG policy holders who have now moved to BMO Life Insurance. And they are answering questions from their clients directly as well. The page is a help not just to their own clients but to anyone holding an AIG Canada policy.

"Any former AIG life insurance policy holder can find all the information they need to contact BMO Life about their policy, even for claims," says Mr. Marr.

"It's a big transition, but with the Bank of Montreal, we feel our clients are in good hands."

For the moment telephones are ringing off the hooks at the BMO and at customers banks.

The difficult part is if someone doesn't want to be with the Bank of Montreal for either personal reasons or past experience with BMO. In that case, the individual has to consider moving to another life insurer. AIG Canada simply doesn't exist anymore.

But moving a life insurance policy has to be done very carefully according to Mr. Marr.

"If you don't take care when you move your life insurance policy you can face penalties, lose coverage and end up paying higher premiums. A good independent life insurance broker knows how to make sure that doesn't happen. But make sure you call us first before you cancel your old policy."

Sometimes there is a pot of gold at the end of the rainbow though, reassures Mr. Marr.

"Many times our clients end up with lower premiums and higher coverage. Of the hundreds of life insurance policies in the Canadian market - there is a right one for everyone. We help our clients find that one."

Long Term Care Insurance - Home Care vs. Facility Care

by Pablo Prez

Most Long Term Care insurance policies in Canada will pay a tax free daily benefit once the insured's physician provides certification that the insured requires care in a facility or at home because of his/hers inability to perform two or more specified activities of daily living — bathing, dressing, eating, maintaining continence, toileting, or transferring.

Most plans offer a Facility Care benefit as their base coverage. The benefit is typically payable when the insured requires health or personal care services on a long-term basis from a long-term care facility, as recommended by a physician.

Parkinson’s Disease and Life Insurance

Parkinson's Disease (PD) belongs to a group of conditions called motor system disorders, which are the result of the loss of dopamine-producing brain cells. The four primary symptoms of PD are tremor, or trembling in hands, arms, legs, jaw, and face; rigidity, or stiffness of the limbs and trunk; bradykinesia, or slowness of movement; and postural instability, or impaired balance and coordination.

Currently there is no cure for PD but there are a variety of treatments which can provide significant relief.  PD is an insurable illness especially in the early stages where there are minimal localized tremors (i.e. confined to the fingers) and no treatments are required.  Full article

Life Insurance - An Intangible Asset with a Tangible Effect

Family by Mark Evans

One of the reasons life insurance is not purchased by more people is the insurance industry often does a poor job of illustrating it's true value.

Unlike other assets life insurance is not something you can touch. Sure you have a policy with a lot of legal wording but the true value of the life insurance goes well beyond those pages.

Read the full article: Life Insurance - An Intangible Asset with a Tangible Effect

LSM Insurance - Exceeding Customer Expectations

As a business owner I am constantly looking at ways of improving the level of service we provide our clients. This is not only the right thing to do but it is also the "profitable thing" to do.

Research has shown that it costs seven times more to get a new client than it does to keep an existing one.

Don't get me wrong we want new clients but we are also very cognizant of the fact that delivering high valued service will not only help keep our clients coming back for more but will also make us more referable.

I am very proud to say that our company has in large part been built on passive referrals. Passive referrals come from our clients referring their friends, family and co-workers to LSM Insurance without us directly asking for their help.

We have been able to gain this level of trust because we have built on our commitment to become Canada's top on-line insurance provider. LSM Insurance remains 100% committed to making the process of buying insurance as enjoyable and easy as possible and once you become an LSM client you can expect service beyond your expectations.

Below are lists of LSM's CORE principles:

• Listen to our client and create solutions best suited to their insurance needs.

• Using our 15 plus years experience to make the claims paying process trouble free.

• Be sensitive to the fears and scepticism many of our clients have towards insurance advisors and insurance companies.

• Respect our clients' time and apply our knowledge and resourcefulness to make the buying process simple.

• Use state of the art technology and personal service to create the highest level of service.

• Communicate regularly with our clients to keep them up to date with industry trends.

• Be honest at all times and take full responsibility for our actions.

• Seek ways to constantly improve the level of service we provide by encouraging each client to critically evaluate our performance.

• Measure our success by our clients' willingness to recommend us to others.

Buy Term and Invest The Difference

Both Term and Permanent insurance policies use the exact same mortality tables for calculating their respective premiums. However the cost of the two types of policies is much different because Term policies increase as the insured ages and Permanent policies generally provide a level costs for life.

The simplest form of Term insurance is Annual Renewable Term insurance. Under this type of policy the premiums would increase on an annual basis.

The Term insurance marketplace has evolved over the last half century. Many insurance carriers now offer term policies of multiple lengths. Industrial Alliance recently introduced a Pick-a-Term policy which allows the insured to choose a Term policy from 10 to 40 years.

The concept of "Buying Term and Investing the Difference" implies that the money the applicant saves in purchasing a Term policy will be applied to a separate savings account. The advantages of buying a Term policy are the following:

• Lower initial premiums. The applicant can apply the savings into a retirement account or the money can be used to help pay down debt.

• Term insurance may be the only feasible way for many individuals to adequately protect their family.

• Term policies are very simple to understand. The insured's premiums are fixed for a stated Term.

• Most Term policies are convertible. This means the insured can convert the policy without a medical to a Permanent plan. However it should be noted the cost is based on the insured's age at the time of conversion.

As previously mentioned Term policies escalate substantially in cost as the insured ages and "Buying Term and Investing the Difference" does carry several distinct disadvantages:

• Industry studies have shown that the probability of filing a claim under a Term insurance policy is less than 2%.

• Many Canadians still have mortgages and other debts into their 50's and 60's and the cost of maintaining a Term policy can be prohibitive.

• Term policies do not have a cash value. Therefore if the insured misses a payment the policy will lapse in 30 days.

• While the concept of "Buy Term and Invest the Difference" has some merit many consumers simply do not follow through and they are left without life insurance or savings.

The bottom line - each individual has their own unique needs and priorities. An independent broker can work with the insured to design the best plan for his/her situation. You can compare for yourself in the comfort of your own home by visiting our instant on-line quote calculators Term Insurance and Whole Life Insurance.

Disability Insurance versus Critical Illness Insurance

Riga Old Man by Ricardo Liberato

Disability Insurance and Critical Illness share some similarities. Unlike life insurance both policies are payable to the insured rather than the insured's beneficiary.

However, they also have several differences which are often misunderstood by consumers and many brokers. The primary difference is the way in which the proceeds are paid.

Disability insurance pays a monthly income whereas Critical Illness insurance pays a lump sum payout.

Other differences include:

• Disability is related to insured ability to work. Critical illness insurance is related solely to the diagnosis of a specific illness

• Disability insurance generally ends at 65. Critical Illness insurance can be maintained for the insureds lifetime.

• Disability insurance premiums are partially based on occupation class. The insured occupation is not a variable in critical illness pricing.

• Family history has a more significant impact on critical illness pricing.

• An inflation protector rider is available on disability insurance. This rider is unavailable on critical illness policies.

Your insurance advisors ability to understand these differences will guide his/her ability to provide prudent advice.

I would happy to discuss your particular situation please feel free to contact me at 1.866.899.4849 or visit our on-line Disability Insurance and Critical Illness Insurance calculators.

Life Insurance and Estate Planning

Life Insurance is an ideal way to protect the assets you have sacrificed a lifetime to build.

Many Canadians do not realize that upon the death of the surviving spouse their registered investments and the accumulation of their non-registered investments become taxable.

This situation also magnifies itself as we age because the value of these assets increases over time. Unless appropriate steps are taken the tax man could become one of your primary heirs.

CASE STUDY: FRANK & LINDA

The whole family by Derek Bakken

Frank and Linda are in their early 60's and relatively healthy. They have 2 children and 3 grandchildren. They recently retired and have accumulated a significant estate including a primary residence, a vacation home and various registered and non-registered investments.

Frank and Linda want to ensure that their family will be able to use their vacation home in the future and that there will be enough money to fund their future tax bill. With the help of their insurance broker Frank and Linda listed the potential ways they could leave their estate intact:

• Save substantial amounts of money to offset the estate taxes.

• Obligate the estate to borrow the necessary money at the time of death.

• Obligate their heirs to liquidate their property at the time of death.

• Take out a last to die life insurance policy with a tax free benefit equal to the approximate amount of their future tax bill.

Frank and Linda decided to set up a last to die life insurance policy best of all the premium had little to no impact on their lifestyle. Had they waited the cost would have risen and if their health had further deteriorated the plan may not have been available.

LSM Insurance has a team of brokers with specialized knowledge in estate planning. If you have any questions or would like us to tailor a quote to your situation please do not hesitate to call me at 1.866.899.4849.

Empire Life’s One Year GIO Promotion

Empire Life's Guaranteed Interest Option (GIO) accounts offer an excellent opportunity for risk adverse Canadians. The accounts pay competitive interest rates and from April 1st to Jun 30th 2009 the company is holding a special promotion.

Account holders who purchased a 1 year GIO (i.e. an investment with a fixed rate of return for 1 year) can transfer the money into an Empire Life segregated funds within the year and will not be charged any surrender penalties.

Segregated Funds are similar to Mutual Funds but are offered through Insurance Companies.

There are several differences between Mutual Funds and Segregated Funds. The primary differences are the principal guarantee on maturity and on death plus the ability to protect the funds from creditors going forward.

Below are just some of the benefits of segregated funds:

1. Principal guarantees at maturity and at death

2. Market gains can be locked in and guaranteed (Empire offers 2 resets per year)

3. By Passes the will - great for succession planning

4. Possible creditor protection

5. Avoids probate fees proceeds go directly to beneficiaries

We would be happy to help customize a plan to your specific risk level. Please feel free to contact me at 1.866.899.4849 for more details.

Life Insurance and Underwriting - The LSM Difference

I started as a captive agent with Metropolitan Life back in the summer of 1993. Over the last 15 plus years I have seen many changes in the industry. A major change that is not often discussed is the way life insurance companies now underwrite insurance applications i.e. the steps they take to determine what rate a client will pay.

In years gone by life insurance companies use take on all the risk for an insurance application. In today's environment much of the risk is shared with reinsurance companies.

A reinsurance company shares the risk of an insurance policy with the insurance company.  An example might be a $1 Million Term 10 policy with RBC Insurance - RBC Insurance may decide to take on $500,000 of the risk and share the other $500,000 of the risk with the reinsurer. The end result is the applicant must meet the risk profile of two companies.

Underwriting related issues are further complicated by the fact the criteria used by insurance companies and their reinsurers is constantly changing. Applicants travelling to the certain areas in the world may be issued at standard rates today but might be declined or rated 6 months from now.

A brokers ability to work with a multitude of insurance companies and their ability to keep in close contact with the respective underwriters can have a major impact on the premium the applicant pays or if he/she qualifies for insurance.

We recently had a 49 year old female with a history of high blood pressure and cholesterol approved for $350,000 of Term 20 coverage at standard rates after she had previously been rated plus 50% at another company. The reason for the rating was her high blood pressure - but it turned out she had white coat hypertension - which is a phenomenon where the applicant exhibits elevated blood pressure in a clinical setting but not in other settings.

We wrote a cover letter explaining this to the underwriter and her doctor was able to verify the information. The net result she is now paying $78.57 a month instead of $123.42 a month. A savings of $10,764.00 over the 20 years.

If you have any questions with your particular situation please do not hesitate to contact me at 1.866.899.4849.

BMO and AIG Deal Finalized

BMO finalized its deal on April 1, 2009 with AIG Life Insurance Company of Canada. The acquisition which was announced January 13, 2009, is an all cash transaction valued at approximately C$329.5 million.

The acquisition will strengthen BMO's Life's competitive position giving us immediate scale and capabilities in the life insurance market and will allow us to meet our clients unmet insurance needs said Gilles Oulette, President and Chief Executive officer of BMO's Private Client Group.

The deal does seem like a very good fit for BMO but how does it impact AIG policyholders? The answer - AIG policyholders will receive a letter later this month advising them of the change in ownership and the change in name. No action is required and there will be no changes to the policy benefits or guarantees.

BMO will continue to offer AIG's very attractive life and living benefits product portfolio. AIG offers Term 10, Term 20 and Term 30 policies. A Universal policy with over 400 investment options and a variety of Critical Illness plans.

You can get an instant on-line quote at Term Life Calculator or feel free to contact me at 1.866.899.4849.

How are Individual and Group Disability Policies Taxed?

Whether disability income benefits are taxable to the insured will depend on what type of policy the insured has and whether the premiums were paid with pre-tax or after-tax dollars.

With individual disability insurance policy the rules surrounding the taxation of benefits are generally very simple. If the insured pays the premiums with after-tax dollars, the benefits you receive are tax free. If the premium is deducted by the insured than any disability proceeds would be taxable.

Disability insurance purchased through an "association type plan" is called often categorized as a group policy and share certain characteristics of a group plan. However, in terms of taxability of the policy they are treated the same as individual disability policies.

With Employer-sponsored disability plan the taxation of the benefits gets a little more complicated. If the employer pays the premium and the insured does not receive a taxable benefit than any disability benefits received will be taxable. However if the employer pays the premium and the insured receives a taxable benefit for the amount of the premium any disability benefits received will be tax free.

You can get a free on-line quote at Disability Insurance or contact me 1.866.899.4849 and we can design a plan for your particular situation.